Investors' Guide - Aushorse
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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
+
84 %
4 5
Unrivalled Riches GLOBAL
PRIZEMONEY
TRENDS
Australian prizemoney
10 YEAR CHANGE
growth has easily “If I was lucky enough to (2009 – 2018) Australia
outstripped every other be born again, I would move
Increase in prizemoney
nation in the last 10 years to Australia and start training
– soaring some 84%.
As well as a host of new races –
among them the A$14 million The
Everest and the A$5 million All-Star
there. It is the country of
the future for racing;
the prize money is fantastic,
+
54%
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
Luca Cumani,
RACES
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
22
provincial tracks minimum values are
A$22,000.
Incredibly, there are now 60 races +
10%
5
in Australia worth A$1 million or more,
60
which compares to just 22 of this value
across the whole of Europe.
+ % France 2019 EUROPE
2019
And owners contribute much less
4
- %
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. there are just
USA 22 races worth
AUSTRALIAN A$1 million
2016 RACES
2014
39
52
2018
28
“The prize money there has
just exploded and that’s the sign RACES
2017
45
of a well run and supported industry. RACES 2015
36
It’s supported by the fans, the breeders, 2012
the owners and the government.”
Ned Toffey, Spendthrift Farm
21
RACES
RACES RACES
RACES
100
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
of valuable state breeding In the past 10 years, every winner of the breed-shaping
some 22 races and A$12.7 million of
Blue Diamond Stakes, Golden Slipper, Caulfield Guineas, Golden
schemes and restricted prizemoney, with a A$10 million raceday
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
$1.1m
10 YEAR AVERAGE IN US$ (2010-2019)
$25,000 $26,000
USA Australia
Europe
$16,000 $17,000
$6,000 UK
$993k France
Ireland
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, Tom Ryan, SF Bloodstock at A$55,000 in his first
Australian Stud Book for Australian stallions & Bloodhorse
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
each year for well in excess of A$1
A
$10,000 Tycoon, through to the dominance
PURCHASE PRICE of Danehill, northern hemisphere
million. In 2018 some 238 horses bloodlines have helped shape the
were exported from Australia
to Hong Kong, along with 182 to
$1 m +
A Australian breed, with modern-day
greats More Than Ready, Medaglia
SOLD TO
Singapore, where sale prices are HONG KONG d’Oro and Street Cry creating their
slightly lower.
Extra Brut own legacies here.
For those racing fillies, there are also $100,000
A
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 American
winning fillies or mares have been $1.5 m +
A Scat Daddy, Galileo, Deep Impact,
Dubawi and Invincible Spirit. Pharoah
sold at auction immediately after
$110,000
SOLD TO
HONG KONG
And many of those were available US
their careers for an average at a fraction of their northern
price of A$544,000, hemisphere fee. OVERSEAS SERVICE FEE
compared to an average
yearling price of
A
$66,000
A$117,000. AUSTRALIAN
SERVICE FEE
Prince
of Sussex
A
$145,000 Harry
PURCHASE PRICE Angel
A
$1.5 m + £20,000
OVERSEAS SERVICE FEE
SOLD TO
HONG KONG A
$22,000
AUSTRALIAN
SERVICE FEE
12 13
Access To The Best GROUP ONE WINNERS
OFFERED FOR SALE PRIOR TO WIN
71 %
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
35
the very best bloodlines that Australia
%
And this means more top class
horses go through a sales ring than are available there. Up here
almost any jurisdiction in the world.
In 2019 alone 71% of all Group (Europe), you have incredible
One winners were offered for breeding operations that are
auction before their win - this
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.
14 15
The Highest Standards ROYAL ASCOT AUSTRALIAN-BRED WINNERS
When it comes to quality,
there is no doubt Australia’s “Australia produces a world
stars can match it with the class product. The best go
best in the world. everywhere in the world,
whether it be at Royal Ascot
Recent champion Winx dominated the Choisir Takeover Target Miss Andretti
world rankings for years, while a horse
with horses like Merchant King’s Stand Stakes King’s Stand Stakes King’s Stand Stakes
carrying the AUS suffix has been champion Navy, to Hong Kong. They 1st 2003 1st 2006 1st 2007
sprinter in eight of the past 10 years. Golden Jubilee Stakes
produce a fabulous product
At Royal Ascot Australian horses 1st 2003
regularly carry all before them; from the that can run fast anywhere.”
flag-bearer Choisir, back in 2003, through John Moynihan, Stonestreet Farm
to Takeover Target, Black Caviar and, most
recently, Merchant Navy, along with many
others.
And our racing is also recognised for its “When you consistently see
excellence. In 2018, 31 of the races ranked in Australian horses, there are so
the world’s top 100 were run in Australia. many with great bones, great
In Hong Kong half the equine population Haradasun Scenic Blast Starspangledbanner
is sourced from Down Under, with legends strength and they are really Queen Anne Stakes King’s Stand Stakes Golden Jubilee Stakes
1st 2008 1st 2009 1st 2010
Rapper Dragon, Able Friend, Sacred athletic horses. One after the
Kingdom and Silent Witness among the
other come out and you think,
many to have hailed from Australia.
