Mark Stanley won the ■ SIRE ANALYSIS/4552 MAKING ■ NEW SIRES OF 2010/4554 Dec. 4 Delta Princess ■ MARK STANLEY/4558 HIS MARK with Quiet Temper ■ RACE REPORTS/4594 BloodHorse.com ® International Thoroughbred Breeding and Racing December 12, 2009/No.50 New Sires Zensational HAS HIGHEST INCOMING FEE FOR 2010 New Sires Entering Stud in 2010 reduced 2009 stud fees (the average 2009 fee for proven sires was 3.3% lower than the average 2007 fee for proven sires), most still wouldn’t have made a profit. Market- Fee Fall Watch considers a yearling profitable if it sells for more than two times the stud fee at conception plus $18,000 for the cost of Average stud fee at lowest level since at least 1999 raising the horse and getting it to auction. Change had to come. BY ERIC MITCHELL Farms with stallions standing in the $10,000 to $14,999 stud fee range are going he Thoroughbred stallion market is 2009 is down 29.3% from its 2006 high. through some of the roughest waters. The still experiencing a lurching drop Among proven sires (with a minimum of average stud for this price range has fallen in value driven largely by steep two crops of racing age), only one of seven 27.3% since 2009, the largest drop among T MarketWatch losses in the commercial markets. stud fee ranges that uses to the seven stud fee ranges above $2,500. North America’s average stud fee for 2010 monitor the market generated a 2009 av- On the top of the decline in average stud w will be around $9,715, or 19.5% lower erage yearling price more than two times fee, competition has increased. Thirty-one than the average 2009 stud fee of $12,066, the average 2009 stud fee. Meaning even stallions with at least two crops of racing which includes only stallions standing for if breeders had bred these yearlings at the age are in this price range as of Dec. 3, $2,500 or more. up 72% from 18 stallions dur- To put more perspective ing the 2009 breeding season. on this decline, the average Average Stud Fee vs. Average Yearling Price In terms of change in stud stud fee has not been below fee, the highest profile sire in $10,000 since at least 1999, $14,000 $65,000 this range is Three Chimneys when The Blood-Horse Mar- Farm’s Smarty Jones, who ketWatch financial newslet- stood for a published fee of ter began regularly tracking $13,000 $60,000 $100,000 through 2008 and detailed stud fee statistics. now stands for $10,000. Two During the past 12 years the $12,000 $55,000 other stallions moved into average North American stud this price range when their fee peaked at $13,714 in 2008, fees were chopped in half— reacting in part to increases $11,000 $50,000 After Market, who dropped in the North American year- to $12,500 from $25,000, and ling average price, which Posse, who dropped to $10,000 AVERAGE STUD FEE AVERAGE peaked at $57,107 in 2006 and $10,000 $45,000 from $20,000. After Market remained strong at $55,300 YEARLING PRICE AVERAGE stands at Lane’s End Farm, in 2007. The average stud fee $9,000 $40,000 and Posse has been relocated is now down 29% from its for 2010 from Vinery to Empire 2008 peak. Not surprisingly, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Stud in New York. the average yearling price for At the top of the market Stud Fee and Sale Averages No. Avg. Avg. % Chg Avg. Mares Avg. 2009 Fls Avg. Mares ’09 Wnlg Avg. ’09 Yrlg Avg. ’09 2YO Avg. ’09 Cover Sire Avg. Stud Fee Range Sires 2010 Fee 2009 Fee ’09-’10 Bred 2008 (% Live Foals) Bred 2009 (No. Sold) (No. Sold) (No. Sold) Yrlg XSF* (No. Sold) $100,000+ 7 $123,571 $141,429 -12.6% 129 98 (76%) 135 $162,703 (37) $236,740 (249) $355,939 (41) 1.67 $425,714 (63) $50,000-$99,999 10 $63,000 $81,500 -22.7% 127 96 (76%) 110 $117,769 (67) $108,575 (405) $143,339 (90) 1.33 $289,703 (74) $25,000-$49,999 17 $29,118 $30,588 -4.8% 114 85 (75%) 123 $71,573 (124) $69,636 (677) $80,460 (189) 2.28 $88,746 (177) $15,000-$24,999 14 $16,607 $22,143 -25.0% 102 74 (73%) 100 $31,849 (87) $38,361 (444) $76,073 (126) 1.73 $53,340 (105) $10,000-$14,999 31 $10,465 $14,403 -27.3% 97 66 (68%) 81 $12,783 (131) $20,828 (821) $53,306 (239) 1.45 $20,546 (213) $5,000-$9,999 67 $5,734 $6,731 -14.8% 67 42 (63%) 51 $5,738 (103) $11,012 (788) $32,495 (360) 1.64 $11,408 (114) $2,500-$4,999 106 $3,076 $3,508 -12.3% 37 22 (59%) 32 $2,071 (7) $6,694 (445) $17,468 (234) 1.91 $4,730 (48) All Proven Sires** 252 $12,925 $15,493 -16.6% Sires by No. Avg. Avg. % Chg Avg. Mares Avg. 2009 Fls Avg. Mares ’09 Wnlg Avg. ’09 Yrlg Avg. ’09 2YO Avg. ’09 Cover Sire Avg. First Crop Year Sires 2010 Fee 2009 Fee ’09-’10 Bred 2008 (% Live Foals) Bred 2009 (No. Sold) (No. Sold) (No. Sold) Yrlg XSF* (No. Sold) First Foals of 2007 71 $6,380 $8,000 -20.2% 47 30 (64%) 40 $17,971 (103) $24,874 (810) $49,427 (432) 3.11 $21,307 (200) First Foals of 2008 71 $6,682 $8,393 -20.4% 55 35 (64%) 39 $37,919 (164) $44,937 (1177) 5.35 $37,713 (177) First Foals of 2009 70 $7,621 $9,184 -17.0% 69 45 (65%) 49 $44,473 (253) $41,120 (221) First Foals of 2010 70 $8,271 $10,457 -20.9% 59 $38,665 (249) First Foals of 2011 34 $6,500 Unproven Sires 316 $7,155 $9,003 -20.5% All Sires 568 $9,715 $12,066 -19.5% * Yearling XSF is the ratio of the 2009 average yearling price to the 2009 average stud fee. **Proven sires have two or more crops of racing age and bred 15 or more mares in 2009. 4552 BloodHorse.com O DECEMBER 12, 2009 among stallions standing for $100,000 or Medaglia d’Oro, the sire of Rachel Alexan- oldest crop is 2 years old or younger, the more, the average stud fee will drop 12.6% dra, whose fee increased 150% to $100,000 average stud fee is down 20.5% to $7,155 to $123,571 from $141,429. The change in from $40,000. from $9,003 in 2009. The highest-priced average fee between 2008 and 2009 also Tough times in the stallion market also new stallion of 2010 is Hill ‘n’ Dale Farms’ had been 12%. Having access to these are reflected in the number of horses en- Zensational, who will stand for $25,000. top stallions at discounted rates has kept tering stud in 2010. Last year 59 horses Among the highest entering-year fees, the demand strong. The average number started their careers with an average stud Zensational’s fee is the lowest since 1996, of mares bred in this fee range for 2009 fee of $11,983. For 2010 there are 34 enter- when Tabasco Cat started at $25,000. was 135 compared with 129 mares bred in ing stallions with an average fee of $6,500, A silver lining exists for breeders that 2008. Only two of the seven stallions in the which is the lowest number of entering have the wherewithal and stamina to ride top fee range had fees that didn’t change— sires and the lowest average fee for enter- out the storm. Eventually, they will bring Darley’s Street Cry and Three Chimneys’ ing sires since 1999. The entering year sire quality yearlings to market that are carry- Dynaformer both remain at $150,000. The class of 2002 had been the lowest during ing a lighter financial burden. other high-end stallions all had their fees the 12-year period with cut from 8% to 40%. The biggest decline 38, and the previous low- Breeders’ Cup Nominated Stallions was seen with Lane’s End’s top sire A.P. est average fee for entering Indy, whose fee dropped from $250,000 sires was $8,031 in 2003. Year of Total Stallions Nomination Live Foal % (+/–) Breeding Season Active Dollars Paid Assessment Paid Prev Fees to $150,000. The only stallion in the top Among all unproven sires, range that had his fee increase is Darley’s which are sires whose 1983 1,031 $10,442,044 1984 1,235 $12,747,528 22.1% w 1985 1,552 $13,760,607 7.9% 1986 1,576 $13,657,120 -0.8% 1987 1,630 $11,697,568 -14.3% Breeders’ Cup Stallion Nominations Down 1988 1,650 $10,983,251 -6.1% 1989 1,505 $9,809,619 -10.7% As stud fees decrease, so does revenue to organization 1990 1,467 $8,763,545 -10.7% 1991 1,363 $7,970,905 -9.0% No organization in racing feels the effect of lower stud fees more than Breed- 1992 1,278 $6,332,474 -20.6% ers’ Cup. One of the major sources of income for the organization is stallion 1993 1,162 $5,406,296 -14.6% nominations.