Auctions Digest. Presented by

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1 Auctions Digest 2008 Presented by

2 08 Auctions Digest Overview Sharp Correction By Deirdre B. Biles Following several years of growth and a flat 2007, the auction market takes a dive in 2008 T he financial health of North America s Thoroughbred auction business took an alarming turn for the worse in After an increase in gross revenue for four consecutive years that ended in 2007 and total revenue of more than $1 billion for four straight years beginning in 2004, a significant correction in the sales cycle was expected, and few people were predicting any kind of growth. An oversupply of auction horses was a major problem, but a horrifying domestic economic crisis in the second half of the year delivered the most surprising and stunning blow. Described as the most devastating financial setback since the Great Depression, its effects were felt worldwide as home values plunged, credit dried up, and companies, big and small, Yearling colt Vallenzeri was a $7.7 million buy-back at the Keeneland September sale Anne M. Eberhardt struggled to stay solvent. The cascade of negative developments pummeled the Thoroughbred marketplace. During the second week of the Keeneland September yearling sale, Wall Street nearly collapsed, but the losses weren t overwhelming. The gross fell 14.8% from 2007, while the average price dropped 10.2%. There are still people here buying horses, so it s not really at the panic stage, said Three Chimneys Sales Case Clay during the auction s 15th and final session. That attitude changed beginning in October as the disappointing financial reports outside the equine industry started piling up and prices at Thoroughbred sales began spiraling downward much more dramatically. The results of the Ocala Breeders Sales Co. fall mixed auction were ominous, with the gross plummeting 64.9% and the average declining 38.8%. Then, at the Keeneland November breeding stock sale, the gross dropped 45.5% and the average decreased 39%. In other mixed auctions that followed, the huge declines became routine. Meanwhile, numerous farms reduced the 2009 stud fees for their stallions and many cut them again, anticipating that even harder times could be ahead. The damage to the 2008 auction business based on the combined results for the four main groups of sale horses: weanlings, yearlings, 2-year-olds, and broodmares was as follows: The number sold, which was down for the second year in a row, fell 12.7%, from 20,435 in 2007 to 17,841. The 2008 total was the lowest since 17,724 horses were sold in 2002, the year after the 9/11 terrorist attacks and the outbreak of mare reproductive loss syndrome (MRLS) in Central Kentucky. The gross, also in decline for the second consecutive year, dropped 20.4%, from $1,211,792,383 to $965,175,073, the lowest total since the 2003 figure of $849,280,349. It was only the fourth time in nine years the total had been below the $1-billion level, which had first been achieved in The average decreased for the second straight year, slipping 8.8%, from $59,300 to $54,099, the lowest amount since the $53,102 average of The market did manage to generate a Thoroughbred auction world record for the sale of a broodmare, but the noteworthy transaction didn t really demonstrate the market s resiliency under difficult circumstances. It was more about a co-owner s enthusiasm for a special producer. Better Than Honour, the 2007 Kentucky Broodmare of the Year, commanded $14 million at the Fasig-Tipton Kentucky November select mixed sale. John Sikura s Hill n Dale Sales Agency, as agent, consigned her to the auction to dissolve a partnership involving Sikura and Mike Moreno s Southern Equine Stables. Southern Equine, which already controlled a 70% interest in the 12-year-old daughter of Deputy Minister, was the buyer. Better Than Honour, who wasn t in foal when she went through the Fasig- Tipton Kentucky sale ring, is the dam of 2006 Belmont Stakes (gr. I) winner Jazil and 2007 Belmont winner and champion Rags to Riches. The previous boodmare mark was the $10.5 million brought by English champion Playful Act during the 2007 Keeneland November breeding stock sale. Another newsworthy development involved Vallenzeri, a yearling colt by 1992 Horse of the Year A.P. Indy and out of 2002 Horse of the Year Azeri. Michael Paulson bought back Vallenzeri for the world record amount of $7.7 million from the Hill n Dale consignment at the Keeneland September yearling sale. The former peak, $7.5 million, had been reached when Ajdal failed to find a new home during the 1985 edition of the now defunct Keeneland July select yearling auction. That horse later became a champion in England. WIDESPREAD GLOOM All four main categories of auction horses suffered downturns of some sort in 6218 THE BLOOD-HORSE december 27, 2008

3 2008, and the losses were more common than the gains. Not surprisingly, the categories offered earlier in the year tended to fare better than the ones offered later in the auction schedule when the domestic and global economic woes were at their worst. Most 2-year-olds traditionally are marketed in the late winter and spring. The 2,857 that sold in 2008 grossed $182,671,515 and averaged $63,938. The median price was $20,000, which was the same as the previous year s figure. When the other statistics were compared to 2007, the number sold and gross declined 8.5% and 5.4%, respectively. The average was up 3.9%. Yearlings, most of which are sold in the summer and early fall, found the going a bit tougher. The number sold, 9,094, declined 10.5% from the 2007 all-time high of 10,160. The median, $12,500, dropped 16.7%, from another record of $15,000 that had been set in The gross of $468,283,587 was down 16.7%, and the average of $51,494 fell 6.9%. Weanlings, offered late in the year, experienced double-digit declines