Viewing entries in
Cape Premier Yearling Sale 2011

Comment

THE BIGGER THE FEE, THE BIGGER THE FALL

South African Stallion Eye
South African Stallion Eye

Price is what you pay. Value is what you get.

(Image : Summerhill / Emac)

“If you box smart, you can still keep in front.”

Mick Goss, Summerhill Stud CEO
Mick Goss, Summerhill Stud CEO

Mick Goss

Summerhill Stud CEOFollowers of these columns will remember our commentaries on the exposure breeders (and in particular, our cheque-book breeding friends) faced when committing themselves to the payment of stud fees in the region of R250,000. There were some who suggested our statements were prompted by envy, or that they were a marketing ploy to divert traffic our way.

The problem with either of these observations was that we’ve always taken the view that the longer one is preferable, and that short term gain just as easily becomes resentment, while on the marketing side, we long ago understood that when horsemen are infatuated by a stallion’s promise, they will go where their instincts take them, willy-nilly.

There’s been much said about the combined receipts (R215million) of the Cape and National Yearling sales, and there is value in these reflections, but the dirty truth on high service fees resides in the number of people who failed to recover their production costs on the three top priced stallions of the 2008 season. It is so that a number of other yearlings failed to recover their production costs, including those conceived off considerably lower fees, (like some of ours,) but the “hiding” was substantially bigger at the upper end.

Given their pre-eminence as the leading sires of Stakes winners (see table below), Western Winter, Fort Wood and Jet Master richly deserve their place at the top of the stud fee table. The question is, what should the top stud fees be?

Click here to view

South African Stallions Lifetime Statistics…

We’ve always lived by the adage that, against the average price of a sire’s progeny, breeders should be able to make a profit. In the end, it’s the only sustainable solution. That won’t stop some horses failing to return a positive outcome, but in broad terms, it gives most producers a chance. In the context of a stud fee approaching a quarter of a million Rand, payable upfront, (with a live foal guarantee it should be said,) and adding a R100,000 to R120,000 for the costs of the keep and amortization of the broodmare, the foal, the holding cost on your money, the cost of marketing and the commission payable to the sales company, we would estimate an outlay of the order of R370,000 for the progeny of such a stallion. It’s illuminating, in that context, to visit the results of the National Yearling Sale, where the combined offering for the three top stallions was 74, 69 of which were sold, and a disappointing 41 failed to make their costs of production. There will be those who’ll tell you, that’s how markets work. And if you buy at the top, it’s the risk you take. On the eve of my departure for the AGM of one of the world’s best risk managers, Warren Buffet’s Berkshire Hathaway, I’m tempted to remember, “Price is what you pay. Value is what you get”, and another parol, “It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”

Against these numbers, horses like Captain Al (average R234,808), Silvano (R277,667), Kahal (R167,105) and Muhtafal (R182,692), all established sires in their own right and all standing in the R50,000 – R60,000 bracket at the time, just managed to get their customers home in the black, yet it remains a matter of concern that proven sires of this calibre should be sailing so close to the bone. The ex-Summerhill stalwart, National Emblem, with his third Klawervlei crop on offer off a stud fee of R80,000, averaged R151,250, the surest sign of how brittle (or should we say fickle?) the market can be.

One thing’s for sure, and that is that the market will demand a reappraisal of stud fees, and the reality is, the market will get what it wants. Going forward, and looking at the production capacity of the nation’s leading stallions in the way of Stakes winners, it’s probably fair to say, our market still remains, despite these numbers, the best value-for-money in the world. And if you box smart, you can still keep in front.

Any stallion able to sustain a stakes’ winners to runners percentage of 10% and beyond, meets the international standard for an exceptional sire, and it seems South Africa is in a purple patch right now, measured in those terms. That Western Winter, who tops the log, should have 9 of his 15 on offer at the National Sale, make less than the production cost, begs the question we asked in the immediate aftermath of the sale, and that is just how much the money taken at the Cape Premier sale, knocked-on to the final numbers in Johannesburg.

Comment

Comment

NATIONAL YEARLING SALE 2011 IN PERSPECTIVE

National Yearling Sale 2011
National Yearling Sale 2011

National Yearling Sale 2011

(Photo : Heather Morkel)

“For Major Sales, 2011 The Best Year Ever”

Karel Miedema Sporting Post
Karel Miedema Sporting Post

Karel Miedema

Sporting PostThe Cape Premiere Yearling Sale took many of the best yearlings away from the National Yearling Sale. To keep the numbers up, some 200 yearlings who normally wouldn’t have made the grade appeared in the National sale catalogue. No wonder the numbers at Nationals were down on previous years. Yet when put in proper context, the major sales of 2011 make it the best year South Africa has ever had. Ever!

