As industry participants prepare their best-bred horses for the
upcoming 2021 Australian Yearling Sales, here are just a few compelling statistics that showcase
opportunities that exist here in Australia:
•
In addition to a record 80% growth in prizemoney over the past decade, which resulted in a record $720 million distributed last season, an additional $62 million is also available to owners in lucrative state-based Breeders' Schemes and sales incentive race series.
•
Australia proudly boasts the highest average prizemoney for Group 1 events, and the highest average prizemoney per standard race, meaning strong returns to owners are across the industry.
• Australian race fillies and mares are in high demand when they end their racing career - eight Group 1-winning mares sold off the track in 2020 for an auction average of $1.8 million.
2020 Yearling Average: A$106,383
2020 Yearling Top Price: A$1,900,000
We trust the information we provide below gives you a stronger insight into our thoroughbred industry in Australia.
As we all know, the last year has been challenging for everyone around the globe, and the thoroughbred industry was impacted in many ways by COVID-19.
In Australia, with professional management guiding our industry, we were more fortunate than most global racing jurisdictions.
With the strong support of the public and politicians, racing continued throughout the pandemic; our prizemoney remains world leading, and our sales continue to offer buyers unparalleled opportunity.
Simply and factually, no other country gets behind its racing and breeding like Australia.
Our strong foundations have allowed prizemoney to actually increase in 2020.
We offered 52 races worth A$1 million or more, compare that to 29 in America and just seven (7) across all of Europe last season.
RACES RUN WORTH A$1 MILLION OR MORE IN 2020
AUSTRALIA
|
52
|
USA
|
29
|
EUROPE
|
7
|
Australia remains the most vibrant and rewarding place to breed, race or trade a thoroughbred around the world.
Whether it’s the number of million-dollar races; the rewards for Group One Winners; or the returns for Victory in standard races, the strength of Australian Prizemoney proves there is no better place to race than in Australia.
And while many racing jurisdictions across the globe slashed their prizemoney due to COVID-19, we saw increases in 2020.
As stated, there has been an 80% prizemoney growth over the past decade, with no signs that this increase will slow during the next decade.
The rewards are greatest for those horses bred in Australia, with the extra $62 million available through the lucrative state-based Breeders’ Schemes and Auction Sales Race Series.
PRIZEMONEY: AVERAGE GROUP 1 PRIZEMONEY IN 2020
AUSTRALIA
|
A$1,140,000
|
|
USA
|
A$1,000,000
|
(-12% Less than AUS)
|
EUROPE
|
A$574,000
|
(-50% Less than AUS)
|
UNITED KINGDOM
|
A$537,000
|
(-53% Less than AUS)
|
AVERAGE PRIZEMONEY PER RACE IN 2020
AUSTRALIA
|
A$46,245
|
|
USA
|
A$29,234
|
(-37% Less than AUS)
|
EUROPE
|
A$28,604
|
(-38% Less than AUS)
|
| UNITED KINGDOM |
A$20,181
|
(-56% Less than AUS)
|
These riches could not exist without
Australia’s passionate embrace of racing.
Our prizemoney is possible because of our fondness for a flutter; research shows the typical Australian bets an average A$1,095 during a year on our sport.
The Totalizator and all Bookmakers pay a percentage of their turnover back to the racing industry, which ensures strong growth and rewards for the owners and participants who are putting on the show.
AVERAGE AMOUNT WAGERED ON HORSE RACING IN 2019 (per head of population)
| AUSTRALIA |
A$1,095
|
UK
|
A$394
|
FRANCE
|
A$229 |
USA
|
A$57 |
But our country’s engagement goes far deeper than just enjoying the punt.
In Australia, Ownership is not the preserve of the lucky, wealthy few with an oil rig in the backyard, but it is a domain accessible to everyone.
Some of our Owners together enjoying a social day
The fact is we have over 100,000 Australian’s who currently own a share in a racehorse – this is more than double the combined number of owners across America, UK, Ireland and France.
And with no restrictions on foreign owners, each year there are more investors from overseas.
In Australia, it's not just about the earning potential when winning a major race, but the
opportunity to buy a horse capable of doing it.
Unlike other countries, our best thoroughbred nurseries are sellers into the market and year after year, the top horses pass their way through the sales ring before making their way into the Winners Circle.
In Australia, our richest and most prestigious races, those that matter the most to our industry participants - are dominated by locally bred and raised horses.
In the last 10 years, every running of the Golden Slipper, Blue Diamond, Sires Produce Stakes, Caulfield Guineas, Golden Rose and Coolmore Stud Stakes were all won by Australian-bred horses.
Of all Australian-bred Group 1 winners in 2020, 78% of them were offered at auction as yearlings. This compares with 73% in USA and just 52% in Europe.
For those investors searching for Colts, with a long-term dream to have a potential stallion prospect for the breeding barn, here is the
proof and belief in the process, which is
readily identified in the data of the current Top 10 Sires in Australia.
TOP 10 LEADING AUSTRALIAN GENERAL SIRES LIST FOR 2019-20 (& THEIR YEARLING PRICE)
Each of our Top 10 were bred in Australia, and all had been offered at an Australian yearling sale.
SNITZEL
|
A$260,000
|
PIERRO
|
A$230,000
|
I AM INVINCIBLE
|
A$62,500
|
NOT A SINGLE DOUBT
|
A$210,000
|
SEBRING
|
A$130,000
|
FASTNET ROCK
|
PI - RES A$290,000
|
ZOUSTAR
|
A$140,000
|
EXCEED AND EXCEL
|
A$375,000
|
RUBICK
|
A$460,000
|
WRITTEN TYCOON
|
A$50,000
|
When it’s time to retire a champion colt, the market for top notch potential stallions is
ferociously competitive, with several leading studs ready to buy colts with valuations of tens of millions of dollars.