in all statistical categories. The number sold fell 22% to 1,525, while the gross dropped 34.2% to $57,066,068. The average declined 15.7% to $37,420, and median, which had been at the all-time high of $17,000 in 2006 and 2007, tumbled 41.2% to $10,000. Broodmares, the best and most of which are sold in the autumn, also produced similar trends. The gross plunged 30.5%, from an all-time high of $370,099,831 in 2007 to $257,153,903. The average dropped 17.2%, from a record of $71,187 to $58,913. The number sold declined 16%, from 5,199 Gross Revenue Yearlings Weanlings 2-Year-Olds Broodmares Total $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 to 4,365. And the median fell 12%, from $12,500 to $11,000. It s pretty clear what happened everywhere, and that is discretionary funds dried up among many, many of our customers in the whole world, said Jerry Mc- Mahon, who announced his resignation as the president and general manager of Southern California-based Barretts Equine Ltd. in December. b YEARLINGS from 07 Gross Revenue $440,078,922 $519,443,808 $473,044,553 $390,714,442 $425,251,514 $497,153,983 $553,928,546 $579,176,596 $561,846,659 $468,283, % Number 8,738 9,530 9,002 8,941 8,843 9,412 10,088 10,142 10,160 9, % $50,364 $54,506 $52,549 $43,699 $48,089 $52,821 $54,910 $57,107 $55,300 $51, % Median $12,000 $11,500 $9,000 $11,000 $12,000 $13,200 $13,500 $14,000 $15,000 $12, % WEANLINGS from 07 Gross Revenue $98,109,089 $83,758,024 $52,534,780 $49,061,493 $68,058,938 $71,730,989 $79,737,644 $100,723,243 $86,770,649 $57,066, % Number 2,290 2,346 1,933 1,575 1,728 1,952 1,824 2,022 1,954 1,525-22% $42,842 $35,702 $27,178 $31,150 $39,386 $36,747 $43,716 $49,814 $44,407 $37, % Median $15,000 $10,000 $7,000 $11,000 $12,000 $15,000 $15,000 $17,000 $17,000 $10, % 2-YEAR-OLDS from 07 Gross Revenue $156,565,473 $154,849,237 $127,133,855 $130,015,650 $139,721,364 $175,336,258 $190,888,903 $217,100,214 $193,075,244 $182,671, % Number 2,980 3,041 2,730 2,726 3,055 3,009 3,137 3,107 3,122 2, % $52,539 $50,921 $46,569 $47,695 $45,735 $58,271 $60,851 $69,875 $61,843 $63, % Median $20,000 $20,000 $19,000 $18,000 $17,000 $20,000 $22,000 $24,000 $20,000 $20,000 0% BROODMARES from 07 Gross Revenue $292,701,616 $311,141,964 $183,086,926 $189,958,851 $216,248,533 $289,401,203 $298,281,368 $328,912,274 $370,099,831 $257,153, % Number 5,300 5,490 4,815 4,482 4,866 5,092 5,122 5,261 5,199 4,365-16% $55,227 $56,674 $38,024 $42,383 $44,441 $56,834 $58,235 $62,519 $71,187 $58, % Median $13,500 $9,000 $6,500 $7,000 $7,000 $9,500 $10,000 $11,500 $12,500 $11,000-12% TOTALS from 07 Gross Revenue $987,455,100 $1,069,193,033 $835,800,114 $759,750,436 $849,280,349 $1,033,622,434 $1,122,836,461 $1,225,912,327 $1,211,792,383 $965,175, % Number 19,308 20,407 18,480 17,724 18,492 19,465 20,171 20,532 20,435 17, % $51,142 $52,393 $45,227 $42,866 $45,927 $53,102 $55,666 $59,707 $59,300 $54, % THE BLOOD-HORSE DECEMBER 27,

4 08 Auctions Digest Yearlings Missing Millions By Evan I. Hammonds From 2007 to 2008, gross expenditures for sale yearlings plummeted sharply F or the second year in a row, all major indices for the yearling auction market had down arrows. However, the end figures for 2008 are a lot more sobering and the drops much more dramatic. The most significant number would be the total, in dollars, missing from yearling vendors pockets at the end of the selling season. While it is the same story in all other markets in the Thoroughbred industry, and likely all other markets throughout the global economy, there is a lot of money that has been taken off the table. The drop in gross expenditures for sale yearlings from 2007 to 2008 was more than $93 million. At the world s largest yearling sale, the marathon Keeneland September yearling sale, 14.8%, or just more than $57 million less, was spent in 2008 from The average at the sale fell below $100,000 North American Yearling Sales after a three-year run at six figures. Heading into the sale, the consensus was the middle-to-lower end of the market was the soft spot, but that wasn t exactly the case. The first two sessions, or the select portion, were down 16.8% and 26.5%, respectively, by gross. While the sale was down in each comparable session to the previous year, it held fairly steady until the last five days, when the gross plunged 25.6%, 35.2%, 29.7%, 39.7%, and 26.8% from the 2007 figures. In using The Blood-Horse s calculation to determine profitability, a formula of twice The top-priced yearling of 2008 was a filly by A.P Indy out of Chimichurri the stud fee plus $15,000, minus commission, it was determined only 22% of Keeneland September yearlings were indeed profitable. The 2007 figure was 25%. As for timing, it was a plus the sale was held before global financial markets fell even further in October and November. At the Fasig-Tipton Midlantic Eastern fall yearling sale, which followed the September sale, the average fell 26.8%, while the gross dropped from $13.3 million to $8.2 million. A year ago, the Maktoums helped lead the market downward, reducing their spending on yearlings from approximately $83 million in 2006 to $32.5 million in They actually spent quite a bit more in 2008, with John Ferguson (bloodstock agent for Sheikh Mohammed), Sheikh Hamdan s Shadwell operation, and associates Rabbah Bloodstock spending about $39.5 million. The market s bright spot was a new group, Legends Racing, a consortium founded by Olin Gentry, Thomas Gaines, and Tripp Hardy. Utilizing trainers D. Wayne Lukas, Nick Zito, and Bob Baffert and buying at the top end of the market, Legends Racing was the second-leading buyer of yearlings for the year, spending $15,285,000 for 38 head. After the steep drops in 2002 that followed 9/11 and a crop of yearlings affected by mare reproductive loss syndrome, the yearling market had experienced unprecedented growth. The gross soared more than 48% in four