02/28/2013 2:07PM

Spendthrift expands Breed Secure to Canadian stallions

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B. Wayne Hughes’ Spendthrift Farm has expanded its "Breed Secure" program to include Grade 1-winning stallions Court Vision and Victor's Cry, both standing their second seasons at Park Stud in Orangeville, Ont.

The Breed Secure program was launched two years ago to relieve commercial breeders of the risk of paying stud fees on some of Spendthrift's young stallions. The program guarantees a profit to breeders who sell the resulting in-foal mare, weanling or yearling at public auction before a stud fee is owed.

The program was recently expanded to include 10 stallions who stand at Spendthrift Farm in Lexington, Ky., as well as to include Dublin, who stands for Spendthrift at Keane Stud in Amenia, N.Y., and My Pal Charlie, who stands at Elite Thoroughbreds in Folsom, La.

“The bottom line is that breeders deserve a better deal, and Breed Secure is one of the programs Spendthrift has to help level the playing field between the breeder and stallion owner,” Hughes said. “We’re pleased about how well-received it’s been by breeders, and we look forward to offering it to Canadian breeders with two young stallions we’re very excited about.”

In the Breed Secure program, after selecting the stallion of choice and getting a mare in foal, the breeder has the freedom to choose the sale and age of which to sell. The options include selling the mare in foal at public auction, selling the resulting weanling at public auction, or selling the resulting yearling at public auction.

Upon sale, the breeder gets the first proceeds up to $10,000 for an in-foal mare, up to $6,000 for a weanling, or up to $12,000 for a yearling. Any dollars after those amounts go towards paying back the stud fee, and once the stud fee is paid back, the breeder retains the balance. Any shortcomings are forgiven if the sale does not meet the minimum for Spendthrift to receive any proceeds. Spendthrift is only entitled to receiving a maximum of the full amount of the stud fee and nothing more.

“I believe it’s a far superior alternative to foal sharing, and maybe it will eventually replace foal sharing in the industry,” Hughes said. “Breed Secure allows commercial breeders to breed a mare to a stallion of their choice without having any risk as it relates to the stud fee. When that breeder takes his or her weanling or yearling to sale, if he or she doesn’t make a reasonable profit, then not a dime of the stud fee will be owed to Spendthrift. Hopefully there is a tremendous profit made at sale, and when that happens, he or she would only be responsible for paying back the stud fee and not a dime more.”