As an owner in horse racing partnerships one makes the occasional wager every now and then. One of the most popular wagers in the industry is the Pick 6 which gives horse players the chance at a life changing score. The first Pick 6 was introduced at the now defunct Hollywood Park in 1980. Since then many tracks have taken on the wager and have been successful in doing so. The traditional Pick 6 is a $2 base wager and will payout the total pool should the sequence be hit to the number of tickets with that combination. Selecting six winners in a row is a challenge in itself and the base price of $2 can make the bet both enticing and investment prohibitive.
Topics: Opinion Piece
In the aftermath of the Preakness Stakes last weekend, I was expecting that my non-racing friends and family would ask me about Exaggerator, the horse who finally defeated his rival, the undefeated Kentucky Derby winner Nyquist, in a thrilling race on Saturday afternoon. Who owns him? Is he part of a thoroughbred partnership? Much to my dismay, my post-Preakness conversations were not about the efforts of Exaggerator and Nyquist.
Rather, they were focused on Homeboykris and Pramedya, two horses who died earlier in the day. I had seen social media quickly blow up with links to articles about these deaths on Saturday afternoon, but I was not expecting them to be the lead story of the weekend. A common theme among the sources that was noted by myself and fellow horse racing fans was that these news outlets ignore horse racing 362 days a year (with the exceptions being the dates of the Triple Crown races). Thus, their limited “coverage” is skewed at best and wrong at worst.
We cannot help but become frustrated when my social media feeds are swarmed with comments from anti-racing people who come out of the woodwork whenever the mainstream media decides to shine a spotlight on the darkest parts of Thoroughbred racing. Unfortunately, racing suffers immensely from a lack of central leadership, and this deficiency often prevents the sport from standing up for itself when necessary. However, this does not mean that racing fans, those who are most frequently questioned about the sport that we love so much, cannot stand up for it and educate our friends and family who are willing to listen.
When a Thoroughbred dies of a heart attack, the casual observer needs to understand that the horse was not drugged, raced, or abused into cardiac arrest. He or she must realize that “drugs” should not be the scapegoat every time a horse suffers a catastrophic injury. They need to know that strict testing programs are in place to catch and punish anyone who tries to cheat and/or compromise a horse’s safety. Those who hate horse racing claim that people within the industry are apathetic toward equine fatalities. We wonder how many of these people have seen the outpouring of emotions at the track and on social media when a horse dies on the racetrack.
If the mainstream media will not tell the masses every part of racing’s story, then the knowledgeable racing fan must teach the casual observer that a riding crop/whip/stick is a tool, not a weapon. Like any tool, it is effective when used correctly. When it is misused, criticism of the user, not the whip itself, is warranted. If PETA and other animal rights groups will not acknowledge the countless organizations that exist to rehome ex-racehorses, then it is our duty as people who love racing and know about racing to debunk the ridiculous myth that all “slow” horses are sent to slaughter.
At first, we hated that tragedy has dominated my conversations about Preakness weekend. However, I have taken these discussions as an opportunity to teach those who would otherwise be left to form their opinions about horse racing from the warped portrait painted by mainstream media. I hope that people ask me the tough questions that mainstream media sources choose not to answer unless it will result in increased viewership and/or readership. I hope all passionate fans join me in embracing this questioning. The horse racing industry is far from perfect, but we should be the ones telling our story.
Topics: Opinion Piece
In late fall, horse racing publications are dominated by articles announcing that many of the male and female equine stars of the racing world have been retired. If the horse is an intact male, he will be retired to begin stud duties. If the horse is a filly or mare, she will trade racing for motherhood and become a broodmare (a female horse used for breeding). This sounds simple enough, but the transition from athlete to parent often involves significant planning and considerable amounts of money.
For a filly or mare, her retirement destination is not always obvious. If a racehorse owner also breeds horses on his or her own farm, it is likely that his or her fillies/mares will retire to his or her farm, which is where the mare will live for the duration of her pregnancies and while nursing her foals. It is also possible for horse owners to breed horses without owning their own farms. In this case, they will pay to board their mares at another farm. For example, commercial farms such as Claiborne, Lane’s End, and Hill ’n Dale keep their own horses on their farms in addition to boarding horses owned by clients.
However, not all people who race horses, breed horses, and not all people who race and breed horses retain all of their horses for breeding purposes. In this case, broodmare prospects are sold privately or at public auctions. Two of the most famous sales for broodmare prospects are the Keeneland November Breeding Stock Sale and the Fasig-Tipton-Tipton November Sale. Two-time champion Ashado was consigned to the Keeneland Sale, where she sold for $9 million, while Havre De Grace, the 2011 Horse of the Year, sold for $10 million in the Fasig-Tipton November Sale. A filly or mare’s retirement plans are determined by her sole owner or if owned by one of the horse racing partnerships, the managing partner.