years from 2002 to 2006, while the average rose more than 30%. The good times couldn t last forever. Underlying pressures from overproduction came into play last year and were exacerbated this season with the rug being Not Gross Median $60,000 Year Offered % Revenue ,184 4, % 9,094 $468,283,587 $51,494 $12, ,988 3, % 10,160 $561,846,659 $55,300 $15,000 $50, ,910 3, % 10,142 $579,176,596 $57,107 $14, ,726 3, % 10,088 $553,928,546 $54,910 $13, ,524 3, % 9,412 $497,153,983 $52,821 $13,200 $40, ,699 2, % 8,843 $425,251,514 $48,089 $12, ,030 3, % 8,941 $390,714,442 $43,699 $11, ,608 3, % 9,002 $473,044,553 $52,549 $9,000 $30, ,642 3, % 9,530 $519,443,808 $54,506 $11, ,288 2, % 8,738 $440,078,922 $50,364 $12, ,698 2, % 8,275 $354,058,332 $42,787 $11,500 $20, ,027 2, % 8,014 $307,607,857 $38,384 $11, ,131 2, % 8,025 $277,224,816 $34,545 $9,500 $10, ,537 1, % 7,882 $242,778,829 $30,801 $10, ,780 2, % 7,706 $210,336,433 $27,295 $9,162 Median ,931 1, % 7,413 $188,598,650 $25,441 $8,000 $ ,858 1, % 7,908 $180,232,617 $22,791 $7,000 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 Joseph v. Diorio 6220 THE BLOOD-HORSE december 27, 2008

5 pulled out beneath it from Wall Street and other financial market shortcomings. A similar trend was seen 20 years ago, when nearly $100-million dollars disappeared from the overall yearling market from 1984 to There was a slight rebound, but from 1989 to 1992, gross spending on yearlings dropped even further, from $281 million to $180 million. Also, the number of yearlings sold during that time frame slid from 9,083 in 1988 to 7,908 in The key indicators in 2008 show: The gross dropped 16.7%, from $561,846,659 in 2007 to $468,283,587. The 2008 yearling average of $51,494 fell 6.9% from $55,300. The fall was not as dramatic as the gross, because: From 2007 the number sold fell 10.5%, from 10,160 to 9,094. Longtime leaders Storm Cat and A.P. Indy were the leading sires of sale yearlings by average. Both recorded averages above $500,000. Storm Cat, who was pensioned from stallion duty earlier in 2008, had 22 yearlings sell for an average of $687,273. Leading sire A.P. Indy had 30 yearlings sell for an average of $581,333. Ghostzapper, 2004 Horse of the Year, was the most popular of the first-year stallions. Thirty-four of his yearlings sold for an average of $283,765. That figure was nearly Leading Yearling s Storm Cat 22 $100,000 $2,000,000 $687,273 A.P. Indy 30 $35,000 $3,100,000 $581,333 Kingmambo 8 $50,000 $1,000,000 $443,750 Distorted Humor 32 $32,000 $1,200,000 $417,313 Unbridled's Song 45 $50,000 $1,700,000 $350,156 Giant's Causeway 59 $15,000 $1,250,000 $284,102 Ghostzapper 34 $3,000 $925,000 $283,765 Dynaformer 28 $13,000 $950,000 $270,286 Mr. Greeley 64 $7,000 $1,000,000 $245,250 Empire Maker 32 $15,000 $1,700,000 $242,906 Smart Strike 30 $3,500 $650,000 $231,133 Pulpit 24 $20,000 $800,000 $207,833 Gone West 22 $1,000 $625,000 $180,500 Elusive Quality 40 $5,000 $550,000 $176,338 Seeking the Gold 10 $12,000 $300,000 $176,100 First-crop sire double that of Rock Hard Ten, the secondmost popular first-crop stallion, whose average of $147,848 was reached through 46 sale yearlings. Eurosilver was the most prolific first-year stallion, with a whopping 92 sale yearlings. At the top end, the number of million-dollar yearlings sold fell for the third year in a row. In 2005, 44 yearlings brought at least seven figures, a number that dropped to 38 in 2006, 34 in 2007, and 21 in Leading First -Crop Yearling s Ghostzapper 34 $3,000 $925,000 $283,765 Rock Hard Ten 46 $1,000 $725,000 $147,848 Afleet Alex 70 $4,000 $725,000 $120,464 Saint Liam 47 $2,000 $500,000 $116,326 Forest Danger 34 $4,700 $320,000 $88,197 Eddington 51 $2,000 $325,000 $63,088 Roman Ruler 86 $1,000 $270,000 $58,664 Closing Argument 42 $1,500 $330,000 $53,052 Blazonry 4 $1,700 $140,000 $52,425 Purge 83 $1,000 $180,000 $51,148 Leroidesanimaux 26 $1,700 $200,000 $47,779 Eurosilver 92 $900 $320,000 $46,980 Consolidator 47 $2,000 $260,000 $46,455 Value Plus 64 $1,000 $250,000 $42,613 Limehouse 65 $2,500 $185,000 $40,846 Ferguson purchased the year s toppriced yearling, a daughter of A.P. Indy, out of the Elusive Quality mare Chimichurri, that fetched $3.1 million at the Keeneland September sale. By far the most memorable yearling to go through the ring at Keeneland was a son of A.P. Indy out of champion Azeri. Named Vallenzeri and consigned by Hill n Dale Sales Agency, agent, the striking chestnut colt was bought back by Michael Paulson for a record $7.7 million. b North American Annual Yearling Sales Year Total Yrlgs Percent Yrlgs Sales Gross Avg. Median Colts Colts Avg. Fillies Fillies Avg. Kee/ Sar** Kee/Sar** Avg ,630* 22% 9,094 $468,283,587 $51,494 $12,500 4,653 $57,364 4,441 $45,343t 422 $354,116 8,672 $36, ,500* 27% 10,160 $561,846,659 $55,300 $15,000 5,316 $61,374 4,844 $48, $389,267 9,681 $38, ,300* 28% 10,142 $579,176,596 $57,107 $14,000 5,350 $66,802 4,792 $46, $442,716 9,717 $40, ,200* 27% 10,088 $553,928,546 $54,910 $13,500 5,256 $65,831 4,830 $43, $324,417 9,985 $52, ,822 25% 9,412 $497,153,983 $52,821 $13,200 4,794 $63,371 4,618 $41, $304,700 9,262 $48, ,031 25% 8,843 $425,251,514 $48,089 $12,000 4,627 $55,448 4,216 $40, $313,357 8,689 $43, ,951 24% 8,941 $390,714,442 $43,699 $11,000 4,662 $49,132 4,279 $37, $341,969 8,714 $35, ,900 24% 9,002 $473,044,553 $52,549 $9,000 4,646 $62,590 4,356 $41, $500,494 8,751 $39, ,750 26% 9,530 $519,443,808 $54,506 $11,500 4,960 $62,532 4,570 $45, $459,300 9,263 $42, ,927 24% 8,738 $440,078,922 $50,364 $12,000 4,618 $56,527 4,120 $43, $412,000 8,457 $38, ,021 24% 8,275 $354,058,332 $42,787 $11,500 4,374 $48,939 3,901 $35, $341,408 7,964 $31, ,141 23% 8,014 $307,607,857 $38,384 $11,500 4,196 $44,705 3,818 $31, $276,869 7,688 $28,271 *Estimated; **No Keeneland July sale in , Saratoga figures only; Saratoga and Keeneland September select (first two sessions) Others Others