Spendthrift Farm AUS Gone!

[Joe Bloggs]

A huge operation in the USA GONE here in Oz, obviously we will learn more during the next few days, however it's huge news in light of the sales season about to begin. Their stallion roster and shuttle stallions were possibly not the 'right' horses for us, whoever advised them have questions to answer. A lovely property, the old Yallambee Stud, hopefully out of the ashes .......

See; www.paulickreport.com

[Chief Stipe]

Spendthrift Farm To Discontinue Australian Operations

by Press Release | 12.29.2021 | 10:17am

 

 

 

 

Spendthrift Farm is discontinuing its operations in Australia and putting its Spendthrift Australia property up for sale.

“This has been a very difficult decision for us. We have a wonderful team in Australia and will be working closely with them to help make this as smooth a transition for them as possible,” said Eric Gustavson, owner of Spendthrift. “The Thoroughbred industry in Australia is one of the finest in the world, and we have great respect for the job they've done in building it. We've been fortunate to meet so many amazing people there and have very much enjoyed the experience.”

Spendthrift Australia is located just outside of Melbourne on 600 acres. Its current colonial stallion roster is comprised of Overshare, Swear, Gold Standard and Dirty Work, and the farm is also residence to a broodmare band of about 50 mares along with their foals and yearlings.

“We want to thank all of our staff in Australia for their hard work over the years,” said Ned Toffey, Spendthrift's U.S. general manager. “We have made it a point at Spendthrift to branch out and try new things. Naturally, not every idea is going to work but I will guarantee you we will continue to take that approach.”

[holy ravioli]

Pretty average stallion roster.

[mumbles]

Never heard of any of them.

[Huey]

5 hours ago, holy ravioli said:

Pretty average stallion roster.

Perhaps by Aus stallion standards that could be the case, probably more for the breed to race crowd over there , I'd venture to say any of their sires would be well placed at stud in this country.

[holy ravioli]

1 hour ago, Huey said:

Perhaps by Aus stallion standards that could be the case, probably more for the breed to race crowd over there , I'd venture to say any of their sires would be well placed at stud in this country.

maybe ,maybe not...bumbles has never heard of any of ...them,and I imagine a number of Kiwis haven't either.

[Chief Stipe]

I do remember Dirty Work - formed part of a nice multi when he won the Schillaci.  A good looking son of Written Tycoon.  Also has some of my favourite Australasian bloodlines with Bletchingly being part of his pedigree.  He broke the track record for 1100m when winning his maiden at Kensington.  He ran some solid placings against a generation of top sprinters.  Not sure I'd spend $20k on a service to him though.

[Chief Stipe]

22 hours ago, holy ravioli said:

Pretty average stallion roster.

I wouldn't call Omaha Beach - "pretty average".  One of the top 3yr old's of his year.  From the Danzig line of sires out of a USA Broodmare of the year.  Won three Group 1's, 5 wins from 10 starts.  4 seconds and a third - all but one of those as a two year old.  Second in the Breeders Cup Mile.  Won from 1200m out to 1800m.  Was favourite for the Kentucky Derby but had a breathing issue and scratched.  Had a minor operation and came back in winning form.

I understand he was well patronised at stud in Australia.

[Joe Bloggs]

Here is a very good synopsis by a learned person, it tells a worrying story;

I think the most important factor in Spendthrift Australia closing is this:  https://www.spendthrift.com.au/b-wayne-hughes-passes-away/

 

Combine that with the fact that by everything I can piece together, Spendthrift Australia had to be bleeding away money in a death by a thousand cuts.  The Breed Secure incentive they had probably cost them a half a million in 4 years in lost revenue from stud fees.  Overshare, Dirty Work, Swear, and Gold Standard were purchased as yearlings for a total of $2M and the only one to earn more on the track than his sales price was Gold Standard (IMO this has a lot to do with why Dirty Work's advertised fee is as high as it is).  They shelled out about $600K for yearlings at 2021 Inglis Easter, they shelled out about $1.75M for mares at Gold Coast in 2020, $3.66M at 2020 Magic Millions, and goodness only knows how much money they spent on this: https://www.spendthrift.com.au/infrastructure-investment/  ;

 

Those mares were destined for Spendthrift stallions, the fillies in the Magic Millions yearling lot were eventually destined for Spendthrift stallions, and that's kind of where I was going with, you can't make money when you're F!'ing yourself.  The two most expensive mares in that lot ($600K and $450K) were being sent to...drumroll please...a stallion standing for $22,000.  

 

Since Hughes died right before the Australian breeding season and Omaha Beach and Vino Rosso were already down there, it would make financial sense to keep the shed open for long enough to recoup the cost of sending them there and back before turning out the lights and selling.  If it made financial sense for Hughes' heirs to keep the farm open--meaning, they had a stallion roster that was making money and whose foals were winning good races--the farm would probably stay open.  As it is, though, the heirs will make more money cutting their losses, selling the farm itself (which will probably break-even if not be a small profit), take the best mares to the USA, and sell the rest.