‘Wow, this is really good.’
WORLD TOP 100 They just look like athletes.”
RACES BY NATION Hubie de Burgh, Leading
FOUR YEAR AVERAGE IFHA Bloodstock Agent
RANKINGS (2015-2018)
Black Caviar
20 Diamond
3 GB Jubilee Stakes
18
IRE
7 11
1st 2012
FR
USA JPN
10
HK
9
OTHERS
25
AUSTRALIA
Merchant
Navy
Diamond Jubilee Stakes
1st 2018
16 17
A Global Impact “We see the Australian
thoroughbred becoming
The influence of the more important globally.
Australian breeding industry “We went down and bought Australia breeds for speed,
is growing every year, Bounding who was a
precocity, soundness -
a fact highlighted by champion sprinter, we bred
these are things that every
Anthony van Dyck’s win her to Curlin, our stallion in
in the English Derby. jurisdiction in the world
America and the first foal
brought US$4.1 million. He needs more of.”
The son of Galileo was bred from
Australian mare Believe’N’Succeed, was the highest priced colt Tom Ryan, SF Bloodstock
herself a two year-old stakes winner in this recent September
over 1100 metres.
And this wasn’t the first time Coolmore sale. So it definitely can
had fused Australian and European work and you’ve seen “The reverse shuttling
pedigrees for an excellent result: their other Australian mares of Australian stallions, is
globetrotting champion Highland Reel, The US$4.1 million colt something we are going
along with his Group One winning full go to Europe and produce
out of Bounding to see a great deal more of.
brother, Cape Of Good Hope, are both extremely fast horses
sons of the Australian mare Hveger.
over there when mated to Australia is a very exciting
And it is not just on the track where hemisphere ‘reverse shuttlers’ are also
some of the best European becoming more popular, with young sires influence, particularly as
this influence is being felt. At this year’s
Keeneland September Sale the top priced stallions.” Zoustar and Astern booking out in the UK a speed influence, and this
colt was a US$4.1 million son of Curlin out and America, while stalwarts Exceed And will increase with more
of Australian mare Bounding. John Moynihan, Excel and Fastnet Rock continue to breed
In the breeding barns of the northern Stonestreet Farm books of over 100 mares in Europe. horses moving between
hemispheres.”
David Redvers, Qatar Bloodstock
Anthony van
Dyck , out of
Australian mare
Believe’N’Succeed,
wins the Epsom
Derby
18 19
A Unique Experience
In 1895 American writer Mark
“On our first trip to Australia,
Twain said of the Melbourne
when we saw the racing, the
Cup: “Nowhere in the world
sales, visited some farms
have I encountered a festival
and saw the stallions, the
of people that has such
enthusiasm that the public
a magnificent appeal to
has for racing - it’s a market
the whole nation.”
that we felt like we had to be
Over a century on and the Flemington a part of and it’s been a great
Carnival still astonishes. And now it has
been joined by the likes of The Everest opportunity for us.”
Carnival, the Magic Millions race day and Ned Toffey, Spendthrift Farm
The Championships at Randwick.
Any way you look at the numbers,
Australians love racing.
“You jump off the plane in
There are more than 101,000 who own
a share in a racehorse, meaning there are Australia and everyone is
more owners here than in Europe and Glamorous
smiling, both at the sales grounds racegoers
America combined.
Aussies bet an average of US$862 a and racetrack. Would I choose enjoying the
anywhere else in the world to Melbourne Cup
year on horses, compared to US$274 in
Carnival
the UK, US$179 in France and US$45 in race or go to a sale? I wouldn’t,
America. In fact, in 2018 more money WAGERING
was wagered on thoroughbred racing in I just love it.” ON HORSE RACING
Australia than the whole of the USA. Hubie de Burgh, Leading PER CAPITA (US$)
There are four cable television stations, Bloodstock Agent AVERAGE AMOUNT
and a free-to-air platform, that cover WAGERED ON HORSE RACING PER YEAR
every race on which there is betting,
$862
while the biggest selling newspaper
in each major city carries a minimum
of 12 pages of form every day.
Australia
$274 $179 $45
UK France USAAushorse is the marketing arm of the
Australian breeding industry.
We hope you enjoyed our guide and should you want any further
information on the Australian thoroughbred
industry please do not hesitate to get in touch.
Please reach us at
aushorse.com.au
Tom Reilly Lucas Liang Aleesha Phillips
Chief Executive Officer Asia Respresentative Communications Manager
T +61 2 9663 8581 Mandarin and Cantonese Speaker T +61 2 9663 8477
F +61 2 9663 8471 T +61 2 9963 8477 F +61 2 9663 8471
M +61 (0) 423 146 334 F +61 2 9963 8471 M +61 (0) 438 732 674
E tom@tbaus.com M +61 (0) 425 056 960 E aleesha@aushorse.net.au
W www.tbaus.com E lucas@aushorse.net.au
Cover Image: Mystic Journey winning the inaugural All Star Mile
There has never been a better time to invest in the Australian thoroughbred industry
Join us in 2020 at our yearling sales
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8–14
Magic Millions
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Inglis Magic Millions
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MARCH MARCH APRIL APRIL JUNE
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