Avg. Yearling Ranges by Year Year est 2000 $6,800, $6,400, $3,100, $3,800, $8,000, $9,700, $11,700, $3,700, $3,100,000 $1,000,000 and above $750,000 to $999,999 $500,000 to $749, % % % % % % % % % % % % % % % % % % % % % % % % % % % $300,000 to $499,999 $200,000 to $299,999 $100,000 to $199, % 200 2% 549 6% 155 2% 149 2% 550 6% 121 1% 188 2% 528 6% 141 2% 209 2% 520 6% 165 2% 236 2% 719 8% 188 2% 250 3% 717 7% 206 2% 310 3% 778 8% % % % % % % $50,001 to $99,999 $30,001 to $50,000 $20,001 to $30, % 885 9% 813 9% 594 7% 709 8% 672 8% 743 8% 832 9% 728 8% 734 8% 835 9% 767 9% 870 9% % 778 8% 953 9% % 830 8% 956 9% 960 9% 770 8% % 1, % % % % % $10,001 to $20,000 $10,000 and less Total Yearlings 1,501 16% 4,541 48% 9, % 1,207 13% 4,816 54% 9, % 1,301 15% 4,405 49% 8, % 1,341 15% 4,178 47% 8, % 1,336 14% 4,259 45% 9, % 1,460 15% 4,573 45% 10, % 1,449 14% 4,580 45% 10, % 1, % 4, % 10, % 1, % 4, % 9, % $54,506 $52,549 $43,699 $48,089 $52,821 $54,910 $57,107 $55,300 $51,494 Median $11,500 $9,000 $11,000 $12,000 $13,200 $13,500 $14,000 $15,000 $12,500 THE BLOOD-HORSE DECEMBER 27,

6 08 Auctions Digest Weanlings Down, Baby, Down by Amanda H. Duckworth Following global economic trends, the market for weanlings dropped significantly A lthough Thoroughbred auctions were fairly resilient until late in the year, that did little to help the weanling market, which suffered significant decreases in every major category. As the global economy got progressively worse throughout 2008, so did sale results. By the time weanlings made their way into the ring, there was little consignors could do. In all, gross revenue dropped 34.2% and the number of weanlings sold dropped 22% from This is the second consecutive year the weanling market has regressed. In 2007, the gross dropped 13.9% and the number sold dipped 3.4% compared to 2006, which was a banner year for weanling sales. It was then that record prices were posted, and impressive growth took place in all major categories. Leading Weanling s Bernardini 6 $150,000 $1,475,000 $456,667 Distorted Humor 5 $150,000 $520,000 $326,000 Unbridled s Song 3 $120,000 $370,000 $230,000 Street Cry 8 $70,000 $300,000 $207,500 Mr. Greeley 9 $75,000 $350,000 $191,667 Bluegrass Cat 12 $72,000 $320,000 $158,917 Giant s Causeway 12 $55,000 $350,000 $158,750 Henny Hughes 13 $12,000 $325,000 $151,692 Speightstown 8 $35,000 $280,000 $140,625 Indian Charlie 12 $8,000 $370,000 $130,250 Tiznow 17 $20,000 $285,000 $128,176 Ghostzapper 6 $90,000 $200,000 $125,833 Malibu Moon 7 $10,000 $350,000 $113,571 Maria s Mon 4 $15,000 $350,000 $111,250 More Than Ready 8 $12,000 $290,000 $104,375 First-crop sire Conversely, the 1,525 weanlings sold in 2008 were the lowest number to find new homes in 16 years, since In that time span, the only other instances the number sold dipped below 1,700 came in 2002 and 1993 when 1,575 and 1,536 weanlings were sold, respectively. However, in 1993, gross increased 51.1% from the year before, and the weanlings of 2002 were the resulting product after the outbreak of mare reproductive loss syndrome in Of course, a well-bred horse with good conformation will still fetch an impressive price, as evidenced by the top-selling weanling of A filly by first-crop sire This Bernardini Teeming filly brought $1.475 million Bernardini sold to Chesapeake Partners for $1.475 million during the first day of Leading First -Crop Weanling s Bernardini 6 $150,000 $1,475,000 $456,667 Bluegrass Cat 12 $72,000 $320,000 $158,917 Henny Hughes 13 $12,000 $325,000 $151,692 First Samurai 10 $7,500 $285,000 $101,950 War Front 7 $1,200 $125,000 $51,171 Sharp Humor 12 $1,500 $160,000 $49,917 Flower Alley 7 $12,000 $120,000 $49,857 Silver Train 26 $1,900 $150,000 $46,208 Rockport Harbor 15 $3,500 $95,000 $45,100 Star Dabbler 3 $10,000 $100,000 $42,333 Borrego 9 $2,000 $175,000 $39,611 Aragorn 16 $1,000 $100,000 $35,169 Badge of Silver 7 $5,000 $68,000 $30,857 Congrats 10 $2,500 $70,000 $27,250 Greeley s Galaxy 3 $15,000 $47,000 $25,667 With Distinction 11 $2,800 $61,000 $23,800 the Keeneland November breeding stock sale. She was the only seven-figure weanling of the year. Consigned by agent Hill n Dale Sales Agency, the bay filly is out of the winning Storm Cat mare Teeming, who is a half-sister to Belmont Stakes (gr. I) winners Rags to Riches and Jazil. Their dam, Better Than Honour, was named 2007 Broodmare of the Year and sold for a world-record price of $14 million during the Fasig-Tipton November mixed sale one day before Teeming s foal sold. By A.P. Indy, Bernardini is out of 2006 Broodmare of the Year Cara Rafaela. Helped in large part by his top-selling filly, Bernardini was both the leading North American sire and first-crop sire of sale weanlings by gross and average, with three or more progeny sold. Six foals by the 2006 champion 3-year-old male sold for $2,740,000, with the Teeming filly making up 53.8% of that total. His weanlings averaged $456,667, with the lowest-priced selling for $150,000. Given the weak market, it is also not a surprise that Chesapeake Partners was the leading weanling buyer, mainly as a result of purchasing the Bernardini filly. Reiley McDonald of Eaton Sales signed the ticket and said the weanling was bought for a group of Eaton partners. Chesapeake Partners spent a total of $1,647,000 after buying three other weanlings. John Ferguson, who acts as agent for Sheikh Mohammed, was the second-biggest spender in the weanling market. He paid $1,560,000 for five weanlings, including $360,000 for a Bernardini Banshee Winds, by Known Fact, colt and $300,000 for a Bernardini colt out of the Horse Chestnut mare Castanea. Bernardini raced as a homebred for Sheikh Mohammed s Darley Stable and stands at Darley near Lexington. However, the top end of the weanling market did suffer in 2008 and had a noticeable lack of high-dollar horses. In 2007 and 2008, only one weanling sold for $1 million or more, but four weanlings brought $750,000-$999,999 in 2007 and none did in Additionally, in 2007 six sold for $500,000-$749,999, while only two sold for that price in Interestingly enough, the three toppriced weanlings were all fillies. In addition to the Bernardini filly, the other two to sell for $500,000 or more are daughters of Distorted Humor out of grade I-producing mares. One is a full sister to multiple grade I winner Commentator, while the other is a half-sister to 2005 champion sprinter Joseph v. Diorio 6222 THE BLOOD-HORSE december 27, 2008

