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Investors' guide

The land
of opportunity

Locally bred Vow And Declare wins the Melbourne Cup

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,

Tom Reilly

Tom Reilly
Chief Executive Officer

Unrivalled
riches

Connections of Redzel celebrate his second win of The Everest

Australian prizemoney growth has easily outstripped every other nation in the last 10 years – 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 Mile, the richest 1200 and 1600 metre events in the world – purses at all levels have been growing significantly. In the two biggest racing cities, Sydney and Melbourne, minimum race values are A$125,000 at the weekend and A$50,000 on weekdays, and even at provincial tracks minimum values are A$22,000.

Incredibly, there are now 60 races in Australia worth A$1 million or more, which compares to just 22 of this value across the whole of Europe.

And owners contribute much less to prizemoney than overseas. In 2017 entry fees in Australia accounted for just 4.5% of total purses, compared to 15.3% in the UK and 23% in Ireland.

Global Prizemoney Trends

TEN YEAR CHANGE 2010 - 2019

Australian races worth A$1 million or more

2012: 21 races. 2014: 28 races. 2015: 36 races. 2016: 39 races. 2019: 59 races. Across all of Europe, there are just 22 races worth A$1 million.

Home advantage

There is
A$62 million
in additional prizemoney available
for Australian bred or sold horses

In addition to standard prizemoney, there are a host of valuable state breeding schemes and restricted sales races. Combined, these incentives mean there is an extra A$62 million on offer for locally bred or sold horses.

The generous VOBIS (Victorian), QTIS (Queensland) and BOBS (NSW) breeding schemes offer owners bonuses of up to A$180,000 if their eligible horse wins a nominated race.

The Magic Millions series includes some 22 races and A$12.7 million of prizemoney, with a A$10 million raceday in January, while their rivals Inglis offer A$8 million in bonuses across eight races.

And for the most important races it pays to buy Australian.

In the past ten years all the winners of the breed-shaping Group One races the Blue Diamond, the Golden Slipper, the Golden Rose, the Caulfield Guineas, and the Coolmore Stud Stakes have all been born and raised in Australia.

A strategic play

Purchasing an elite colt at the Australian yearling sales is more affordable than in other parts of the world.

Over the past five years, the average price for the top 50 yearling colts in Australia was 40% less than Europe and 35% less than America.

And in addition to the fact they are racing for more prizemoney, Australian colts are often worth more as stallion prospects at the end of their racing careers.

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.

This means that owners of top colts have very valuable commodities. In the past five years horses such as Merchant Navy, Vancouver, Russian Revolution and The Autumn Sun, have been sold or syndicated for stud duties at valuations between A$20 million and A$40 million.

Average purchase price
of top 50 colts in usd

1,106,000

Average purchase price
of top 50 colts in usd

993,000

Average purchase price
of top 50 colts in usd

650,000

Average freshman service fee

PER REGION, US$ 2010 - 2019 France: $6,700

Average freshman service fee

PER REGION, US$ 2010 - 2019 Ireland: $15,400

Average freshman service fee

PER REGION, US$ 2010 - 2019 United Kingdom: $19,000

Average freshman service fee

PER REGION, US$ 2010 - 2019 USA: $27,300

Average freshman service fee

PER REGION, US$ 2010 - 2019 United Kingdom: $19,000

Secondary Markets

Extra Brut

Purchased for
A$100,000
Aus Prizemoney
A$1,602,600
Best win
Grp 1 VRC Derby
Sold after
9 starts, 4 wins
Sold (Hong Kong)
A$1.5 million +

MILLARD REACTION

Purchased for
A$220,000
Aus Prizemoney
A$84,200
Best win
Listed Placed
Sold after
3 starts, 2 wins
Sold (Hong Kong)
A$1.5 million +

Leicester
(Helene Leadingstar)

Purchased for
A$10,000
Aus Prizemoney
A$535,700
Best win
Grp 1 SA Derby
Sold after
9 starts, 4 wins
Sold (Hong Kong)
A$1.0 million +

Prince of Sussex
(Lucky Express)

Purchased for
A$145,000
Aus Prizemoney
A$681,250
Best win
The showdown
Sold after
3 starts, 2 wins
Sold (Hong Kong)
A$1.5 million +

As well as stallion potential, there is a lucrative market for tried horses into Asia.

