Investors’ Guide 2 3 Land of Opportunity Dear Reader, Welcome to the Aushorse Investors’ Guide. We believe Australia is the most vibrant and rewarding place to breed, trade or race a horse in the world. Our prizemoney has soared 84% in the past decade, meaning there is more money on offer here than the UK, Ireland and France combined. Despite these riches, there’s a strong argument to say our yearling market is undervalued at the top end, especially for colts. In the past year the Australian dollar has also weakened considerably against major currencies, meaning there has never been a better time to invest. And if you’re considering becoming an owner here – and all are welcome, there are no restrictions on overseas owners – you’ll have plenty of company: one in every 244 Australians owns a share in a racehorse, showing just how popular the sport is Down Under. We hope you enjoy this guide, Chief Executive Officer Vow And Declare repels 12 internationally trained runners in the A$8 million Melbourne Cup 4 5 GLOBAL Unrivalled Riches PRIZEMONEY + % TRENDS Australian prizemoney 10 YEAR CHANGE 84 growth has easily “If I was lucky enough to (2009 – 2018) Australia Increase in prizemoney outstripped every other be born again, I would move nation in the last 10 years to Australia and start training – soaring some 84%. there. It is the country of + % As well as a host of new races – the future for racing; among them the A$14 million The 54 Everest and the A$5 million All-Star the prize money is fantastic, UK Mile, the richest 1200 and 1600 metre the enthusiasm, the events in the world – purses at all levels have been growing significantly. In willingness to participate.” AUSTRALIAN the two biggest racing cities, Sydney RACES Luca Cumani, and Melbourne, minimum race values Former Leading Trainer OVER $1 MILLION are A$125,000 at the weekend and A$50,000 on weekdays, and even at provincial tracks minimum values are A$22,000. Incredibly, there are now 60 races + % in Australia worth A$1 million or more, 10 22 EUROPE which compares to just 22 of this value France 2019 across the whole of Europe. + % 2019 And owners contribute much less 5 to prizemoney than overseas. In 2017 Ireland Across all entry fees in Australia accounted for - % just 4.5% of total purses, compared to of Europe 15.3% in the UK and 23% in Ireland. 4 there are just USA 22 races worth 60AUSTRALIAN A$1 million 2016 RACES 2014 “The prize money there has 39 2018 just exploded and that’s the sign RACES 28 2017 of a well run and supported industry. RACES 2015 It’s supported by the fans, the breeders, 2012 the owners and the government.” 36 45 52RACES Ned Toffey, Spendthrift Farm 21 RACES RACES RACES 6 7 Home Advantage % In addition to standard A$180,000 if their eligible horse wins a nominated race. prizemoney, there are a host The Magic Millions series includes 100In the past 10 years, every winner of the breed-shaping of valuable state breeding some 22 races and A$12.7 million of schemes and restricted prizemoney, with a A$10 million raceday Blue Diamond Stakes, Golden Slipper, Caulfield Guineas, Golden in January, while their rivals Inglis offer Rose and Coolmore Stud Stakes have been Australian-bred. sales races. Combined, these A$8 million in bonuses across eight races. incentives mean there is And for the most important races it an extra A$62 million pays to buy Australian. In the past 10 years all the winners on offer for locally bred or of the breed-shaping Group One races sold horses. the Blue Diamond, the Golden Slipper, the Golden Rose, the Caulfield Guineas The generous VOBIS (Victorian), QTIS and the Coolmore Stud Stakes (Queensland) and BOBS (NSW) breeding have all been born and raised in schemes offer owners bonuses of up to Australia. Each state offers generous bonuses for locally bred horses. Together these add up to A$62 million. Boomsara wins the Magic Millions 3YO Guineas 8 9 PURCHASE PRICE SERVICE FEES OF TOP 50 COLTS FRESHMEN STALLIONS FIVE YEAR AVERAGE* IN US$ (2015-2019) TOP 10 SIRES ANNUALLY BY ADVERTISED FEE 10 YEAR AVERAGE IN US$ (2010-2019) $25,000 $26,000 $1.1m Australia Europe $17,000 USA $16,000 UK $6,000 Ireland $993k France USA $650k Australia A Strategic Play Purchasing an elite colt at the Australian yearling sales is “The Australian stallion market more affordable than in other is one of the most exciting parts of the world. stallion markets in the world. Over the past five years, the average The returns with Zoustar have price for the top 50 yearling colts in been amazing