7 North American Weanling Sales Year Gross Revenue Median ,525 $57,066,068 $37,420 $10, ,954 $86,770,649 $44,407 $17, ,022 $100,723,243 $49,814 $17, ,824 $79,737,644 $43,716 $15, ,952 $71,730,989 $36,747 $15, ,728 $68,058,938 $39,386 $12, ,575 $49,061,493 $31,150 $11, ,933 $52,534,780 $27,178 $7, ,346 $83,758,024 $35,702 $10, ,290 $98,109,089 $42,842 $15, ,282 $89,350,261 $39,154 $12, ,106 $67,561,749 $32,081 $12, ,163 $61,083,609 $28,240 $8, ,000 $52,223,042 $26,111 $11, ,897 $41,376,763 $21,811 $8, ,536 $36,244,725 $23,597 $9, ,505 $23,979,536 $15,933 $6, ,430 $29,201,455 $20,420 $6, ,565 $28,406,636 $18,151 $5, ,475 $35,088,817 $23,789 $5, ,362 $21,852,247 $16,044 $3,500 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Median Median '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 Lost in the Fog. They sold for $520,000 and $500,000, respectively. Not surprisingly, this meant Distorted Humor was second on the list of leading sires of auction weanlings by average. Five of his foals sold for an average of $326,000 and a gross of $1,630,000. The highest-priced weanling colt of 2008 is by Indian Charlie. Out of the A.P. Indy mare Fapindy, he sold to Foxtale Farm for $370,000 at the Keeneland November sale, where he was offered by clere Sales, agent. Details of the weanling market s figures and trends in 2008 were as follows: The number of weanlings sold decreased 22%, from 1,954 to 1,525. The gross decreased from $86,770,649 in 2007 to $57,066,068. That is the lowest total gross for weanlings since 2002, when the market was impacted severely by MRLS. The average declined from $44,407 in 2007 to $37,420. That is a decrease of 15.7%. The median went from $17,000 in 2007 to $10,000, a hefty decline of 41.2%. b 2-Year-Olds Before the Fall By Ryan Conley Relative to the other main auction categories, juvenile sales experienced only modest drops I t says something about the year experienced in the 2-year-old public auction market when the top-priced juvenile wasn t even sold at a traditional training sale. While harbored early enough in the year from the world-wide economic turmoil that sent the majority of auctions reeling in the summer and fall, the 2-year-old sale season still saw addition- ers are probably wondering what s in store for them when the 2009 juvenile sale season starts in February. Everyone is going to have to have realistic expectations, said David Scanlon of Scanlon Training Center near Williston, Fla. A lot of our clients bought their babies back (at yearling sales). You want to be realistic in reserve. Acting as agent, Scanlon Training Cenanne m. eberhardt Breeders Cup Juvenile Fillies winner Stardom Bound sold at Fasig-Tipton November al correction from its 2006 peak. Gross dollars realized in 2008 from sale of all 2-year-olds at auction totaled $182,671,515, down 5.4% from 2007, and 15.9% from Fewer juveniles were also sold, with the 2,857 final recorded hammers the lowest since 2002, and the third smallest in the last 20 years. So with hefty drops in most yearling and breeding stock sales, 2-year-old sell- THE BLOOD-HORSE DECEMBER 27,

8 08 Auctions Digest 2-Year-Olds ter sold the highest-price 2-year-old at a juvenile auction in 2008, a $2.1 million son of Street Cry eventually named Desert Party who went on to win the Sanford Stakes (gr. II) for owner Darley Stable. But the year s ultimate 2-year-old saletopper was Stardom Bound, the winner of the Bessemer Trust Breeders Cup Juvenile Fillies (gr. I). A likely champion who was purchased for $5.7 million by IEAH Stables at the Fasig-Tipton Kentucky November select mixed sale, the daughter of Tapit was a $375,000 purchase eight months earlier at the Ocala Breeders Sales Co. March select sale of 2-year-olds in training. In the realm of all-time 2-year-old auction purchases, Stardom Bound s November price tag is second only to the $16 million given in 2006 for The Green Monkey, and, assuming the filly returns to the track next year, supplants the $3 million given for Wild Fit at the 2005 Fasig-Tipton Kentucky November sale as the top price realized for a race-tested juvenile. Despite the drop in total gross receipts, the overall 2008 average ($63,938) increased 3.4% while the median ($20,000) was flat year-over year. But those norms were still off 8.5% and 16.7%, respectively, from the $69,875 average and $24,000 median realized in At the end of the day, you hope your home runs will cover some of the losses, said Scanlon, whose operation was credited in 2008 with selling 30 juveniles for an aggregate $8.11 million, according to The Blood-Horse data. This is what we have to do. We have to march on. Some buyers looked at 2008 as a good time to purchase 2-year-olds in training. Among them was Padua Stables, which signed for 15 juveniles at a collective price of $4.02 million, according to The Blood- Horse data. Satish Sanan, who operates Padua along with his wife Anne, said he and his team decided it was time to jump back into the 2-year-old market after some successful years purchasing horses off the track, including interests in such runners as Any Given Saturday and Curlin. People are changing their strategies constantly, said Sanan, who in 2008 moved the Padua operation to Kentucky from its founding location near Summerfield, Fla. We were successful a couple of years ago buying horses