Although some yearlings are bought specifically for export, many owners and trainers prefer to source stock that has raced or trialled publicly.

It is rare for a horse to be sold to Hong Kong for less than A$200,000 and there are many horses sold each year for well in excess of A$1 million. In 2018 some 238 horses were exported from Australia to Hong Kong, along with 182 to Singapore, where sale prices are slightly lower.

For those racing fillies, there are also handsome dividends if successful.

In the past five years 139 stakes winning fillies or mares have been sold at auction immediately after their careers for an average price of A$544,000, compared to an average yearling price of A$117,000.

Access to
the best

Winx was a A$230,000 yearling buy who won a world record of 25 Group One races

In Australia the vast majority of breeders are sellers, so there is a big pool of horses at all levels of the market.

And this means more top class horses go through a sales ring than almost any jurisdiction in the world.

In 2019 alone 71% of all Group One winners were offered for auction before their win - this compares to just 35% in Europe.

The majority of elite colts are also available to buy. Since 2013, nine of the 10 most expensive first-season sires in Australia have been offered for sale as a yearling.

Australian breeders
sell their best

Australia: 71%
71%
Europe: 35%
35%

Group One winners in 2019
offered for sale prior to win

The best of bloodlines

American Pharoah

Overseas service fee 2019
US$110,000
Australian service fee 2019
A$66,000

American Pharoah

Frosted

Overseas service fee 2019
US$40,000
Australian service fee 2019
A$27,500

Frosted

No Nay Never

Overseas service fee 2019
€100,000
Australian service fee 2019
A$44,000

No Nay Never

Ribchester

Overseas service fee 2019
€20,000
Australian service fee 2019
A$22,000

Ribchester

Harry Angel

Overseas service fee 2019
£20,000
Australian service fee 2019
A$22,000

Harry Angel

Australia offers a mix of bloodlines unmatched anywhere else in the world, with breeders having access to the best sire lines from across the globe.

From the early shuttle sire experiment with Bluebird and Last Tycoon, through to the dominance of Danehill, northern hemisphere bloodlines have helped shape the Australian breed, with modern-day greats More Than Ready, Medaglia d’Oro and Street Cry creating their own legacies here.

In 2019 there were 21 shuttle stallions in Australia, including sons of Tapit, Scat Daddy, Galileo, Deep Impact, Dubawi and Invincible Spirit.

And many of those were available at a fraction of their northern hemisphere fee.

Justify

Overseas service fee 2019
US$150,000
Australian service fee 2019
PRIVATE

Justify

The highest standards

Choisir
Takeover Target
Miss Andretti
Haradasun
Scenic Blast
Starspangledbanner
Black Caviar
Merchant Navy

When it comes to quality, there is no doubt Australia’s stars can match it with the best in the world.

Recent champion Winx dominated the world rankings for years, while a horse carrying the AUS suffix has been champion sprinter in eight of the past 10 years.

At Royal Ascot Australian horses regularly carry all before them; from the flag-bearer Choisir, back in 2003, through to Takeover Target, Black Caviar and, most recently, Merchant Navy, along with many others.

And our racing is also recognised for its excellence. In 2018, 31 of the races ranked in the world’s top 100 were run in Australia.

In Hong Kong half the equine population is sourced from Down Under, with legends Rapper Dragon, Able Friend, Sacred Kingdom and Silent Witness among the many to have hailed from Australia.

A global impact

Anthony van Dyck, out of Australian mare Believe’N’Succeed, wins the Epsom Derby

The influence of the Australian breeding industry is growing every year, a fact highlighted by Anthony van Dyck’s win in the English Derby.

The son of Galileo was bred from Australian mare Believe’N’Succeed, herself a two year-old stakes winner over 1100 metres.

And this wasn’t the first time Coolmore had fused Australian and European pedigrees for an excellent result: their globetrotting champion Highland Reel, along with his Group One winning full brother, Cape Of Good Hope, are both sons of the Australian mare Hveger.

And it is not just on the track where this influence is being felt. At this year’s Keeneland September Sale the top priced colt was a US$4.1 million son of Curlin out of Australian mare Bounding.