[Joe Bloggs]

In 2015 they kicked off in Oz, these stats are damning;

Can The Man: Group1 winner in the USA. Served just 11 mares

Hampton Court: Group1 winner in Oz: Served just 22 mares

Jimmy Creed: Group 1 winner in the USA: Served just 22 mares

Warrior's Reward:Group1 winner in the USA Served just 24 mares

 

[Joe Bloggs]

Just now, Joe Bloggs said:

In 2015 they kicked off in Oz, these stats are damning;

Can The Man: Group1 winner in the USA. Served just 11 mares

Hampton Court: Group1 winner in Oz: Served just 22 mares

Jimmy Creed: Group 1 winner in the USA: Served just 22 mares

Warrior's Reward:Group1 winner in the USA Served just 24 mares

 

Of these, Can the Man is goodness knows where, Hampton Court is dead, Jimmy Creed is filling a breed-to-race niche in North America, and Warrior's Reward is standing private-treaty in the state of Pennsylvania.  Warrior's Reward seems to be the heir apparent at a small farm where the flagship stallion is obscurely-bred, tough as teak, and 21 years old

[Chief Stipe]

2 hours ago, Joe Bloggs said:

Here is a very good synopsis by a learned person, it tells a worrying story

Why is it a "worrying story"?  Over the years there have been many many similar stories in the Bloodstock Breeding business.

Whoever wrote the article is embellishing a tad.  For example Dirty Work - purchased for $800k, won 600K on the track.  Taking into consideration tax write off's hardly a substantial loss.  Still worth a few quid as a stallion.

Also the "investment" in the property at Macedon shouldn't be a loss.

[Huey]

2 hours ago, Joe Bloggs said:

In 2015 they kicked off in Oz, these stats are damning;

Can The Man: Group1 winner in the USA. Served just 11 mares

Hampton Court: Group1 winner in Oz: Served just 22 mares

Jimmy Creed: Group 1 winner in the USA: Served just 22 mares

Warrior's Reward:Group1 winner in the USA Served just 24 mares

 

TBF none of these are really what the Aus market seems to push for I.e. American Breds & a derby winner.

It's a shame as the next ones they have seem to be along the right lines to get mares, Aus form & sons of Sebring , IAV & Written Tycoon any of which would be great to see stand in NZ, the sort of sires at good fees to get Breeders back in the frame breeding a racehorse 

[holy ravioli]

3 hours ago, Chief Stipe said:

I wouldn't call Omaha Beach - "pretty average".  One of the top 3yr old's of his year.  From the Danzig line of sires out of a USA Broodmare of the year.  Won three Group 1's, 5 wins from 10 starts.  4 seconds and a third - all but one of those as a two year old.  Second in the Breeders Cup Mile.  Won from 1200m out to 1800m.  Was favourite for the Kentucky Derby but had a breathing issue and scratched.  Had a minor operation and came back in winning form.

I understand he was well patronised at stud in Australia.

Good record,a dirt tracker...not sure that is an appealing proposition.

[Chief Stipe]

27 minutes ago, holy ravioli said:

Good record,a dirt tracker...not sure that is an appealing proposition.

His sire line is dominated by turf winners internationally.  

[Joe Bloggs]

3 hours ago, Chief Stipe said:

Why is it a "worrying story"?  Over the years there have been many many similar stories in the Bloodstock Breeding business.

Whoever wrote the article is embellishing a tad.  For example Dirty Work - purchased for $800k, won 600K on the track.  Taking into consideration tax write off's hardly a substantial loss.  Still worth a few quid as a stallion.

Also the "investment" in the property at Macedon shouldn't be a loss.

I think it's worrying for an International breeding operation to cease just prior to our selling season, if it was Newgate, Coolmore, or Stonestreet etc it would be much bigger news, and I think next year we will see a few more disappear into the sunset.

[Joe Bloggs]

2 hours ago, Huey said:

TBF none of these are really what the Aus market seems to push for I.e. American Breds & a derby winner.

It's a shame as the next ones they have seem to be along the right lines to get mares, Aus form & sons of Sebring , IAV & Written Tycoon any of which would be great to see stand in NZ, the sort of sires at good fees to get Breeders back in the frame breeding a racehorse 

Huey, I shake my head when I see sires of the calibre or Showcasing and Iffraaj neglected by know-alls closely associated with the Cartel....a few bloodstock agents to boot.......by the time they twigged it was too late, Iffraaj was standing for 15K, in England 55,000 pound, for Gods sake.......he got the two champion fillies and Wootton Bassett in his first crop, Showcasing was standing for K7 and in England he's now at a fee of 45,000 pound.......no wonder they don't shuttle anymore, the repatriation of funds make it untenable.......it makes no sense anymore Huey, the more you study it, the sillier it gets.