off the track. But it s hard to do that nowadays, particularly in our case, where we are looking for a return on investment. A lot of people are after the same horse. Despite being disappointed that most of his 2-year-olds were injured at some point in the year, Sanan said Padua will return to the juvenile market in We are going to be active; there is no question about it, he said. We have to find the magic bullet in finding horses that haven t been abused. With these early 2-year-olds, whether we like it or not, they start breaking down in August. So we just have to be very careful from a vetting standpoint. Individual auctions produced a mix bag of positives and negatives. Some top auctions had across-the-board declines in gross, average, and median, including: Barretts March (down 32.8%, 19%, and 22.8%), Fasig-Tipton Midlantic (down 19.2%, 13.5%, and 17.7%), and Fasig-Tipton Calder (down 19.5%, 2.2%, and 9%). But OBS saw gains at both its sales in February (up 9.4%, 18%, and 25%) and March (25.8%, 36.6%, and 22%). Keeneland s April sale was down 2% in gross and flat in median, but up 4.3% in average. Despite the promise of a tenuous 2009, Scanlon said sellers must make the necessary adjustments for a sagging economy. We have to march on, he said. This is what we do. It can t be fireworks all of the time. And we know that people still want good horses. b Leading 2-Year-Old s Leading First -Crop 2-Year-Old s Street Cry 3 $160,000 $2,100,000 $811,667 Storm Cat 6 $360,000 $1,500,000 $751,667 Tapit 18 $5,000 $5,700,000 $412,139 Unbridled's Song 10 $90,000 $700,000 $344,000 Elusive Quality 4 $150,000 $750,000 $337,500 Speightstown 20 $9,000 $1,700,000 $309,150 A.P. Indy 4 $60,000 $500,000 $297,500 Seeking the Gold 3 $50,000 $575,000 $275,000 Fusaichi Pegasus 9 $7,000 $1,000,000 $270,889 Seattle Fitz 4 $5,500 $600,000 $263,875 Distorted Humor 7 $20,000 $675,000 $262,143 Silver Deputy 9 $4,000 $800,000 $259,111 Mr. Greeley 10 $5,000 $700,000 $252,700 Sir Cherokee 3 $20,000 $650,000 $245,000 Lion Heart 24 $1,500 $750,000 $187,229 First-crop sire Tapit 18 $5,000 $5,700,000 $412,139 Speightstown 20 $9,000 $1,700,000 $309,150 Seattle Fitz 4 $5,500 $600,000 $263,875 Sir Cherokee 3 $20,000 $650,000 $245,000 Lion Heart 24 $1,500 $750,000 $187,229 Medaglia d Oro 20 $14,000 $900,000 $163,200 Friends Lake 13 $10,000 $450,000 $162,308 Teton Forest 3 $21,000 $200,000 $135,333 Cat Dreams 3 $7,500 $230,000 $115,833 Toccet 18 $3,500 $410,000 $107,194 City Place 16 $6,000 $325,000 $105,313 Smarty Jones 5 $30,000 $165,000 $104,000 Saarland 8 $5,000 $300,000 $102,000 Congaree 15 $3,800 $410,000 $100,853 Pleasantly Perfect 9 $4,500 $380,000 $92,333 Spanish Steps 10 $15,000 $300,000 $89,600 North American 2-Year-Old Sales Year Gross Revenue Median ,857 $182,671,515 $63,938 $20, ,122 $193,075,244 $61,843 $20, ,107 $217,100,214 $69,875 $24, ,137 $190,888,903 $60,851 $22, ,009 $175,336,258 $58,271 $20, ,055 $139,721,364 $45,735 $17, ,726 $130,015,650 $47,695 $18, ,730 $127,275,055 $46,181 $18, ,041 $155,073,937 $50,170 $20, ,980 $156,565,473 $52,539 $20, ,113 $138,127,125 $44,371 $17, ,944 $127,827,960 $43,420 $18, ,942 $117,249,806 $39,853 $15, ,961 $96,063,995 $32,443 $12, ,964 $76,879,449 $25,937 $12, ,951 $60,594,975 $20,533 $9, ,963 $56,328,055 $19,010 $9, ,524 $63,851,436 $18,119 $8,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Median '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 ' THE BLOOD-HORSE december 27, 2008

9 Broodmares time high of $370,099,831 to $257,153,903. The average decreased 17.2%, from the record of $71,187 to $58,913. The median price slipped 12%, from Late Declines By Deirdre B. Biles The weak economy at the end of the auction season drastically affected the price of broodmares T iming worked against the North American broodmare market. The fall months generally are when the best producers are offered and also when the most broodmares are sold. Unfortunately, in 2008, autumn was the season in which the economic crisis here and abroad worsened at a rapid rate, and the demand for the Thoroughbred breeding industry s foal factories dropped off dramatically after generating some recordsetting statistics in While consignors and farm owners were anticipating declines based on a general slowdown in the Thoroughbred market and significant setbacks in the gross revenue and average price during the huge Keeneland September yearling sale, many were surprised at how quickly and deeply the market for broodmares late in the year was affected by negative forces outside the horse business. The declines were sobering. The number of broodmares sold, falling for the second year in a row, dropped 16%, from 5,199 in 2007 to 4,365 in The gross plunged 30.5%, from the all- North American Broodmare Sales anne m. eberhardt $12,500 to $11,000. The gross dropped to its lowest point since the total of $216,248,533 in 2003, when the breeding industry still was recovering from the ravages of mare reproductive loss syndrome (MRLS), which struck Central Kentucky in The average and median were the lowest since the 2005 comparable figures of $58,235 and $10,000, respectively. And the number sold was the lowest since the total of 4,053 in Better Than Honour, the 2007 Kentucky Broodmare of the Year, established a world Better Than Honour s price established a world record for a broodmare record for a broodmare sold at public auction, when she brought $14 million from Mike Moreno s Southern Equine Stables at the Fasig-Tipton Kentucky November select mixed sale. But because of the story behind the transaction, it wasn t really an amazing accomplishment under difficult circumstances. John Sikura of Hill n Dale Farms and Southern Equine owned Better Than Honour in partnership, and she was part of a dispersal of their Thoroughbred holdings. At the time she went through the Fasig-Tipton sale ring, Southern Equine controlled a 