Despite the enormous returns in prizemoney on the track, and the potential post-racing residual values through the stallion market, when it comes to buying an elite colt at the sales, Australia is by far the most affordable marketplace to purchase from, far better than anywhere else around the world.
AVERAGE PRICE FOR THE TOP 50 YEARLING COLTS OVER THE PAST 5 YEARS ($AUD)
AUSTRALIA
|
A$904,182
|
USA
|
A$1,273,866
|
UK-IRE-FR
|
A$1,418,316
|
And when successful racehorses become stallions and go to stud, they command a higher service fee here in Australia, than anywhere else in the world.
AVERAGE SERVICE FEE FOR THE TOP 10 FIRST SEASON SIRES IN 2020
AUSTRALIA
|
$24,216
|
USA
|
$22,500
|
IRELAND
|
$20,525
|
UK
|
$18,220
|
FRANCE
|
$4,150
|
SELLING = YOUR OPPORTUNITY OF A COMMERCIAL RETURN
Securing a significant return on outlay isn’t restricted to leading colts.
Australia boasts the second largest breeding industry in the world.
Top Australian fillies and mares are in high demand when they reach the end of their racing career.
In the past five years, some
50 fillies and mares have been s
old for A$1 million or more at auction or by private treaty after their career on the track.
39 / 50 WERE OFFERED AT AUCTION AS YEARLINGS - AVERAGE YEARLING PRICE A$195,258
Despite the uncertainty caused by COVID-19 in the bloodstock market, eight (8) Group One-winning mares sold off the track in 2020 for an auction average of A$1.8 million.
The global influence of our bloodlines has been seen recently with the 2019 Epsom Derby winner being out of Australian mare Believe’N’Succeed, while 2020 Royal Ascot winner Russian Emperor was the result of Galileo being crossed with another mare to carry the AUS suffix, champion Atlantic Jewel. In America, the top colt at Keeneland September in 2019 was the first foal from Australian mare Bounding.
TRADING
Many of the great racehorses of Hong Kong racing, such as Rapper Dragon, Able Friend, Sacred Kingdom and Silent Witness, are Australian bred, with this list of champions being added to by the likes of Beat The Clock and current Derby winner Golden Sixty.
In Singapore, Australian horses have won all seven (7) Group One contests in 2020, building on a success rate that has seen Australian breds win the majority of the top level races in the past decade with the likes of Inferno, Top Knight and Aramaayo.
This success ensures a strong market for Australian tried racehorses (predominantly geldings), with owners rarely selling to Hong Kong for less than A$250,000 and with many horses priced at over A$1 million each year.
RESEARCH
As with any investment, the thoroughbred is no different and research is critical.
Decide on the nature of your investment, what your budget is and the type of ownership that will suit your needs, wants and expectations.
In Australia, Co-Ownership is very popular, allowing investors to spread risk across several horses, as well as sharing in the excitement.
SOLE OWNER:
|
Own the horse outright
|
SYNDICATE:
|
Own the horse with a group of people
|
CO-OWNERSHIP:
|
Own a share in the horse through an AFS Licensed syndicator
|
BUILD YOUR TEAM
Adam Watt & Dr Tim Roberts inspecting a yearling
Surrounding yourself with industry experts is an investor’s most important role.
Fully Licensed Syndicators hold an Australian Financial Services License and are heavily regulated and audited.
We offer an important role, identifying yearlings based upon conformation, genetics, sale ring commerciality and then manage the partnership for the various ownership teams.
Alternatively, tap into decades of experience through a member of the
Federation of Bloodstock Agents (FBAA), who can provide personalised advice and purchase on your behalf.
SYNDICATOR / BLOODSTOCK AGENT
Adam Watt & Dean Watt
The
Federation of Bloodstock Agents Australia (FBAA) is an established alliance of accredited members who are available to assist in all bloodstock matters. Visit bloodstockagents.com.au.
DEAN WATT is the Managing Director of Bloodstock Agency DEAN WATT BLOODSTOCK (FBAA).
DEAN is also Managing Director of DYNAMIC SYNDICATIONS an AFS Licensed SYNDICATOR.
DEAN is the Only Member of the BLOODSTOCK AGENTS FEDERATION OF AUSTRALIA who is also a Fully Licensed Syndicator.
Dynamic Syndications has the hard-won reputation of being Australia’s Most Successful Syndication company.
It’s reputation for racetrack success is without peer, and our communication in keeping owners informed through regular video, audio and written updates is also without peer.
Most importantly, at the conclusion of the 2020 Calendar Year, DYNAMIC SYNDICATIONS has the industry leading Winners : Runners Strike Rate of 90.7%.
Over the past 15 years, since October 2005 when our first runner was a Rosehill Winner, Dynamic Syndications have achieved
244 Individual Winners from 269 Individual Runners.
Whilst
262 of the 269 Individual Runners have earned Prizemoney = 97.4%
BUYING INTO A RACEHORSE
Each year the best bloodlines available in Australia are offered through 16 major thoroughbred sales organised and conducted by either
Inglis and Magic Millions.
The key yearling sales tie-in with major racing events and involve serious horse trading and socialising, making them highlights you will want to add to your calendar.
At every major sale there are photos and parade videos of almost every lot.
Everyone is welcome to become involved, and when becoming
an Owner with DYNAMIC SYNDICATIONS, you'll always receive fully professional advice and assistance for whatever your needs maybe.
Should you require any further information or impartial advice or representation at the 2021 Yearling Sales, the team at DYNAMIC SYNDICATIONS and / or DEAN WATT BLOODSTOCK (FBAA) are happy to help.
More information is available on our website at
www.dynamicsyndications.com