03/24/2014 5:04PM

Fasig-Tipton: High buyback rate depresses trade at Florida sale

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After a pair of strong sales to start the juvenile auction season, the Fasig-Tipton Florida select sale of 2-year-olds in training could not continue the momentum on Monday, with nearly half of the horses offered failing to meet their reserves.

Fasig-Tipton reported 47 horses sold during the one-day sale for revenues of $13,370,000. That marked a 10-year low in gross sales and a 25 percent drop compared with last year, when 46 juveniles were sold for $17,725,000.

The average sale price dipped 26 percent, falling from $385,326 to $284,468. Meanwhile, the median price of $180,000 was the third-lowest since 2004, and marked a 40 percent drop from $300,000 last year.

The buyback rate continued to climb at the Florida sale, rising to 45 percent after finishing last year at 41 percent. It was the highest rate of horses not sold since 2005, also 45 percent, and marked the second year in a row above 40 percent after four renewals at 35 percent or lower.

The one day sale was held at Adena Springs South in Williston, Fla., after the advent of year-round racing at Gulfstream Park put stalls at a capacity at the auction’s former home, Palm Meadows Training Center in Boynton Beach. Future editions of the sale are planned to be held at Gulfstream.

Demi O’Byrne, representing the Coolmore partnership, secured the highest-priced juvenile of the sale, going to $1.2 million on a Malibu Moon colt out of the unraced Pine Bluff mare Lizzy’s Bluff.

The bay colt, bred in Kentucky by Donard Niall and Michael Niall, is a sibling to three winners from as many foals to race out of the dam, including Grade 3-placed stakes winner Please Explain and multiple stakes-placed Nicklaus Way. He is from the family of Canadian champion Truth of It All, Grade 1 winners I Ain’t Bluffing and Borrego, and Grade 2 winners Acting Happy and Together Indy.

Consigned by Hoby and Layna Kight, agent, the colt breezed one furlong in 10 seconds during the pre-sale under-tack show, tying him for the second-fastest time at the distance. The Kights bought the colt at last year’s Keeneland September yearling sale for $200,000, making for a very successful pinhook. He is the first foal out of Lizzy’s Bluff to eclipse seven figures at public auction.

A half-brother to three-time champion Royal Delta brought the second-highest price of the day, going to Qatar-based Al Shaqab Racing for $1 million. The dark bay or brown Distorted Humor colt is out of the Grade 3-winning A.P. Indy mare Delta Princess, whose four winners from five foals to race also include Grade 1-placed Carnival Court and Grade 2-placed Empire Way. The colt is from the family of Grade/Group 1 winners Biondetti and Indy Five Hundred, Grade 2 winner Lyphard’s Delta, and Grade 3 winner Proud Debonair.

The colt was part of the historic dispersal of the late Prince Saud bin Khaled’s Palides Investments N.V. at the 2011 Keeneland November breeding stock sale, selling in utero when Adena Springs bought Delta Princess for $2.6 million.

Hartley/De Renzo Thoroughbreds purchased the colt for $350,000 at the 2013 Fasig-Tipton Saratoga select yearling sale, and consigned him at the Florida sale, as agent. He was one of seven horses to tie for the fastest furlong of the under-tack show, covering an eighth of a mile in 9.80 seconds.

The colt is the third foal out of Delta Princess to sell for seven figures, with the previous two being purchased by Ben Leon’s Besilu Stables at the 2011 Keeneland November dispersal. Royal Delta brought $8.5 million at that sale as a racing or broodmare prospect, and the Smart Strike filly Crown Queen sold for $1.6 million as a weanling.

For hip-by-hip results, click here.

Fasig-Tipton Florida select 2-year-olds in training sale:

Year Sold Gross Average Median Buyback
2014 47 (+2%) $13,370,000 (-25%) $284,468 (-26%) $180,000 (-40%) 45%
2013 46 $17,725,000 $385,326 $300,000 41%

 

Gary Speich More than 1 year ago
As an owner & breeder everything about this game is way,way,way to expensive. I'm embarrassed to even ask any one to get involved .The whole racing & breading is going to get very compressed in the next few short years.The wave is coming it's out in the horizon its already showing up with low foal crops & short fields.The vast majority of the people involved in the industry are not interested in losing the kind of dollars we've been losing ANY MORE ! I'm certainly one of them.Look at the numbers they don't lie 47% buy back.Maybe the next story should be on the farm owners that took the losses not the million dollar purchases oh & by the way that PETA article will be very instrumental on those TOBA new owner seminars.What a great name for a horse TIME FOR A CHANGE..
gus stewart More than 1 year ago
hmmmmmm...... maybe the big owners as said by other post are seeing the writing on wall become clearer. If they clean up the game and I cant pay more to get to winners circle in stakes and grades races paying extra for a little advantage with trainers who um um who are top trainers um um who don't mind using the best stuff on market.. cough cough I guess I better wait to see if feds step in you think!!!!
Ron Solberg More than 1 year ago
very few hit the big time.
Todd Elliot More than 1 year ago
millions of dollars spent by the rich is like ten dollars to me and even if the horse doesnt pan out,,,the rich get a good write off.
M More than 1 year ago
Two year olds tend to be priced very dear and the likelihood they will cover the total costs at this level is quite low. They can't all be multiple graded stakes winners. Buyers just weigh the risks and rewards. Look up the auction history of the Open Claiming 10K races on Bloodhorses of any field at Gulfstream or Santa Anita. Chances are you can find several six figure gelding that sold at auction for 100, 200 even 300K now on sale at age 5 or for 10 K having earned less than 1/2 their purchase costs lifetime. And this does not even include the massive capital contributions owners have to make monthly 3-5K depending on circuit and trainer and vet bills.
Patricia Doyle More than 1 year ago
as a 2 yr old in training they are selling hope. A bottom claimer is no longer offering that same hope. A 10,000 claimer is just a way to either make a few bucks profit placing that same horse in twelve five ranks. Its the same hope a woman sees in a beauty potion on a department store shelf. They spend a hundred and fifty bucks take the product home, use it and next day look in the mirror. OOPs hope gone,
Mike More than 1 year ago
Rich Sucker's maybe closing their wallets over the video!
Patricia Doyle More than 1 year ago
No not the video. It won't help but I think it goes a lot deeper than that. Not really sure why but it could have a bit to do with the quality of the horses. Where are the stars like Secretariat or Zenyatta? I can barely name 5 derby 2014 contenders. We need some new stars. The War Admirals and Seabiscuits or Phar Laps are desparately. The oldfashioned match races? Where have they gone?
Patricia Doyle More than 1 year ago
Right now we are rearranging the deck chairs on a sinking Titanic. Prospective owners see this and lose interest in the sport. As for remarks about the rich, it is the rich who bring us the stakes quality horses. Disrespecting rich people will not encourage horse ownership. I was one of the poor owners who bought my first horse for $800 to save him from a bad fate. We need the folks like Mike Repole who can bring life to the sport. We should be courting the rich.
Barbara Bowen More than 1 year ago
Maybe that promo video last week depressed potential buyers?
Patricia Doyle More than 1 year ago
The video will not help sales in the future but as I stated above I think it goes deeper. The breeders are going to have to figure it out. Where are the Phar laps, Seabiscuits or War Admirals? The stars make people want to become owners. Racetracks are becoming just a side show for the real entertainment of the casino. Fill the seats in the racetracks with spectators and maybe we will end up with folks clamoring to become owners.
soroka More than 1 year ago
There is something so fundamentally wrong that today will be the highwater mark of 90% of these horses sold valuation.