70% interest in the 12-year-old mare (who was not in foal) and had a considerable financial advantage over any rivals in the bidding process. Honestly, anybody who bid on her in the early stages probably realized they were bidding for fun because she was going to bring, obviously, a world record for any broodmare that ever went through a sale, said Moreno, who added that Better Than Honour was offered without a reserve. The previous mark for a broodmare was held by English champion Playful Act, who had attracted a $10.5-million winning bid from Sheikh Mohammed s bloodstock manager, John Ferguson, during the 2007 Keeneland November breeding stock sale. Better Than Honour is the secondh i g h e s t - p r i c e d Thoroughbred ever sold at public auction, behind only The Green Monkey, who went for $16 million at the 2006 Fasig-Tipton Florida select sale of 2-yearolds in training. Produced from the 1982 Kentucky Oaks (gr. I) winner Blush With Pride (by Blushing Groom), Better Than Honour scored in the 1998 Demoiselle Stakes (gr. II) and finished second or third in three other added-money events, including the 1999 editions of the Acorn (gr. I) and Mother Goose (gr. I) Stakes. She is the dam of 2006 Belmont Stakes $80,000 Gross Median Year Revenue ,365 $257,153,903 $58,913 $11,000 $70, ,199 $370,099,831 $71,187 $12, ,261 $328,912,274 $62,519 $11,500 $60, ,122 $298,281,368 $58,235 $10, ,092 $289,401,203 $56,834 $9,500 $50, ,866 $216,248,533 $44,441 $7,000 Median $40, ,482 $189,958,851 $42,383 $7, ,815 $183,086,926 $38,024 $6, ,490 $311,141,964 $56,674 $9,000 $30, ,300 $292,701,616 $55,227 $13, ,146 $235,372,530 $45,739 $9,100 $20, ,975 $190,003,690 $38,192 $9, ,872 $155,174,424 $31,850 $6,000 $10, ,766 $123,271,572 $25,864 $5,850 Median ,053 $103,044,302 $25,424 $5,000 $ ,654 $71,453,970 $19,555 $4,500 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 THE BLOOD-HORSE DECEMBER 27,

10 08 Auctions Digest Broodmares (gr. I) winner Jazil (by Seeking the Gold) and 2007 Belmont winner and champion Rags to Riches (by A.P. Indy). Only seven other mares in United States racing history have produced two classic winners, and Better Than Honour is the only one that produced two Belmont winners or back-to-back winners of the same classic race. Southern Equine ended up as the biggest spender among broodmare buyers in North America, paying $24,745,000 for 13 horses. In addition to Better Than Honour, the broodmares purchased by Moreno out of the Southern Equine/Sikura dispersal at the Fasig-Tipton Kentucky auction were Crystal Current (in foal to Distorted Humor) for $3.1 million; Point Ashley (in foal to Distorted Humor), for $1.4 million; Sensation (in foal to A.P. Indy) for $1.1 million; and Last Song (in foal to Distorted Humor) for $1 million. Moreno also bought Surprises Welcomed, who was consigned as a racing or broodmare prospect, from the dispersal for $2.5 million. Distorted Humor, who stands at Bill Casner and Kenny Troutt s WinStar Farm in Kentucky, was the leading covering sire of broodmares (with three or more mares sold). Four mares carrying his foals Top Covering Stallions of 2008 Ranked by (with three or more mares sold at auction) Horse Gross Distorted Humor 4 $7,000,000 $1,750,000 A.P. Indy 7 $10,950,000 $1,564,286 Unbridled s Song 7 $5,670,000 $810,000 Bernardini 8 $5,930,000 $741,250 Pulpit 7 $3,995,000 $570,714 Mr. Greeley 14 $7,710,000 $550,714 Giant s Causeway 11 $5,785,000 $525,909 Ghostzapper 14 $6,265,000 $447,500 Hard Spun 14 $4,992,000 $356,571 Street Sense 9 $2,900,000 $322,222 Empire Maker 12 $3,665,000 $305,417 Smart Strike 12 $3,590,000 $299,167 Street Cry 8 $2,305,000 $288,125 Awesome Again 6 $1,640,000 $273,333 Indian Charlie 10 $2,102,000 $210,200 Bluegrass Cat 20 $3,562,000 $178,100 Harlan s Holiday 17 $3,016,000 $177,412 Corinthian 14 $2,449,000 $174,929 Invasor 6 $969,000 $161,500 First-crop sire Top First-Crop Covering Stallions of 2008 Ranked by (with three or more mares sold at auction) Horse Gross Hard Spun 14 $4,992,000 $356,571 Street Sense 9 $2,900,000 $322,222 Corinthian 14 $2,449,000 $174,929 Invasor 6 $969,000 $161,500 Any Given Saturday 10 $1,036,000 $103,600 Half Ours 8 $809,000 $101,125 Discreet Cat 22 $1,707,000 $77,591 After Market 11 $757,000 $68,818 Scat Daddy 9 $428,000 $47,556 English Channel 7 $329,500 $47,071 Lawyer Ron 12 $556,000 $46,333 Master Command 14 $576,000 $41,143 Stevie Wonderboy 7 $205,500 $29,357 Latent Heat 9 $227,200 $25,244 Bob and John 12 $288,000 $24,000 Sunriver 4 $95,700 $23,925 Shakespeare 6 $129,000 $21,500 Political Force 7 $136,000 $19,429 Free Thinking 3 $57,200 $19,067 Easing Along 5 $95,000 $19,000 brought an average price of $1,750,000. A.P. Indy, who stands at Will Farish s Lane s End Farm in Kentucky and ranked first in 2007, was second on the list, with seven mares averaging $1,564,286. Hard Spun, who stands at Sheikh Mohammed s Darley operation in Kentucky, was the leading first-crop covering sire, with 14 mares in foal to him sold for an average of $356,571. Street Sense, another Darley stallion, ranked second with nine mares sold for an average of $322,222. b Pinhooking Mixing It Up By Deirdre B. Biles Although pinhookers did not see increased profits, their rate of return held steady from 2007 T he 2008 Thoroughbred selling season won t be remembered as a high point in pinhooking history. The people who resell horses they have purchased previously didn t rack up the huge profits they had enjoyed in the past. But they did manage to stop the downturns they suffered in 2007 on their rate Pinhooking home run Desert Party won the Sanford Stakes of return (ROR) on investment. The ROR for yearling-to-juvenile pinhookers rose to 82% even though The Blood-Horse increased their cost of upkeep, per horse, from $10,000 to $18,000 in its calculation. The ROR in 2007 was 79%, which was the lowest for the statistic that had been reported since The Blood- Horse began including sale company commissions in its calculation in Meanwhile, the ROR for weanling-toyearling pinhookers remained at 33%, Adam Coglianese 6226 THE BLOOD-HORSE december 27, 2008

