Harness: Strong breeding industry is good for Harness Racing's longevity

It's difficult at times to look back on the history of harness racing in North America and not shed a tear for what once was and will never be again. A view of the past is always tinted with rose colored glasses as memories tend to shed the hardships and glorify the great moments, though fleeting.

To me, it hardly seems that 40 years has elapsed since the dawn of the Million Dollar Babies (1982) series of stakes races at the Meadowlands for 2-year-olds that brought huge investment into the sport. "Wall Street" types quickly saw the potential for gains in the yearling market and breeding business as they poured money into it. The value of broodmares and stallions escalated with the large investment, and for a decent period there was sustained growth in the number of mares being bred and number of yearlings being produced.

As in any type of market when returns don't match expectations, investors pull out their money and move onto other options. Such was the case in harness racing as just a handful of those that invested remained in the sport and were here for the long term.

I bring up Million Dollar Babies only as an example of a showcase that transformed the breeding business and gave rise to sustained investment. The recent Harrisburg sale, combined with Monday's (November 18) Preferred Equine Online auction results, are a clear indicator that investment in breeding stock is not just an overnight fling but a long-term commitment by those who are extremely optimistic of current and future market conditions.

I say future because no one putting money into the breeding business is expecting profits in the near term. Regardless of how other industries can turn on a dime, the breeding business requires time, money and solid planning to see significant return on investment. To those who look at the prices at the most recent auctions as a guideline, they are market driven, and that suggests many people have faith in the future of this sport.

I believe there is a clear difference between the breeding market activity we are seeing today to the one driven in the Million Dollar Babies era. The Meadowlands was the sole driving force at the time, and its program for 2-year-olds was unique during a period where there were few big-money races for rookies. This came before the birth of the Breeders Crown. Million Dollar Babies instantly elevated the price yearlings sold for and the valuation of broodmares and stallions. What we are seeing today would appear to have a broader appeal and is more likely to stand the test of time while energizing a growth spurt in the breeding business. The reason is clearly that regional programs have gotten huge boosts in purse funding, making them sustainable to horsemen and owners not wishing to travel. At the same time, legislation that allowed horses to be eligible to stakes races in multiple jurisdictions has escalated the value of the mares and what their foals will be worth at auction. This dynamic suggests that the beneficiaries will be many, with small breeders and large breeders able to share in the purse funds throughout North America.

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Those paying substantial premiums for broodmares today are expecting to sell foals down the road at higher numbers than we are seeing today. Perhaps of more importance to the overall health of an industry is that those prices offer incentives to smaller breeders as well. This is precisely why I believe the current interest in breeding stock may in fact be something that can be sustained for a longer period than we enjoyed following Million Dollar Babies arrival.

While all attention was focused on New Jersey at one time, it is quite clear today that breeding activity has grown rapidly outside of the Garden State over the last decade, and while it may be sad to look back at what once was, it is exciting to look forward to what is happening today and may prove more rewarding in the future. Purse money for young horses in Ohio, Pennsylvania, Indiana, Kentucky and Massachusetts has helped generate a wider interest for the sport. Today's prices are in part due to investors recognizing that the elements are in place for future growth.

What's interesting about today's breeding market when juxtaposed to the one we witnessed during the Million Dollar Babies era is that neither was driven by pari-mutuel handle. What the late Joe DeFrank conceived with his rich races for young horses was driven by owners paying huge amounts to nominate and sustain, with the track adding a small fraction of the purse. It was innovative for sure but also extremely expensive for owners to participate in. Over time it would drive many owners out of the business as well. Today's resurgence falls more in line with the original objectives that slot machine legislation supported. The idea that agriculture would be the main beneficiary when states authorized slots at racetracks was paramount to getting approval. Now we are seeing the fruits of that labor shared more broadly.

If there is a temporary fallout from the current marketplace, it might be in the fact that the breeding shed will call more horses away from the racetrack, perhaps sooner than racing fans would like to see. In my mind, while we can all look back to a time when horses routinely raced past the age of 3, we must not be blind to the current demands racing puts on our horses and the added risk to owners in racing versus breeding a horse. Sure, having sophomores retire early may thin out the quality of aged races in the following years, but it's hard to quantify just what the loss means to the overall structure of the sport/business. The three sophomore trotters set to enter stallion duty in 2025 all went through dry periods during the stakes season. Yes, there were many brilliant performances as well, but what guarantees are there really that they will be sound enough to meet the added demands of racing with older horses? Collectively, Karl, Sig Sauer and T C I made just 36 starts this year. There was a time when our top horses were able to race more than 30 times a year. Those days have clearly passed, and restricting the free-market system to bring them back will change little.

In the long run, a healthy breeding business is now the best answer we can provide those in political circles that extended a lifeline to the Standardbred sport. Growing attendance and wagering are separate issues that shouldn't be ignored, but owners and breeders are not the ones directly empowered to tackle those challenges. With the recent investment we've seen, the challenge of increasing the future horse population is a goal well within reach.