Vendors urged to be prudent with some big players out of action

Experienced bloodstock identities have warned vendors to be realistic with their reserves ahead of Wednesday’s opening Magic Millions Gold Coast Yearling Sale session as a number of unrelated issues threaten the auction house’s significant year-on-year growth.

On the eve of the first southern hemisphere yearling sale for 2020, breeders believe that the disastrous bushfires that have ravaged the eastern states of Australia could have an impact, while the exit of a number of big-spending owners could also hurt sales figures.

Arrowfield Stud bloodstock manager Jon Freyer, whose consignment of yearlings is headed by the progeny of champion sire Snitzel, his own sire Redoute’s Choice (Danehill) and the emerging Dundeel (High Chaparral), is far from predicting a bear market but admits that the auction could experience a downturn.

"I think the market is good overall and it is always a good market up here, but I think from a vendor’s point of view it would be prudent to be a little circumspect about your expectations and we will certainly be that," Freyer told ANZ Bloodstock News.

"We will endeavour to meet the market wherever we can and Magic Millions has done a great job (attracting buyers).

"You look around and there are still a lot of people here. We are confident but we are not overplaying it."

Shadwell’s Angus Gold, who spent A$2.815 million on the Gold Coast last January, Phoenix Thoroughbreds (A$5 million in partnership) and Damion Flower (A$2.175 million) will not be active at this year’s auction, causing somewhat of a shake-up of the buying hierarchy, particularly at the top end.

Their loss, however, could be counteracted to some degree by Domeland’s apparent intent to buy at Magic Millions as well as a new buying team leading the Hong Kong Jockey Club headed by Boomer Bloodstock’s Craig Rounsefell.

"It is no secret that we are down three or four big buyers from last year and that will make a significant dent in our market," Magic Millions' managing director Barry Bowditch revealed yesterday.

"But we have worked hard to find buyers at all ends of the market, to have people bidding anywhere from the small numbers to the big numbers.

"Bookings seem to be in line with last year and hopefully we can overcome the loss of a few major players."

Bowditch also acknowledged 'the devastating fires' in NSW, Victoria and South Australia and that they could lead to some owners and trainers no longer being able to attend Magic Millions.

But he said the early number of inspections had been encouraging and is confident there will still be strong depth to the buying bench.

"Any vendors who are being realistic will be able to get their horses sold and hopefully be well rewarded," he said.

"Whether the average or the median holds, who knows, but our job is to get as many horses sold as we possibly can."

Yulong’s Sam Fairgray, who will be operating as both vendor and buyer on behalf of owner Yuesheng Zhang, is optimistic that this week’s auction will be on par with 2019 which achieved a Book 1 average of $237,309 and a median of $170,000.

The Magic Millions sale brings many big-hitters to the Gold CoastCredit: Magic Millions

"There are a lot of nice horses here and the horses in the middle bracket, there are going to be plenty for buyers to get hold of.

"I still think the market will still be positive with the prize-money here and the colt syndicates seem to be going along well and people are still going to be wanting to invest in them."

Darby Racing’s Scott Darby, who was on the ground inspecting yearlings yesterday, said syndicators need to be selective when securing horses they can more easily on-sell as the general economy slows.

"At times the money appeared to be there and at times it has been flat out tough work. You have got to keep that success coming to stay in front of people," Darby told ANZ Bloodstock News recently.

"You have just got to be smart in what you buy. Every year you get a few wrong with a horse at the sales that you really like, but on the other side of things, deep down, you thought, ‘it is probably not going to sell that well’ even though you love the horse.

"You have really got to get that balance right of what you like and what you know will sell otherwise you can get stuck pretty badly."

Fellow syndicators and trainers, many whom buy on spec, could also rein in their spending this year but Bowditch said the significant prize-money levels that have underpinned the industry’s dramatic upswing in recent years would ensure there was strong competition for horses.

“To a degree I think there’s a little bit more of a conservative approach, but plenty of the trainers and syndicators are speaking to us and wanting to do business, as many as ever before, so that is positive,” he said.

“There is a huge reason for them to be here. They have a $10 million race day, there is a lot of graduate success out of this sale and they have our brand behind them to help them sell their horses which goes along way with the two-year-olds.

"I would hope they have a fair bit of faith in what they are seeing out on the ground and, come Wednesday, they will be ready to participate."

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Credit: ANZ Bloodstock Staff