When it comes to successful colts, securing a stud deal is almost always more lucrative than the horse’s total racetrack earnings. A colt may have his retirement plans determined as early as his two-year-old-year or as late as at the conclusion of his racing career. Even though many racehorse owners do own farms, most farms are not home to breeding stallions. Thus, the majority of the top stallions in the United States are kept at farms who specialize in standing stallions at stud.
For the top farms, a colt usually needs to win at least one Grade I race (Grade Is are the most prestigious races) to become a sought-after stallion prospect. Once a colt wins a Grade I, his owner’s phone will start ringing with offers from stud farms. Stud farms aim to purchase the breeding rights of top colts and often divide the ownership into a syndicate (think horse racing partnerships) of shares upon retirement. Although the stallion will live at one farm, he may end up with dozens of new owners who own one or more breeding shares. These shares entitle the owner to a range of benefits including a share of revenue from the horse’s stud fees and free breedings to the horse with the shareholder’s own broodmares.
The colt’s owner may choose to sell all of the horse when he retires, but most retain some shares so that they can continue to profit from the horse after he leaves the racetrack. Secretariat made headlines in 1973 when he was syndicated for a record $6.08 million...BEFORE he won the Triple Crown. Fusaichi Pegasus, winner of the 2000 Kentucky Derby, was syndicated for about $50 million!
Regardless of a top horse’s gender, its breeding future is carefully planned so that it is afforded the best opportunity for success and its owners on the racetrack or in retirement can optimize their chances for profitability.
Topics: Horse Ownership Tips
The topic of takeout in horse racing as is one that is highly contentious in the industry for the horse racing customer. The customer’s understanding of this concept varies as much as the condition books for tracks across the country. The casual fan may not even be aware of what takeout is while the more seasoned player uses it as a map of where they choose to play. Simply put, takeout is the fee the racetrack and horse owners charge to put on the racing performance. Las Vegas Sports Books and bookies have a similar fee. They call it “the juice”.
In horse racing the “juice” is generally 20%. This fee is a percentage of the handle wagered on the race card for the day. In other words, if $100,000 is placed to “win” on a race, the house (ie racetrack, and horse owners) removes $20,000 with $80,000 split by all the gamblers with the winning ticket. The actual percentage of each bet varies by racing jurisdiction. A great website for horse players is Horseplayers Association of North America. You can find the takeout rates in each jurisdiction there.
Topics: Opinion Piece
Prior to 1937 race tracks placed 3 stewards at the finish line so when two+ horses crossed the wire together, they would look at each other and vote on who won. Obviously, this inexact science created arguments, and controversy, especially in big money races. Can you imagine today if a million dollar Pick 6 was decided by three judges?
This all changed in 1937 when Bing Crosby unveiled the Del Mar Thoroughbred Club. Bing wanted to do things differently. We know he enlisted all of his Hollywood boys to add a little panache (and of course help finance and build the race track) to the new race meeting. He also did something that changed horse racing forever. He brought in Paramount Pictures motion picture engineer Lorenzo Del Riccio, who had just recently created a new circular flow camera. This new device started the film when an object - in this case a horse’s nose - hit a specific point and began filming in the opposite direction. The famous instrument was used for the first time on opening day at Del Mar in 1937.
As you can imagine this was revolutionary to the world of thoroughbred horse racing and tracks across the country called Del Riccio who was more than willing to sell them the newly patented camera. Hollywood lore has it that when Del Riccio created the camera he was under an exclusive contract with Paramount Pictures and the story goes Paramount began chasing him from town to town until a deal was reached.
How it works is technical. The circular flow camera uses a single vertical slit instead of a shutter; a strip of film moves horizontally across the fine vertical opening located in the focal plane. This limits the field of vision to no more than a few inches, the restricted field being aligned with the vertical line on the winning post on which the lens was focused. The strip film moved across the slit in the opposite direction to the race and at substantially the same speed as the rate of movement of the image of the horses as it passed the finishing line. This kept the image of the horses stationary with respect to the film. As soon as the first horse started to pass over the line, the camera began to record its image on the moving film from the nose backwards along the length of the body in succession. This produced a strip photographic record of the horses as they passed the vertical plane/winning post. Film was advanced continuously at a pace equivalent to the average speed of a racing horse, resulting in distortions of length but still preserving the order of finishers.
