Executive Corner
From
the Executive Office of Doug Burge
Market Forces
Up and down. That is the most accurate way to describe the recent Del Mar Yearling Sale. Up - Buyers were willing to pay premium prices for well-bred, well-conformed California-breds. Down - The middle market, which historically has done well at Del Mar. This was evident in the increased number of horses not sold. It was, indeed, a very selective market.
The sale average fell 13% from the record breaking sale of 1999, due in part to the increased number of yearlings cataloged. However, this average was the highest in the history of the sale for that many horses sold (129). Also, in certain instances there were somewhat high expectations by consignors, reflected in the reserve prices of particular yearlings. The 2000 average of nearly $32,000 was up over 44% over 1998. But we didn't watch the lofty percentage of last year.
As expected, total sales did increase over the previous year and an unprecedented amount of potential buyers graced the sale grounds. It was very gratifying to see a large number of consignors/breeders do very well at the sale. In certain instances, yearlings brought 20 to 25 times the stud fee that was paid by the breeder.
A full evaluation of the standards of acceptance as well as the overall purpose for the sale is foremost on our agenda. Should the Del Mar Yearling Sale focus strictly on cataloging fewer select yearlings (150 or less), in the hopes of building the average and rewarding those breeders who consign the top yearlings bred in the state? Or should the Association, as a service to its membership, continue to provide the opportunities for a similar number of yearlings, as offered this year, to be marketed at the Del Mar venue?
The CTBA sales committee and board of directors realize the potential for the Del Mar Sale and are currently discussing plans for the future. Our mission is to continue to improve the premier yearling marketplace in the state. There is a strong demand for high quality California-breds at Del Mar, and we should strive to offer the product that meets the demand.
On another note, the board of directors recently agreed to begin paying breeder awards on a Semi-annual basis. Those breeders earning awards for the first six months of the year, will receive advancement on the awards earned through June 30th. These awards will be conservatively paid at a rate of 10% of the eligible purses earned, and will be distributed on or around October 1st, 2000.
The board has been considering this for the past three to four years and has decided that such an advancement will assist breeders with their cash flow. As the majority of stud fees are now required by September 1st of the year bred, such a modification would be very favorable to most breeders.
Award recipients will be receiving a letter describing the new advancement process, including a detailed report of eligible breeder award purses earned through June 30.
The remainder of breeders awards earned throughout the year, will be distributed March 31, 2001. The distribution of stallion awards will remain unchanged.
Due to provisions outlined in the Horse Racing Law, a stallion must be in the state from February 1 to June 15 of the year that an award is earned. If the sire left the state after June 15, he must be present in the state by February 1 of the following year, and thereafter have remained until June 15 of that year in order to be eligible for stallion awards. Thus, in these cases any advancement in stallion awards will not be made and the full award will be distributed by March 31st, 2000 as has been the policy in the past.
If anyone has any questions about the amendments to the distribution of awards, please contact our office.
-Doug Burge