In the breeding barns of the northernhemisphere ‘reverse shuttlers’ are also becoming more popular, with young sires Zoustar and Astern booking out in the UK and America, while stalwarts Exceed And Excel and Fastnet Rock continue to breed books of over 100 mares in Europe.

A unique racing experience

Owners at Flemington

In 1895 American writer Mark Twain said of the Melbourne Cup: “Nowhere in the world have I encountered a festival of people that has such a magnificent appeal to the whole nation.”

Over a century on and the Flemington Carnival still astonishes. And now it has been joined by the likes of The Everest Carnival, the Magic Millions race day and The Championships at Randwick.

Any way you look at the numbers, Australians love racing.

There are more than 101,000 who own a share in a racehorse, meaning there are more owners here than in Europe and America combined.

Aussies bet an average of US$862 a year on horses, compared to US$274 in the UK, US$179 in France and US$45 in America. In fact, in 2018 more money was wagered on thoroughbred racing in Australia than the whole of the USA.

There are four cable television stations, and a free-to-air platform, that cover every race on which there is betting, while the biggest selling newspaper in each major city carries a minimum of 12 pages of form every day.

Number of racehorse owners by region

FIGURES PER 10,000 PER REGION

France
0
USA
0
UK
0
Ireland
0
Australia
0+

A SUSTAINABLE PATH

Australia is also committed to meeting the challenge of caring for our animals in their retirement. In Victoria, the racing regulator recently announced it was allocating A$25 million for this cause across the next three years.

In NSW racing administrators now own or lease six properties that are given over to the rehoming and retraining of retired racehorses, while there are also schemes running in every other state.

With racing and breeding being such big industries Down Under – combined they support some 80,000 full time jobs – we are grateful of the support of the federal and state governments.

In Melbourne the state racing minister has put millions of dollars into prizemoney, the new Flemington grandstand, plus thoroughbred research. In Queensland the state government pays prizemoney for country racing out of consolidated revenue, while in Sydney the redevelopment of Randwick as well as the launching of The Everest and The Championships were all financially supported by Treasury.

HOW TO GET INVOLVED

We hope you enjoyed our guide and please don’t hesitate to get in touch if you require more information on buying in Australia. There are no residency restrictions, so all are welcome from around the world.

Please reach us at:

Tom Reilly

Chief Executive

Email: tom@tbaus.com
Mobile: +61 423 146 334
Phone: +61 2 9663 8581

Cecelia O’Gorman

Communications Manager

Email: cecelia@tbaus.com
Mobile: +61 411 696 036
Phone: +61 2 9663 8444

Aleesha Phillips

Marketing Manager

Email: aleesha@aushorse.net.au
Mobile: +61 438 732 674
Phone: +61 2 9663 8462

Lucas Liang

ASIA Representative

Email: lucas@aushorse.net.au
Mobile: +61 425 056 960
Phone: +61 2 9663 8477

You can also contact the two sales companies directly. Their contacts details are all available here.

Magic Millions Ingliss

There has never been a better time to invest in the Australian thoroughbred industry. Join us in 2020 at our yearling sales.

UPCOMING AUCTIONS FOR 2020

January

8-14

MAGIC MILLIONS
GOLD COAST
YEARLING SALE

Queensland

February

9-11

INGLIS
CLASSIC
YEARLING SALE

New South Wales

February

17-18

MAGIC MILLIONS
PERTH
YEARLING SALE

Western Australia

February

24

MAGIC MILLIONS
TASMANIAN
YEARLING SALE

Tasmania

March

1-3

INGLIS
MELBOURNE PREMIER
YEARLING SALE

Victoria

March

10-11

MAGIC MILLIONS
ADELAIDE
YEARLING SALE

South Australia

March

16-17

MAGIC MILLIONS
MARCH
YEARLING SALE

Queensland

April

7-8

INGLIS
AUSTRALIAN EASTER
YEARLING SALE

New South Wales

April

19-20

INGLIS
MELBOURNE GOLD
YEARLING SALE

Tasmania

June

3-5

MAGIC MILLIONS
NATIONAL
YEARLING SALE

Queensland

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.