At Nationals last year, 490 yearlings averaged R326k, with a median of 225k. At Nationals this year, 472 yearlings averaged R244k, with a median of 150k. It’s wrong, though, to make a straight comparison. As much as a third of the 2011 catalogue was made up of yearlings who didn’t belong at Nationals. Buyers took note and bid accordingly.

So how do we sensibly assess 2011, compared to previous years?

One way is to take the 214 yearlings sold at the Cape Premier Sale, and add the highest prices from the National Sale to get to a comparable number of yearlings sold to that of Nationals in 2010. Another way is to lump the Cape Premier Sale and National Sale together, and then from the top-price down pick a number of yearlings comparable to those sold at Nationals in 2010. Either way 2011 beats 2010 hands down. Both scenarios give an average price over R380k, compared to R326k last year. The median prices for the two scenarios are 260k and 275k - well above the 225k recorded last year.

When split by sex it’s much the same. The colts of 2011 average over R400k (vs 373 in 2010), with a median of 275k and 300k (vs 250k in 2010). The fillies average is 340k (vs 267k in 2010), with a median of 250k for both scenarios (vs 200k in 2010).

Percentage-wise those are increases of 15% and more in all cases. Looking back in time, the previous ‘best’ year for Nationals was 2008, with an average of R398k and a median of 260k - both below our double-handed 2011 scenarios.

No doubt the unqualified success of the Cape Premier Yearling Sale deserves the kudus. But overall speaking there’s every reason to be pleased with what has been achieved in 2011 at our two major sales.

The tables below shows the last 2 years of sales and a list of yearling millionaires, how they’re bred, who bought and who sold.

NATIONAL YEARLING SALE 2011

In Perspective

Scenario

Yearlings

Average (ZAR)

Median

National Yearling Sale 2010

490

326,000

225,000

National Yearling Sale 2011

472

244,000

150,000

All Cape Premiere Yearling Sale 2011 and All National Yearling Sale 2011

686

296,000

200,000

All Cape Premiere Yearling Sale 2011 and Top National Yearling Sale 2011

488

380,000

260,000

Top of all Cape Premiere Yearling Sale 2011 and National Yearling Sale 2011

479

387,000

275,000

Colts

Yearlings

Average (ZAR)

Median

National Yearling Sale 2010

273

373,000

250,000

National Yearling Sale 2011

258

262,000

175,000

All Cape Premiere Yearling Sale 2011 and All National Yearling Sale 2011

397

323,000

200,000

All Cape Premiere Yearling Sale 2011 and Top National Yearling Sale 2011

295

405,000

275,000

Top of all Cape Premiere Yearling Sale 2011 and National Yearling Sale 2011

287

414,000

300,000

Fillies

Yearlings

Average (ZAR)

Median

National Yearling Sale 2010

217

267,000

200,000

National Yearling Sale 2011

214

221,000

150,000

All Cape Premiere Yearling Sale 2011 and All National Yearling Sale 2011

289

258,000

175,000

All Cape Premiere Yearling Sale 2011 and Top National Yearling Sale 2011

193

343,000

250,000

Top of all Cape Premiere Yearling Sale 2011 and National Yearling Sale 2011

192

246,000

250,000

NATIONAL YEARLING SALE 2011

Lots R1 Million Plus 

Price (ZAR)

Lot

Sex

Sire

Dam

Damsire

Buyer

Vendor

3,200,000

196

Filly

Jet Master

Jalberry

Jallad

OA Ferraris Racing

Varsfontein Stud (Agent)

3,000,000

352

Colt

Jet Master

Promisefrommyheart

Elliodor

A Papageorgiou

Varsfontein Stud

2,100,000

217

Colt

Trippi

La Patoneur

Badger Land

Mike Bass Racing

Klawervlei Stud

2,000,000

421

Filly

Giant’s Causeway

Skyline Drive View

Distant View

Mayfair Speculators

Summerhill Sales

1,700,000

189

Colt

Jet Master

Island Squaw

Al Mufti

Form Bloodstock

The Alchemy

1,600,000

244

Filly

Nayef

Letsimpress

General Monash

Blandford / Mrs R Beck

Drakenstein Stud

1,400,000

304

Colt

Silvano

National Vixen

National Assembly

Form Bloodstock

Riverton Stud

1,350,000

151

Filly

Fort Wood

Gypsy Queen

Royal Chalice

Varsfontein Stud

Rathmor Stud

1,250,000

316

Colt

Giant’s Causeway

Nuance

Rainbow Quest

Good-Hope Racing

Wilgerbosdrift

1,200,000

599

Colt

Jet Master

Bushra

Badger Land

John Freeman

Varsfontein Stud

1,100,000

578

Colt

Silvano

Badger’s Gift

Badger Land

Mike Bass Racing

Riverwold Stud

1,000,000

546

Colt

Western Winter

Akinfeet

Fort Wood

Form Bloodstock

Lammerskraal Stud

1,000,000

268

Colt

Jet Master

Majestic Guest

Northern Guest

Park Bloodstock

Klipdrift Stud (Agent)