11 08 Auctions Digest Pinhooking which was the lowest point for the figure since The Blood-Horse started tracking their financial performance in To analyze the fortunes of yearling-tojuvenile pinhookers, The Blood-Horse uses the results of the Ocala Breeders Sales Co. (OBS) February, Fasig-Tipton Florida, Barretts March, OBS March, and Keeneland April select sales of 2-year-olds. Pinhookers participating in those auctions reduced their inventory, and it brought the supply back more in line with demand. The number of pinhooked juveniles offered declined 14.6%, from 754 in 2007 to 2008 s total of 644, which represented the smallest total since 621 were offered in Other business trends: The number of pinhooked horses sold fell 8.9%, from 459 to 418, the lowest figure 2008 Pinhooking Results by Yearling Sale - Table 1a since 379 in The average price pinhookers paid for their stock as yearlings fell 1.2%, from the all-time high of $92,317 to $91,254. The average juvenile resale price increased 8.4%, from $193,037 to its highest point ever of $209,289. The former record, set in 2006, was $209,199. The percentage of pinhooked horses that made money for their sellers increased from 46% to 47%. The buy-back rate declined from 39% to 35%. No fewer than 16 pinhooked horses were resold as juveniles for amounts that exceeded their 2007 yearling purchase prices by $500,000 or more, a total that was up from 15 in A Street Cry Sage Cat colt provided the select juvenile selling season s biggest pinhooking score. His juvenile resale price of $2.1 million was $1,675,000 more than Sale Offered RNA % % Profitable % Unprofitable % WNLG AVG YRLG AVG *ROR FTK July % % % % $50,159 $106,659 80% Saratoga Select % % % % $189,900 $285,000 38% Keeneland Sept % % % % $64,410 $94,013 28% OBS Open % % % % $8,387 $12,477-18% OBS Select % % % % $26,420 $52,740 55% Totals 1, % % % % $57,735 $88,891 33% 2008 Pinhooking Results by Weanling Range - Table 1b PRICE range Offered RNA % % Profitable % Unprofitable % WNLG AVG YRLG AVG *ROR $0-$4, % % % % $3,213 $11,749 21% $5,000-$9, % % % % $7,997 $24,032 63% $10,000-$19, % % % % $16,419 $26,084 11% $20,000-$29, % % % % $26,200 $45,471 35% $30,000-$39, % % % % $36,440 $66,780 50% $40,000-$49, % % % % $46,321 $71,409 30% $50,000-$74, % % % % $64,531 $103,630 40% $75,000-$99, % % % % $88,151 $133,321 35% $100,000-and up % % % % $190,227 $265,991 29% Totals 1, % % % % $57,735 $88,891 33% 2008 Pinhooking Results by 2-Year-Old Sale - Table 2a Sale Offered RNA % % Profitable % Unprofitable % YRLG AVG 2YO AVG *ROR OBS February % % % % $75,869 $161,475 63% Fasig-Tipton Feb % % % % $163,500 $385, % Barretts March % % % % $82,408 $181,433 72% OBS March % % % % $60,480 $147,029 78% Keeneland April % % % % $119,617 $252,426 75% Totals % % % % $91,254 $209,289 82% 2008 Pinhooking Results by Yearling Range - Table 2b PRICE range Offered RNA % % Profitable % Unprofitable % YRLG AVG 2YO AVG *ROR $0-$19, % % % % $13,000 $53,176 63% $20,000-$29, % % % % $23,325 $114, % $30,000-$39, % % % % $33,667 $112, % $40,000-$49, % % % % $43,263 $121,974 89% $50,000-$74, % % % % $59,091 $172, % $75,000-$99, % % % % $83,153 $180,237 69% $100,000-$199, % % % % $133,070 $260,130 64% $200, % % % % $287,027 $573,108 79% Totals % % % % $91,254 $209,289 82% *ROR Rate of return on investment. Calculated after including 4.5% sales commission for Keeneland and 5% commission for other auction companies, and $10,000 cost of breaking and training for 2-year-olds. For weanling-to-yearling pinhooks, cost of maintenance is $6,000. his yearling purchase price of $425,000. Hidden Brook, as agent for Paul Pompa Jr., bought the colt at the Keeneland September yearling sale, and he was resold by Scanlon Training Center, agent, to Sheikh Mohammed s bloodstock manager, John Ferguson, at the Fasig-Tipton Florida select juvenile auction. Subsequently named Desert Party, the colt scored in the Sanford Stakes (gr. II) at Saratoga. Weanling-to-yearling pinhookers relied on a slightly different strategy than the one used by their yearling-to-juvenile counterparts. In addition to reducing the number of horses they offered, they spent more money than ever before to acquire their stock, emphasizing quality. Pinhookers purchased weanlings or short yearlings for an average of $57,735, eclipsing the former all-time high of $56,454 established in Then they resold those horses for an average of $88,891, which was up 2.2% from the comparable 2007 figure, suggesting pinhookers did a pretty good job in selecting prospects that appealed to buyers. The Blood-Horse statistics for weanling-to-yearling pinhookers are compiled using results from the Fasig-Tipton July select, Fasig-Tipton Saratoga select, Keeneland September, and OBS yearling auctions. In the years prior to 2003, the numbers included the results of the Keeneland July select yearling sale, which is no longer being conducted. The other trends for 2008 included the following: The number of yearlings offered by pinhookers fell 14.7%, from 1,210 in 2007 to 1,032. The number sold dropped 16.1%, from 867 to 727. The buy-back rate increased from 28% to 30%. Thirty-six percent of the pinhooked yearlings offered in 2008 were profitable compared to 38% in Four pinhooked yearlings sold for amounts that exceeded their original purchase prices by $500,000 or more in There was only one in 2008, a Mr. Greeley Chinoe Road colt, whose value rose by $655,000. Crone Stud bought him for $220,000 at the 2007 Keeneland November breeding stock auction. The sales division of Gainesway Farm, as agent, resold the colt for $875,000 to Zayat Stables during the 2008 Keeneland September yearling sale. b 6228 THE BLOOD-HORSE december 27, 2008