[Chief Stipe]

17 minutes ago, Joe Bloggs said:

I think it's worrying for an International breeding operation to cease just prior to our selling season, if it was Newgate, Coolmore, or Stonestreet etc it would be much bigger news, and I think next year we will see a few more disappear into the sunset.

Why would more disappear?  The prize money and opportunities in OZ is going ballistic.  Or is the market saturated with too many stallions and Studs in a certain sector of the market?

[Chief Stipe]

7 minutes ago, Joe Bloggs said:

Huey, I shake my head when I see sires of the calibre or Showcasing and Iffraaj neglected by know-alls closely associated with the Cartel....a few bloodstock agents to boot.......by the time they twigged it was too late, Iffraaj was standing for 15K, in England 55,000 pound, for Gods sake.......he got the two champion fillies and Wootton Bassett in his first crop, Showcasing was standing for K7 and in England he's now at a fee of 45,000 pound.......no wonder they don't shuttle anymore, the repatriation of funds make it untenable.......it makes no sense anymore Huey, the more you study it, the sillier it gets.

But English racing and their tracks are quite different to OZ which is where the market is down under.  Who wants to breed slow track Derby winners?

[Joe Bloggs]

I'm generalising, however, Iffraaj got Rizeena, champion 2yo filly, and Chriselliam who won the Breeders Cup Juvenile. He also got Hot Streak, great sprinter over quite a few years and now standing at Stud. Lets not forget Gingernuts, so for sheer versatility Iffraaj is more than proven.

 Showcasing got Advertise ! Gr1 winning champion sprinter in Europe and the UK........and God knows how many very very good horses over middle distance. The best horse in Australia [potentially] last year was Bob Peters lovely horse that bowed a tendon in MEL just prior to the Carnival......

[Chief Stipe]

11 minutes ago, Joe Bloggs said:

I'm generalising, however, Iffraaj got Rizeena, champion 2yo filly, and Chriselliam who won the Breeders Cup Juvenile. He also got Hot Streak, great sprinter over quite a few years and now standing at Stud. Lets not forget Gingernuts, so for sheer versatility Iffraaj is more than proven.

 Showcasing got Advertise ! Gr1 winning champion sprinter in Europe and the UK........and God knows how many very very good horses over middle distance. The best horse in Australia [potentially] last year was Bob Peters lovely horse that bowed a tendon in MEL just prior to the Carnival......

When was the last European bred stallion that really clicked down under?

[Joe Bloggs]

52 minutes ago, Chief Stipe said:

Why would more disappear?  The prize money and opportunities in OZ is going ballistic.  Or is the market saturated with too many stallions and Studs in a certain sector of the market?

Absolutely !!!

[Joe Bloggs]

15 minutes ago, Chief Stipe said:

When was the last European bred stallion that really clicked down under?

You've actually got a point, however, as I pointed out above, the know alls shied away from those two, and missed a great opportunity, NZ doesn't have the money to bring in top line stallions, the prize money is so poor and the black type so devalued, over here we are breeding so many good colts that are whisked off to stud too early the market is saturated.....these suited up 20 and 30 somethings with little life experience, and many are rich men sons are becoming commodity traders, not bloodstock agents per se and the money being shelled out for yearlings is laughable, it's a house of cards, who the hell pays 150K for stallion services? only traders, breeding for the sale ring, not the racetrack........it's no different than Wall St, NASDAQ, etc etc.....

[Chief Stipe]

Just now, Joe Bloggs said:

You've actually got a point, however, as I pointed out above, the know alls shied away from those two, and missed a great opportunity, NZ doesn't have the money to bring in top line stallions, the prize money is so poor and the black type so devalued, over here we are breeding so many good colts that are whisked off to stud too early the market is saturated.....these suited up 20 and 30 somethings with little life experience, and many are rich men sons are becoming commodity traders, not bloodstock agents per se and the money being shelled out for yearlings is laughable, it's a house of cards, who the hell pays 150K for stallion services? only traders, breeding for the sale ring, not the racetrack........it's no different than Wall St, NASDAQ, etc etc.....

You have a point however the prize money on offer in OZ is astronomical.  Hell if I was younger I'd say to @Freda let's get a float full of horses and pillage the bush and country race meetings in OZ.  Would beat trying to find an average Jockey to ride your above NZ average horse on a shyte track for SFA stake money.

[Joe Bloggs]

Patrick Payne is doing just that, a bloke from Masterton is sending him horses, Michelin won about 150k [couldn't keep up in NZ] Sig Positano won about 100k already over here, and I see he's just sent him that bloody good horse Trosette, so God willing he'll win heaps over here........get on the Queue Chief, it's a procession.......