How horse racing partnerships view racing
State of Racing
Thoroughbred horse racing has seen strong gains in 2013 from sales average as well as attendance and handle. Thoroughbred sales and handle drive the industry from within and is what fuels the game. For those of us involved in thoroughbred horse racing syndicates, yearling sales dictate the two year old market and how difficult it will be to buy the horses we want.
Just a few years ago horse racing was in a bad way financially. There were too many small tracks, an overpopulation of horses, and handle was way down along with on track attendance. One of the first things that happened to rectify this situation was that breeders began breeding fewer horses. There was a move from quantity to quality which is very reflective of our yearling and 2 year old prices the last several years. This is specifically evident in the driving sale each year, the Keeneland Spetember Yearling Sale (http://www.keeneland.com/sales). This is the biggest sale of yearlings each year and really helps determine what the 2 year old market will be like the following year. Again this year the auction had a gross increase, 27.6% from last year as well as an increase in total average of 17%. Based on similar results last year, an increase in the same sale from the previous year which resulted in a significant increase in 2 year old sales across the board would likely point to an increase in two year old sales again in 2014.
Sales are definitely a driving factor for owners, breeders and consignors, but wagering handle at tracks makes the purses we all run for possible. The good news is that so far in 2013 it looks there have been sizable increases in handle throughout the country and specifically in our largest annual event, the Breeders’ Cup (http://www.breederscup.com/). This year, handle was up 11% at the Breeders’ Cup from 2012 and the 2 day attendance was also up over 5%. Now, most people would imagine that the more people we can get out to the track the better the handle will be. That is typically true, but not the only reason that handle has continued to increase year over year for the past few years in events like the Breeders’ Cup. Horse racing has made a big move to online wagering and better televised national coverage of the sports’ biggest events so that our technology driven society can bet and watch from the comfort of their homes or wherever they may be watching.
All in all, if racing can continue to increase handle year over year, maintain strong sales numbers, and breeders begin to breed more horses incrementally, horse racing will continue to flourish. Though it looks like we are headed in the right direction, horse racing will continue to hit road blocks and opposition along the way because there is not one single governing body over the game. Unfortunately, this leads to individual states making their own rules and no guidance or direction from a central entity to keep the game on a straight and successful path. It’s likely that a commissioner will never be a part of racing because of the games lack of willingness for change. So barring that, all of us in the industry will need to continue think forwardly and fight for the necessary changes.
Blinkers On Racing Stable, a leader in thoroughbred horse racing partnerships, brings together the finest in thoroughbred horse racing expertise with the best in business know-how, and above all, a team of people you can trust, to manage your investment. We are committed to helping you experience the joys of thoroughbred horse ownership. For more information on thoroughbred partnerships visit our website or request an information package about our partnership. Keep up with horse racing in California by reading our Blog, finding us onFacebook, following us on Twitter, checking us out on LinkedIn, or visiting our YouTube Channel!