Improvements were developed to Del Ricco’s invention in 1948 by Australian Bertram Pearl whose system incorporated a mirror and neon-pulse time signature in the winning-post which would provide a precisely aligned image in which both sides of the horses could be viewed, and on which the neon left a set of stripes at 100th/sec intervals for accurate timing. If the reflected image of the horses aligned vertically exactly with the foreground image, it was proof that the camera was not viewing the finish-line at an angle (and therefore incorrectly recording the horses' relative positions). Pearl’s partner was his friend, society portraitist Athol Shmith and his contribution was to formulate means to speed the processing of the strip of negative down to 55 seconds and then to a rapid 35 seconds.
Although digital cameras are now used for photo finishes, the technology developed by Del Riccio was instrumental in reassuring gamblers they were betting on fair outcomes, and helped bring horse racing maintain its popularity in American culture.
Topics: Opinion Piece
On Sunday, July 3, 1977 my grandfather picked us up from my mom’s house and we started our regular drive to Hollywood Park. I was 8. My sister Emily was 5. We were in our Sunday best. All dressed up because we were fortunate enough to sit up in the Director’s Room with all the Hollywood big wigs. Plus, we had to look good for self proclaimed style-master, Grandma Rudee. I was most looking forward to the delicious roast beef (of which I often had seconds and thirds from the buffet) and I had spent most of the night before going over the Racing Form to get my picks ready. Gramps gave us each $10 to bet with. My $10 was generally spent on the daily double while Em's lasted all day. She even offered to pay Gramps back the original $10 bucks if she still had it at the end of the day. I usually went back for $10 more after I had lost the first race.
Topics: Opinion Piece
As anticipated, the OBS March ended in fine fashion today with another seven figure buy pushing the sale just south of the 2015 installment.Following an uptick day of trading, OBS reported an overall two-day gross of $51,650,000 versus $55,432,000 in 2015 for the same 325 horses sold. The two-day average fell from $170,560 to $158,923. The RNA rate was 25%, compared with 23% a year ago. Overall, my thoughts are similar to yesterday. The middle market is not what it used to be at these sales with the big buyers competing for the same limited number of high end horses and strangely not wanting to dial back to the next tier horse. With the bulk of Kentucky Derby winners (and countless stakes horses) sold in the mid-range level, it surprises me that the best and brightest take a herd like mentality to horse trading.
As for LRF, Day 2 was productive. Before we begin, I must digress for a minute. In 2013, our horse Egg Drop won three consecutive stakes races, including the Grade I Matriarch (the last GI at Hollywood Park). Eggy was sold in 2014 in foal to Tapit for $1.9m to John Malone’s Bridlewood Farm. Early this morning, we were invited to pay a visit to the historic farm where we saw Eggy, who is literally about to foal any second (again to Tapit). We also met her first son, aptly named Won Ton. That’s her (assistant at the time) trainer Phil D’Amato and funny enough, as soon as she saw Phil her ears pricked like when she was in training. We had a tremendous time. It was a nice breath of fresh air during the middle of the sales storm. It reminded us why this sport is so beautiful.
Back to the sale. Our short list got shorter early in the day when our vets scratched off two horses….leaving us with four. We went hard for Hip #331, a Tiz Wonderful colt, but we stopped at $200k and lost him when he went for $210k to a co-ownership that includes one of the biggest owners in the game - B. Wayne Hughes (Beholder). So, we felt good being on the “right” horse and had no regrets not spending another $5k since when B. Wayne Hughes wants a horse he usually gets it.
At this point, with only three horses left, we re-visited Hip #60 which if you recall was bought back by his owner yesterday for $70k. The horse was still for sale - which gave us relief that we may walk away with a quality horse we wanted all along. Still, we didn’t pull the trigger again!
Someone might ask, clearly you don’t want Hip #60 since it is still technically #4 on your list. Not true. We just wanted to play out our options. My favorite story to tell is when we buy multiple horses and everyone inevitably asks which one we like best/least. In almost every case the horse we place as the “last seed" ALWAYS ends up being the best. If we are still considering a horse at this stage, we think very highly of it.
Next up was Hip #524 - a super Pioneerof the Nile Colt who worked in a fast 10.1. We heard the reserve was going to be around $250k which placed him at the high end of our budget for the horse but we kept our spirits up. We raised our hand a couple of times but then the bidding flew past $250k. Then $350k. Our thoroughbred syndicate competitor Eclipse Thoroughbreds and Kentucky Derby winning bloodstock agent (I’ll Have Another) Dennis O’Neill were hooked up against each other with Aron winning at $450k. Before you ask, yes it sucks losing a horse to a competitor, but we placed a different value and stuck to our guns.