1,000,000

234

Colt

Jet Master

Larapinta

Al Mufti

Rainbow Beach Trading

Ascot Stud

1,000,000

221

Colt

Jet Master

Lady Caroloty

Southern Halo

Knut Haug

Highdown Stud

1,000,000

176

Colt

Tiger Ridge

Ilha Da Vitoria

Candy Stripes

Form Bloodstock

Wilgerbosdrift

Extract from Sporting Post

Comment

Comment

2011 CAPE PREMIER YEARLING SALE SUMMARY

Cape Town Premier Yearling Sale at the Cape Town International Convention Centre
Cape Town Premier Yearling Sale at the Cape Town International Convention Centre

Cape Premier Yearling Sale - CTICC

(Photo : Astrid Stark)

CAPE PREMIER YEARLING SALE

Cape Town ICC, 27-28 January 2011

The inaugural Cape Premier Yearling Sale, staged at the Cape Town International Covention Centre, drew to a close Friday. The sale attracted plenty of international interest with 214 lots sold for turnover of R87,900,000 (US$12,222,105). There was a clearance rate of 79 percent. The average price was R410,748 ($57,113) (US$1=R7.192).

Leading vendor at the sale, by aggregate, was Klawervlei Stud. They sold 32 yearlings for an aggregate of R15,725,000. Leading vendor, by average (three or more sold), was Lammerskraal Stud. They sold a trio of yearlings for an average price of R933,333. Champion sire Jet Master had an outstanding sale. His 21 yearlings sold for an aggregate of R15,585,000 and an average of R742,143, which made him the leading sire by average as well. A pair of colts by the stallion, both knocked down for R2.5 million, ultimately topped the two-day sale. Lot 269, a son of Jet Master (SAf) - Alexandra Bi (Ire) (Darshaan {GB}), was knocked down to Singapore-based trainer Patrick Shaw.

Patrick Shaw was also responsible for Thursday’s R2 million son of Captain Al (SAf) - Leading Dame (SAf) (Jallad). Lot 269 is a half-brother to three winners from four to race, including Alexandra Rose (SAf) (Caesour), a Group 2 winner and twice Group 1-placed in South Africa. She later finished runner-up in the Cape Verdi Stakes in Dubai and landed the 2008 Monrovia Handicap (G3) for Team Valor and partners. The bay colt was consigned by Varsfontein Stud. The other son of Jet Master to sell for R2.5 million was lot 102. Out of the Al Mufti mare Laptop Lady (SAf), the colt was consigned by Klawervlei Stud. He was bought by Gauteng owner Ebrahim Khan.

Both the venue and quality of horse on offer drew praise from all involved and buyers were very impressed by the sale.

Angus Gold, racing manager to Sheikh Hamdan whose association with Summerhill goes back some 20 years, had this to say, “Everyone has been tremendously positive and upbeat for this sale, and judging on what I have seen, they have every right to be. The venue is wonderful, and there are a number of wonderful horses up for sale, who compare favourably with the horses I have bought at the country’s National Sale. Despite being in the middle of a busy city, the horses at the sale have been remarkably settled and relaxed.”

Team Valor’s Barry Irwin remarked, “I came here to buy three, and am leaving with seven horses. There were some very nice horses on offer, and I was happy to see the horses were not backward, but of a very high quality. The selection of horse on the sale was excellent and, despite having a relatively small number, I still found 16 fillies I was keen to buy.”

Dubai owner Ali Alqama, who has horses in training with champion trainer Mike de Kock, purchased three horses at the sale, all of which are headed to Dubai. He said of the sale, “The prices are very reasonable in South Africa, which I like. There were some very nice horses on offer, and South African horses have an excellent record in Dubai. After this sale, I will definitely be coming to the Emperor’s Palace National Yearling Sale later in the year.”

All in all, the sale proved tremendously popular, with both buyers and vendors praising the concept, venue and quality of horse on offer.

