Current trends in the market place

THE afternoon session of the recent ITBA Seminar held at Tattersalls Ireland looked at current trends, and panellists were point-to-point supremo Richard Pugh, leading National Hunt consignor Michael Moore of Ballincurrig House Stud, journalist Richard Forristal, syndicate manager Jim Balfry and veterinary surgeon Liam Sharp from Lisadell Equine Hospital.

Manager of the Supreme Horseracing Syndicate, Jim Balfry got proceedings underway when responding to the opening question, what does the modern owner want?

“A winner straight away, tomorrow,” he stated categorically. “It’s hard starting with just one horse and easy to become disenchanted if the horse gets injured.”

Leasing horses enabled the syndicate to have more horses running for it. “The problem is the disconnect from going to the sales and the 18-month wait to race the horse, it’s a major turn-off.”

POINT-TO-POINT MARKETPLACE

Richard Pugh concurred. “At Leopardstown on Saturday none of the horses were for sale, but every point-to-pointer can be bought, it provides an opportunity for people to buy a proven horse.

“The single reason for the success of the Irish point-to-point business is the Foot and Mouth outbreak; it created the autumn season and the autumn season allowed businesses to be structured. We now have a full year cycle and it has been a huge factor in keeping the stores sales going.”

Michael Moore verified this. “We started in the early 2000s consigning stores for the sales and at that time you’d buy 20 in the hope you’d get one good horse. Then the recession hit and the point-to-point market came in and gave an opportunity to buy a good pedigree for half the price of five years earlier.

“It takes out the high production costs, the point-to-point handlers are taking the pain and you can see what you’re buying.

Foals are the first chance to buy for the end market and only a handful can afford to buy them and bring them through.

The next point is the three-year-old sales and by then the percentage of nice horses is getting smaller again, and only certain owners can afford to buy.

“Then you have the point-to-points,” continued Moore, “and it’s averaging €40,000 to get them there, they are not making enough for what they’ve cost.”

He concluded with the interesting observation: “The further away from the racecourse the more a colt is worth, but the closer to a racecourse the less valuable a filly becomes.”

MIDDLE LEVEL SUFFERING

Less positive were the contracting figures of ownership and National Hunt horses in training and Richard Forristal had concerns that the middle level in particular was suffering as a result.

Competitive racing increases betting revenue, attendance, and it all comes back to the numbers of horses in training.

“The end product has to engage people and people have to feel like investing. Not many sports employ up to 20,000 people and more should be done. Re-opening races to further entries is not addressing the problem, it’s addressing a symptom of the problem.”

Pugh pointed out: “Ten to 15 years ago if we’d told Aidan McGarry (ITM) that we would have all our current big owners he would have thought it unbelievable and that’s a positive.

My father never had a runner in a Grade 1 and it didn’t matter to him if big people were winning Grade 1s, he was competing at a different level. We should be celebrating great owners and horses. If the owner below that level is not happy, therein is the problem.”

Aidan McGarry spoke from the audience to explain that ITM had contacted owners who had dropped out of the industry, many of whom were no longer living in the country. “It was by far a financial issue but there is not a single factor.” Lack of communication from trainers, confusion over HRI administration and poor racecourse facilities were among the problems cited.

“For a lot of people they’re still only just coming out of the recession and the slow recovery is not the biggest surprise,” McGarry said.

“The figures of 2016 are showing a slight increase and there are positive signs over a short period so far.”

He made the valuable point that a handful of owners are “recession-proof” and as syndicates and owners who were not competing at the higher level dropped out, it heightened the difference between the dominant and smaller owner.

TOO MANY GRADE 1S?

Forristal questioned the increase to the Grade 1 programme and felt there should be more opportunities at a lower level.

Pugh felt that might solve a problem, but pointed out a lot of prize money had been put into handicaps to help the small owner but this has simply driven the better horses into the “small man’s races”.

Balfry declared simply: “What most owners are looking for is the day out and good facilities. They’re not worried about Grade 1s.”

Jason Morris responded that the blacktype programme was carefully thought out and was split between a range of distances and types to cater for all horses throughout the year. He agreed that Grade 2s and 3s needed to be looked at to make them more competitive but felt the ratings reflected the correct balance of Grade 1s.

Forristal addressed breeders and encouraged change. “It seems to be in our psyche that we’re thinking of traditional sires we all like to see,” he warned. “If you look at the sires of leading horses, they’re not fashionable but they’re doing alright. A good few leading horses are by sires I’ve never heard of. Whatever they’re doing in France they’re doing it well and we need to reflect on it. There is more emphasis on the quality of the mare.”

This was backed up by statistics supplied from the audience by the TBA’s Bryan Mayoh, who stated that the best racehorses were consistently produced by the best racemares.

He also had figures to show that high-class 10-12 furlong performers consistently sired the best National Hunt horses.

“The secret is trying to breed an animal good in conformation and movement,” reminded Moore. “Athleticism is still the most important. You don’t have to be bred in the purple.

“What’s most important is going to a stallion where you can make a profit, not in going to the most fashionable stallion.”

in addressing the issue of the French-bred having an earlier introduction to the racecourse, which Moore felt was due to being an earlier maturing animal compared to its Irish counterpart which Willie Mullins disputed, Pugh provided the interesting fact that, of 795 point-to-point horses to win four-year-old maidens, 510 (64%) of them won on the racetrack, 83% returned prize money and only 4% didn’t run.

TWO-YEAR-OLD SALES

This led to the question, should there be an early programme and an inclusion in the Derby Sale for two-year-olds?

Pugh was all for dipping a toe in the water and this theme was later picked up on by Willie Mullins, concluding the first session almost where it began – instant gratification for owners on the racecourse.