and, obviously Australia was 40% less than Europe and 35% less than America. the horse has to do it, but if he And in addition to the fact they are racing for more prizemoney, Australian does, the rewards there are colts are often worth more as stallion as great as anywhere.” prospects at the end of their racing careers. David Redvers, Qatar Racing Over the last ten years the average first season stud fee for top 10 freshman sires in Australia was higher than in the USA, Ireland, France and the UK. “The reward for developing a This means that owners of top colts high end stallion prospect in have very valuable commodities. In the past five years horses such as Merchant Australia is probably greater Navy, Vancouver, Russian Revolution than elsewhere due to the Russian Revolution and The Autumn Sun, have been sold or was a A$320,000 syndicated for stud duties at valuations commercial value placed on yearling, won A$1.4 between A$20 million and A$40 million. them in the market.” million on the track, and covered 226 mares *Freshmen stallion data from Racing Post for European horses, Australian Stud Book for Australian stallions & Bloodhorse Tom Ryan, SF Bloodstock at A$55,000 in his first Stallion Register for American horses season at stud. 10 11 Secondary Markets The Best Of Bloodlines As well as stallion potential, Australia offers a mix of there is a lucrative market for bloodlines unmatched tried horses into Asia. anywhere else in the world, with breeders having access Although some yearlings are bought specifically for export, many owners and to the best sire lines from trainers prefer to source stock that has across the globe. raced or trialled publicly. It is rare for a horse to be sold to From the early shuttle sire Hong Kong for less than A$200,000 Leicester experiment with Bluebird and Last and there are many horses sold A$10,000 Tycoon, through to the dominance each year for well in excess of A$1 PURCHASE PRICE of Danehill, northern hemisphere million. In 2018 some 238 horses A bloodlines have helped shape the were exported from Australia $1 m + Australian breed, with modern-day to Hong Kong, along with 182 to SOLD TO greats More Than Ready, Medaglia Singapore, where sale prices are HONG KONG Extra Brut d’Oro and Street Cry creating their slightly lower. own legacies here. A For those racing fillies, there are also $100,000 In 2019 there were 21 shuttle stallions handsome dividends if successful. PURCHASE PRICE in Australia, including sons of Tapit, In the past five years 139 stakes A Scat Daddy, Galileo, Deep Impact, American winning fillies or mares have been $1.5 m + Dubawi and Invincible Spirit. Pharoah sold at auction immediately after SOLD TO And many of those were available HONG KONG US their careers for an average at a fraction of their northern $110,000 price of A$544,000, hemisphere fee. OVERSEAS SERVICE FEE compared to an average A yearling price of $66,000 A$117,000. AUSTRALIAN SERVICE FEE Prince of Sussex A$145,000 Harry PURCHASE PRICE Angel A £20,000 $1.5 m + OVERSEAS SERVICE FEE SOLD TO HONG KONG A$22,000 AUSTRALIAN SERVICE FEE 12 13 GROUP ONE WINNERS Access To The Best OFFERED FOR SALE PRIOR TO WIN 2019 In Australia the vast majority of breeders are sellers, so “You go to Australia and you % there is a big pool of horses can walk into the ring and at all levels of the market. know you are getting access to 71 And this means more top class the very best bloodlines that Australia horses go through a sales ring than are available there. Up here almost any jurisdiction in the world. (Europe), you have incredible % In 2019 alone 71% of all Group One winners were offered for breeding operations that are auction before their win - this 35 compares to just 35% in Europe. collectors, not sellers.” Europe The majority of elite colts are also Hubie de Burgh, Leading available to buy. Since 2013, nine Bloodstock Agent of the 10 most expensive first-season sires in Australia have been offered for sale as a yearling. “In Europe, most of the best yearlings are in private hands and are kept to race by bigger breeders. In Australia, you get a much better opportunity to buy a horse that can end up being a champion or possibly a stallion.” David Redvers, Qatar Racing Winx was the highest or joint Jameka, closely highest rated horse related to a Group One in the world for 18 Guineas winner, was consecutive months a A$130,000 yearling. from January After winning almost 2018 A$5 million and three Group Ones, she made A$2.6 million as a breeding prospect.