IT’S the time of year when stallion farms are announcing their new recruits and publishing their fees for next season.

Generally speaking, the majority of fees seem to be coming down and only the high achievers are getting fee increases.

One stallion who definitely merits a hefty increase is Sands Of Mali but, at time of writing, we don’t even know at which stud he will be standing in 2026, let alone what his fee will be.

As you probably know, ownership of Sands Of Mali is the subject of a legal dispute, and just one part of a court case involving Joe Foley of Ballyhane Stud and Steve Parkin of Clipper Logistics whose 20-year business relationship has fallen apart.

Very briefly, Sands Of Mali was an unexceptional Group 1 winner who was sold at the end of his racing days in 2020 for £270,000. He has stood at Ballyhane Stud for the past five seasons at €5,000 but wasn’t hugely popular until this year when, thanks to some great results on the track, he covered 200 mares.

Last Friday came the unexpected news that Sands Of Mali was for sale and, in a very short public statement, Tattersalls Ireland asked interested parties to email bids to its chief executive Simon Kerins by last Monday.

The Irish Field understands that almost every major Irish stallion farm got involved before the top three bidders were contacted by the sales company and invited to bid again.

We believe the bidding process concluded on Tuesday night but, when contacted by The Irish Field, neither Simon Kerins nor Joe Foley were in a position to reveal who bought the horse.

I’m hearing it’s not Coolmore but, whoever the successful bidder was, it is in their interest to get the news out quickly and start selling nominations.

It made me wonder how you value a horse like Sands Of Mali, or indeed any stallion prospect. This week I’ve been talking to a lot of stallion owners while compiling The Irish Field Directory and I took the opportunity to ask them about the economics of the stallion game. Below are the questions I asked them and a summary of the answers received.

What is the typical financial model used when valuing a stallion prospect?

The first thing you do is use your experience to gauge the stallion fee you are going to set in year one. Let’s say it’s €5,000. Most stallion syndicates have 50 shares and each shareholder is entitled to three nominations every season. In theory that’s a €15,000 dividend each year if the stallion manages to attract 150 mares, though in reality you want shareholders who will support the stallion with their own mares rather than sell their nominations. Pricing the shares at €15,000 is attractive to investors/breeders as they have a great shot at getting their money back before the stallion’s first runners hit the track. Multiply €15,000 by 50 and you have the stallion value, which in this case is €750,000. A €10,000 stallion is worth €1.5 million, and so on. You’d expect the stallion farm to hold between 10 and 20 shares.

In recent weeks you’ll have seen a good few new stallions advertised at irregular fees such as €12,500 or €17,500. It’s a given that breeders will negotiate a discount and, in the examples given, the horse’s actual trading fee could be €2,500 less than advertised. Once the stallion is proven and in demand the stud farm can be stronger on holding the advertised price.

What kind of due diligence or veterinary evaluation is done before purchasing or standing a stallion?

The stud farm will appoint a vet to carry out a thorough veterinary check on the horse. Ideally the retired racehorse should still be sound enough to race, because he will need to be in good shape to cover mares. If he has hindleg issues or previously had a fracture then he might not hold up for covering. If the stallion is forced to stand down for a period then you are not getting any revenue.

For insurance purposes, the veterinary exam must include a detailed study of the horse’s genitalia.

Wind is important. Assuming you are going to be using this stallion on up to 30 of your own mares each year, you don’t want to be breeding a known wind problem. Wind problems are hereditary and yearlings have to pass a wind test after being sold in the ring. If the stallion had a wind operation while racing then that is a concern.

What are the biggest financial risks or misconceptions people have about standing a stallion?

As explained above, buying the stallion is not the risky part as, if you are an established stud farm and you have potential shareholders lined up then you should be able to get your money back before the stallion’s first foals start to race. But the real risk is that if the stallion is a dud then you have polluted your broodmare band for four seasons before you know you got it wrong.

What percentage of stallions actually go on to become commercially or genetically successful sires?

A lot of stallions pay their way but the consensus among the stallion owners I spoke to was that only one in 10 leaves a mark on the breed.

How do you typically source stallions?

You watch racing closely and try to identify a Group 1 winner who could be on the market when his racing career is finished. Even the big operations such as Coolmore, Godolphin and Juddmonte cannot stand all of their Group 1 winners so it’s worth getting in touch and expressing an interest. Ask them to keep you in mind if the horse is for sale or go ahead and put in a bid for the horse privately.

Tricky business

In the end, the economics of the stallion business remain as much an art as a science. While spreadsheets and projections can help to frame a stallion’s potential value, sentiment, timing, and luck often play an equal part.

The Sands Of Mali story is a reminder that fortunes can shift quickly in this game and that, for all the calculations involved, the true value of a stallion is ultimately determined by the mares he covers and the foals they produce.

So, as the stallion rosters fill up and the marketing machines roll into action, spare a thought for those doing the maths behind the romance. For every Sands Of Mali that turns heads and tests calculators, there are dozens of others quietly hoping their time will come. It’s a tricky business but then that’s what keeps us all watching.