We didn’t have to wait long for our next horse - Hip #535 - a really nice Union Rags Filly out of an A.P. Indy mare. The reserve was $199k and we felt we had a decent chance at getting the horse in the $200k range. That feeling went away quickly as the horse jumped past $200k…on its way to $300k and sold to top bloodstock agent Donato Lanni.
With one horse left on our list, Team LRF had a serious discussion about Hip #60. This led to another visit of the colt….and a purchase. By Congrats out of an unraced Kingmambo dam what we liked most about this horse was his quick breeze and the way he looked effortlessly doing it. It also doesn’t hurt to have a nice pedigree with the dam being a half sister to Hard Spun. We also hope this horse is ready to run early. We look forward to getting him to So Cal for a Del Mar debut.
Last, but not least, we made a run at Hip #597 and consistent with our sale we got outbid drastically by our friends at Live Oak Plantation ($375k).
Leaving the sale with one nice horse is not ideal but very productive. We spend countless dollars and time at each sale whether we buy something or not. It’s our operating cost. We can’t factor that into the number we buy since in the end each horse we purchase must meet a high standard and inevitably perform on the racetrack. If it doesn't, your brand suffers. I feel good knowing we try to present the best product to our clients and the results recently reflect the hard work.
That's it for the 2016 OBS March Sale. I hope you enjoyed these blogs. We liked sharing our thoughts with you. If you have any questions, just email us.
Topics: Opinion Piece
Thank you for all the nice comments about the sales blog. The sales auction is a huge part of the industry and your excitement to learn more about the process is nice to see. For thoroughbred partnerships, these sales are the main settings for stocking up the barn for the coming year. Buying the right horse at the right price is what your partners demand and either you deliver, or they will find someone else who will.
Day 1 of the OBS March sale is in the books. Overall, thus far, the sale is a tad behind last year. OBS reported 160 juveniles sold for a total $25,718,500, down 16.2% compared with $30,704,000 total for 169 head for the first session in 2015. The average fell 11.5% from $181,680 to $160,741; this year’s median was $115,000, compared with $120,000 a year ago. The buyback percentage was 28.9%; it was 20.6% in 2015. Since it’s a two day sale with a random draw determining order, we will save our market analysis until the full results are in.
What we did see was a continued trend of the big buyers (that's Bob Baffert trying to be stealth) purchasing the top tier horses leaving the middle market flat. Being a mid-ranger, buying a horse in this market is extremely tough. Consignors place home run reserves on their horses and when they fall outside the big buyers, instead of selling to us, they bring them home for another day. I never judge a seller if they place a high reserve. It’s their horse, they can sell it for whatever they want. If I really like a horse, after learning that the horse is RNA (ie reserve not met) I may approach the consignor afterwards and make an offer at our price. Sometimes the seller has a change of heart and sometimes they don’t. You can see which horses were sold this way (ie “immediately after the sale”) on the OBS site. They are marked PS. One of LRF’s best horses, Bellamentary, was purchased last year under this set of circumstances. Thankfully, the reserve was not met that day.
Topics: Opinion Piece
The day before the two-year-old in training sale is when it all comes together for thoroughbred syndicates. You physically re-inspect horses. Review videos again. And again. Talk to people…and if you’re smart you’re not talking so much as listening. OBS March has 600 horses which is usually whittled down to about 30. Sometimes 10. Sometimes 50. Each buyer has their own “check the boxes”. With some sales you see many horses that fit your model. Great, you feel better you may get one. If you only see a few, chances are smaller. The most common misperception is you just find a few horses you love, bid and hopefully go home with your new purchases. In reality, you look at your notes - the pros and cons - funnel down to a select number of flaws you can “live with” and if the price is right, you buy. Every now and then a horse pops up that checks all the boxes and you fall madly in love. Most of the time, you’re grinding through hundreds of horses and swinging at the best pitch you see. I’ve seen too many horses “you love” never pan out while the ones you simply bought because they fit the model in nondescript ways later become stakes winners.
Topics: Opinion Piece
Welcome to the OBS March Sales Interactive Blog. We hope these next few writings help give insight into purchasing a two-year-old at auction.
The two day dale beings Tuesday, March 15th and the LRF team has been on the grounds all week looking at breeze videos and physically inspecting the more than 600 cataloged horses here in Ocala, FL. Unlike a yearling sale, horses breeze either one or two furlongs which gives buyers their first glimpse of each horses talent and potential. These are logged and available for viewing here.
Being one of the biggest and best sales, all the major buyers, including our competitor thoroughbred partnerships are here this week. And they are all looking for the same thing. A stakes quality racehorse.
Topics: Opinion Piece