TOP LOTS SOLD FOR R1,000,000 PLUS

Lot

Horse

Sex

Sire

Dam

Vendor

Price (ZAR)

269

Alexandra Palace

Colt

Jet Master

Alexandra Bi

Varsfontein Stud

2,500,000

102

One Sunday Morning

Colt

Jet Master

Laptop Lady

Klawervlei Stud

2,500,000

106

Tequila Sunrise

Colt

Captain Al

Leading Dame

Klipdrift Stud

2,000,000

220

Abercrombie

Colt

Trippi

Stratos

Drakenstein Stud

1,800,000

113

Yorker

Colt

Jet Master

Little Indian

Varsfontein Stud

1,800,000

223

09 Sunshine Lover

Colt

Captain Al

Sunshine Lover

Klipdrift Stud

1,700,000

101

Lord Windsor

Colt

Silvano

Lady Windsor

Varsfontein Stud

1,700,000

274

Solomons Wall

Colt

Western Winter

Angelina

Lammerskraal Stud

1,700,000

144

Legal Trip

Colt

Trippi

Niyabah

Drakenstein Stud

1,500,000

114

Tiger In Africa

Colt

Tiger Ridge

London Niece

Wilgerbosdrift Stud

1,500,000

164

Captain Lars

Colt

Captain Al

Polar Charge

Klawevlei Stud

1,400,000

184

09 Russian Muse

Filly

Windrush

Russian Muse

Normandy Stud

1,400,000

212

Force Majeure

Filly

Jet Master

Star Wars

Arc-en-ciel Stud

1,400,000

188

Grassland

Filly

Western Winter

Savannah Breeze

Highlands Farm

1,200,000

14

Epic Tale

Colt

Western Winter

Classique Story

Avontuur Farm

1,050,000

136

Mussoorie

Colt

Trippi

Mountains Of Mist

Drakenstein Stud

1,050,000

22

Dime A Dozen

Filly

Jet Master

Dame Kiri

Klipdrift Stud

1,000,000

276

Count To Ten

Filly

Count Dubois

Aquilonia

Klawervlei Stud

1,000,000

Extract from Thoroughbred Daily News

bloodstock south africa
bloodstock south africa

For more information, please visit :

www.tba.co.za

Comment

Comment

THE J&B MET, THE BUZZ AND THE CAPE PREMIER YEARLING SALE

Run For It J&B Met runner
Run For It J&B Met runner

Run For It

(Photo : Gold Circle)

“It is true, real pleasure is genuinely rare…”

The “big three” of South African racing are the Vodacom Durban July, the Sansui Summer Cup and this weekend’s J&B Met in Cape Town. In terms of fan appeal and betting turnover, the Met ranks second only to the July, and Kenilworth racecourse will be packed to the rafters to see whether the three-time Horse Of The Year, Pocket Power, can pull off another epic. It’s said that the Met could be the final outing for the eight-year-old son of Jet Master, so he goes to the post with a touch of nostalgia, and the support of everyone who has the smallest element of sentiment in their makeup.

It won’t be plain sailing though, even at the weights, which favour the best horse in the race, because the form of Mother Russia in the L’Ormarins Queen’s Plate was more than just a warning shot. Mike de Kock has proffered excuses for her previous slightly below par performances in last year’s Met and this year’s Summer Cup, and believes she’ll get the trip.

The class of this year’s three-year-olds is up for judgement with the participation of the Guineas runner-up, Run For It, whose rapid-fire finishes in his last couple of outings, suggest he’ll get the trip. Ten furlongs is a long way against older horses for a three-year-old, but against those of his own age, this one has shown in their class at least, he’s a top performer. At Summerhill, we’ll obviously be rooting for the Kahal colt, Tales Of Bravey, who carries the silks of ex-Gold Circle Chairman, Roy Eckstein. He was second in the Queen’s Plate, staying on stoutly, and is proven at the trip.

You don’t get to the J&B Met though without feeling the buzz of the inaugural Cape Premier Yearling Sale. The recent exploits of Group One heroes, J J The Jet Plane and Gypsey’s Warning in recent times in Hong Kong and the United States, have reinforced the international repute of the South African-bred racehorse. The plain truth is, our horses are good, and they can hold their own with the best in the world. Better than that though, they represent the best value in the world, half the price of New Zealand-breds, and a third of Australian-breds. It gets better from there if you compare them with northern hemisphere markets in the United States, the United Kingdom and Europe. And the fact that roughly one in five of the catalogue pages is recognisaible to international connisseurs of bloodstock, gives the overseas investor a feeling of warm familiarity.

This country has a long tradition of excellent horsemen, and our colleagues in the Cape rank with the best anywhere. There’s a reason why our horses run as fast as they do, and it starts with the land, the climate and the management of our stud farms.

We’re not there in horseflesh terms, but we’ll be there in body and in spirit. The Summerhill team wishes our colleagues a great sale.

bloodstock south africa
bloodstock south africa

For more information, please visit :

www.capepremiersale.co.za

Comment