Magic Millions Sets Off Strong Australasian Sale Season

Magic Millions has set the bar high for the Australasian bloodstock market in 2020 after completing the highest-grossing yearling sale in the Southern Hemisphere for the third consecutive year.

The auction house can lay claim to the record result after the Book 2 session of the Magic Millions Gold Coast Yearling Sale ended late Jan. 12. A total of 128 horses were sold, headlined by an AU$370,000 (US$255,661) Iffraaj colt. Book 2 averaged AU$77,906 with an aggregate of AU$9.972 million. 

The question now is: Can the demand for horses be maintained through the multitude of sales, starting with the New Zealand Bloodstock Karaka Yearling Sale in two weeks? 

In the lead-up to the sale, both publicly and privately, industry figures—including breeders, vendors, agents, and syndicators—expressed the view that this year's Gold Coast Yearling Sale could fall off the 2019 record.  

Most suggested it was likely to come back by about 5% or remain on par if all went well. A 20% decline was not completely dismissed when the discussion was raised during early inspections.

But, like the winning post, the fall of the hammer is the real indicator, and the buyers spoke, leading to 709 Book 1 yearlings finding new homes for an aggregate of AU$177,407,000, up 4.6%.

The average of AU$252,221 ($152,840), which was up from AU$239,809 on the 2019 sale, saw an increase of 5.17%, while this metric broke the AU$250,000 barrier for the first time. The AU$180,000 ($109,734) median was also up AU$10,000 year on year.

Foote: Buyers Key, Not Catalog

Respected bloodstock agent John Foote said it was buyers' willingness to spend at the first yearling sale of the year, rather than the quality of the catalog, that led to an increase.

He said: "I don't think the catalog was any better, and there were a lot of first-season sires. You would think that would bring it back a little bit, but it doesn't. They buy them anyway.

"I think a lot of the trainers and owners have targeted this sale more than they have in the past. Everyone targets this sale, but they have even more so this year. There were also more syndicates put together, more trainers and groups together." 

The figures achieved on the Gold Coast came despite the absence of several key players, including Shadwell, American Jon Kelly, Damion Flower, and Phoenix Thoroughbreds.

The Hawkes Racing operation of Michael, John, and Wayne Hawkes bought 20 yearlings, including the AU$1.8 million son of Exceed And Excel, for an aggregate spend of AU$8.05 million. Among their haul was the AU$280,000 ($193,133) Exosphere colt from the Torryburn Stud draft in Book 2.

The backing of a committed group of clients has allowed the stable to walk away as the leading buyer at the sale, according to Wayne Hawkes. 

"Everyone would love to do it, but we had a great year last year with horses like Exceedance and Brutal," Hawkes said.

"If you don't have the clients, you're not going to be here buying the horses. You're only as good as your clients let you be, so we're very thankful we have a great bunch of very loyal clients." 

Gollan's Frank Assessment

Leading Queensland trainer Tony Gollan, who is advised by Foote, bought eight yearlings this past week. They ranged from AU$110,000 to AU$500,000 for a total of AU$2.3 million.

Gollan was blunt about the depth of the market, saying: "I'd rather be a breeder than a buyer. It's been a strong sale, but I think we've bought well. We bought well early, and it has been held all week. It's been tough, but we've bought some nice horses and we're happy with what we got."

The strength of the market showed no signs of slowing down during Sunday's smaller Book 2 catalog of 177 horses, highlighting how buyers in the low-to-middle bracket—shut out for the most part of the four-day Book 1 auction—were keen to get in on the action.

"There was a huge craving for quality horses today. I thought the vendors supported the sale with particularly good types this year," Magic Millions managing director Barry Bowditch said. 

"The team has obviously selected the catalog on type, and to have an increase of over AU$15,000 on average is an outstanding result in this market."  

Orbis Bloodstock's Paul King, who went to AU$370,000 to secure the Iffraaj colt from the Willow Park Stud draft, said the organization planned to be active at the upcoming yearling sales.

"There are plenty of sales coming up, and so we have had to limit ourselves to what we want to take now," King said. "We've got Easter, Premier, and the Classic Sale coming up as well."

Orbis Bloodstock signed for four yearlings for a total of AU$1.04 million on the Gold Coast.