Magic Millions proves that the sales market is still going strong
Syndicates have reported continued insatiable demand for shares in racehorses, following the sale of Gold Coast affluent Magic Millions, giving confidence to the middle-market power behind racehorse ownership in Australia.
Some leading industry players anticipated an element of fear within the market leading up to the season-opening auction, amid suggestions of a contracting economy and rising interest rates, factors likely to put pressure on the disposable income of Australian households – in contrast to the relentless demand for racehorse ownership during the Covid pandemic. -19.
However, the record-breaking Magic Millions sale challenged any such pessimism within the vampire industry, as unprecedented combined and average figures were set on the Gold Coast.
While strength at the top end of the market was out there for all to see, yielding four $2 million (AU) contracts for the first time at Magic Millions, the middle market also played its part, with traders splashing around in excess. A$24 million via a seven-day sale.
And their confidence in the market appears justified, with one trader reporting that shares in all 10 of their horses bought last week have already sold 70 percent, less than 48 hours after the completion of the Magic Millions sale on Jan. 16. .
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Victoria Bennett Racing distributors spent A$2,465,000 (US$1,722,936) during the Magic Millions sale, breaking the record price paid for a year at least four times, as the process secured A$400,000 Snitzel ($279,584 USD) Filly, along with $370,000 AUD ($258,615 USD) Filly by Zoostar Jointly with Gai Waterhouse and Adrian Bott AUD$330,000 ($230,657 USD) Extreme check the colt with Ciaron Maher, and an A$310,000 (US$216,678) colt from the same Newgate stallion.
“The market has been very strong. I think it’s the strongest market we’ve ever been in,” said Nathan Bennett, Principal of Bennett Racing.
“All the nice horses were making good money, and everything in Australia is going up (in terms of price). An old $150,000 horse is now $250,000, so if you don’t reinstate yourself, you won’t be able to buy those horses.
Sales have been brisk at the annual Magic Millions Gold Coast sale
“The turnout for the stock has been fantastic. Of the ten horses we bought, about 70 percent are sold. Some are pretty done, others have a little way to go, but 70 percent of all ten are in good shape to be in.”
Syndicate spending with record purchases was not an uncommon feature in the annual Gold Coast sale. In addition to Bennett Racing’s new standard, Proven Thoroughbreds’ Jamie Walter went for A$470,000 ($328,511 USD) for a colt of deep fieldsurpassing the A$450,000 Walter paid in 2021 for the Proven award-winning Stroll.
Last week’s Prime Thoroughbreds from Joe O’Neill and Triple Crown Syndications went into the second-highest price paid for a single year. Darby Racing paid A$1,705,000 (US$1,191,727) for eight years; While Star Thoroughbreds, the leading buyer by aggregation among collaborators with 11 purchases raising A$2.9 million (US$2,026,984), paid the top price of A$410,000 (US$286,574) for a foal by I am invincible .
Dynamic Syndications was also active in the Magic Millions sale, buying 13 horses for a total of A$2,040,000 (US$1,425,878).
Among that lot was a brother by three quarters of a capitalist, A.J Pierre The colt is from a half-sister to Fastnet Rock, and a justify The colt from a half-sister to a Group 1 finish winner.
Dynamic Director Adam Watt has spoken of how he believes the mid-market offers opportunity on the Gold Coast, as this section of the market is “not as strong” as he had expected.
“We’ve outgrown the quality of the horses we wanted, so we were happy to be able to walk away from what we did,” said Adam Watt of Dynamic Syndications. “I think the market right now is a two-speed market, and I think that’s probably supported by averages and selling averages.
“Big stallion funds go to unprecedented heights, but I thought for the mid-market there was incredible value for money. We walked away with three Snitzels with two of them being proper black mares.
“We thought some of these horses were going to go for a lot more than we were able to get. I thought they would exceed our values well and really exceed our values for what we could go for with our budgets.”
Watt said Dynamic, which sold all of the horse shares purchased last year in November, was “ahead” than it was 12 months ago in terms of shares of stock from its customers.
“It was unbelievable to buy the shares,” he said. “People are still looking for quality. It doesn’t matter what environment you live in, economically speaking, people will still want quality.
“They still want to go out and buy BMWs and look at nice homes, and the blood market is exactly the same. When you give people the chance to race three-quarters brothers to capitalists and horses from half-ties to Fastnet rock…we went out there and shopped hard and our customers responded in kind.”