Welcome to the Aushorse Investors’ Guide. We hope the information provided here gives you a strong insight into the thoroughbred industry in Australia.
As you’ll know, the last year has been challenging for everyone, and the thoroughbred industry has been impacted in many ways by COVID-19.
In Australia we have been more fortunate than most. With the strong support of the public and politicians, racing has continued throughout the pandemic; our prizemoney still leads the world and our sales continue to offer buyers unparalleled opportunity.
Put simply, no country gets behind racing and breeding like Australia.
Our strong foundations have allowed prizemoney to actually increase in 2020, while we offered 52 races worth A$1 million or more, compared to 29 in America and just seven across all of Europe this year.
We believe Australia remains the most vibrant and rewarding place to breed, trade or race a horse in the world.
Warm regards,
Tom Reilly
Whether it’s the number of million dollar races; the rewards for Group One winners; or the returns for victory in an average race, the strength of Australian prizemoney shows there is no more rewarding place to race than Australia.
And while many racing nations have slashed purses due to COVID-19, we have actually seen returns to owners increase in 2020.
This means there has been an 80% prizemoney growth over the past decade. The rewards are greatest for those horses born and sold locally, with some A$62 million available in lucrative breeders’ schemes and sales races.
These riches would not exist without Australia’s passionate embrace of racing. Our prizemoney is possible because of our fondness for a flutter: the typical Australian bets some US$820 a year on the sport. With all bookmakers paying a percentage of turnover back to racing, it ensures strong rewards for the owners and participants putting on the show.
In Australia it’s not just about the value of winning a major race, but the opportunity to buy a horse capable of doing so. Unlike other countries, our best breeders are sellers and year after year top horses pass their way through the sales ring before making their way to the winner’s enclosure.
In Australia our richest and most prestigious races - those that matter the most to the industry - are dominated by locally bred and raised horses.
In the last 10 years every running of the Blue Diamond, Golden Slipper, Sires’ Produce Stakes, Caulfield Guineas, Golden Rose and Coolmore Stud Stakes were all won by Australian-bred horses.
of all Australian-bred Group 1 winners in 2020,
78% of them were offered at auction as yearlings.
Compared with,
in USA
in Europe
But even if you don’t have a farm to retire a champion colt to, the market for potential stallions is ferociously competitive with a number of studs willing to bid on colts with valuations of tens of millions of dollars.
Incredibly, despite the enormous returns in prizemoney, the stallion market and the breeding barn, when it comes to buying an elite colt at the sales, Australia is far more affordable than the rest of the world.
And when these stallions go to stud, they can command a higher service fee than anywhere else in the world.
Securing a significant return on outlay isn’t restricted to leading colts: with the second largest breeding industry in the world, top Australian fillies and mares are in high demand when they reach the end of their racing career; our racing industry is also the main gateway into the lucrative Asian market for tried horses.
In the past five years, some 50 fillies and mares have been sold for A$1 million or more at auction after a career on the track. The average price of those horses was A$195,258 as yearlings. Many mares are also traded privately with the likes of Golden Slipper winner She Will Reign and Vinery Stud Stakes winner Single Gaze heading to Japan in recent years.
RACE FILLIES/MARES SOLD FOR A$1M
39 OFFERED AT AUCTION AS YEARLING
AVERAGE YEARLING PRICE
The global influence of our bloodlines has been marked recently with the 2019 Epsom Derby winner being out of Australian mare Believe’N’Succeed, while 2020 Royal Ascot winner Russian Emperor was the result of Galileo being crossed with another to carry the Aus suffix, champion Atlantic Jewel. In America, the top colt at Keeneland September in 2019 was the first foal from Australian mare Bounding.
Despite the uncertainty caused by COVID-19 in the bloodstock market, eight Group One-winning mares sold off the track in 2020 for an auction average of A$1.8 million.
Australia has been trading horses to race in Asia for decades and in the last 5 years more than a thousand racing prospects have been sold to Hong Kong, while strong trading ties to Singapore and Macau are now being complemented by the emerging mainland Chinese market.
Many of the greats of Hong Kong racing, such as Rapper Dragon, Able Friend, Sacred Kingdom and Silent Witness, are all Australian-bred, with this list of champions being added to by the likes of Beat The Clock and current Derby winner Golden Sixty.
In Singapore our horses won all seven Group One contests in 2020, building on a success rate that has seen Australian-breds win the majority of the top level races in the past decade with the likes of Inferno, Top Knight andAramaayo.
The key yearling sales tie-in with major racing events and involve serious socialising, making them highlights you will want to add to your calendar Both sales companies are happy to provide advice and assistance to new buyers, and they have bidding systems that allow participation from the other side of the world. At every major sale there are parade videos of each lot.
All are welcome to get involved, and between the different arms that make up the Australian thoroughbred industry, you'll have assistance wherever you turn. Should you require any further information or impartial advice, the team at Aushorse are happy to help.
More information is available by reaching out to the team at Aushorse.
CEO
P: +61 2 9663 8581
M: +61 (0) 423 146 334
Tom@tbaus.com
Asia Representative
M: +61 (0) 425 056 960
lucas@aushorse.net.au
M: +61 (0) 411 696 036
Cecelia@tbaus.com