Anticipation High Ahead of Fasig-Tipton Select Sale

Sunshine had barely broken the horizon in Lexington the morning of Sept. 8 when the barn area at Fasig-Tipton's Newtown Pike headquarters was bustling with buyers inspecting the youngsters entered in the upcoming Selected Yearlings Showcase.

Scheduled for Sept. 9-10, with sessions beginning at 10 a.m. ET daily, the auction is new to the sale calendar, effectively replacing three Fasig-Tipton sales canceled due to the effects of the COVID-19 pandemic—The July Sale, the Kentucky selected yearling sale; The Saratoga Sale, Fasig-Tipton's selected yearling sale in New York; and the Saratoga Preferred New York-Bred Yearling Sale.

The latter two sales are held annually in August in Saratoga Springs, N.Y., in an atmosphere energized by the boutique race meet at historic Saratoga Race Course, but were unable to take place this year due to travel restrictions and other concerns associated with the novel coronavirus.

Instead, Fasig-Tipton put together a two-day catalog with 662 entries, selected on the basis of physical presence, strength of pedigree, and sire quality. Included are full or half siblings to six champions, as well as future racing prospects well-related to other major performers at the highest levels of international racing.

"There are a lot of nice horses on the grounds and a lot of quality buyers and plenty of them here," said Fasig-Tipton president Boyd Browning Jr. "I'm very optimistic. We're encouraged with the level of activity."

The sale, as is the Keeneland September Yearling Sale scheduled for Sept. 13-25, is being conducted with a variety of safety protocols associated with the pandemic in place. Most sale participants are required to have a negative COVID-19 test and complete a health screening before being credentialed to attend the sale.

Working together, the two sales companies offered on-site COVID-19 testing during certain days leading up to the auctions, and upon arrival each day all attendees submit to temperature checks. Although buyers are not required to present a negative COVID-19 test result, they can get tested upon request (subject to availability) and are subjected to the daily temperature checks and health questions.

Walking the Fasig-Tipton grounds, it's abundantly clear that these are not normal times for a horse sale. Masks are required and there is no shortage of signage reminding of social distancing and other health measures to help diminish spread of the coronavirus. Several large tents have been set up on the grounds to provide space to sit or meet not in an enclosed environment.

While the beginning of the yearling sale season has been delayed—The July Sale is usually the first of the year—in many ways this year's auction will mirror others in recent years, according to Browning.

"We're used to batting leadoff," he said. "It's not an unusual position for us. It's the same old story. The quality is going to sell and hopefully we've got a lot of quality. People are demanding quality, whether it's horses, whether it's real estate, or automobiles. Based on what I've seen we have a very strong group of horses so I'm encouraged."

Given the likelihood that some regular buyers will be unable or disinclined to attend, including those from foreign countries and states that have placed travel restrictions on residents or some with concerns about being in a public place, Fasig-Tipton has promoted its expanded bidding options, including online and telephone bidding, along with enhancing the tools potential buyers can use to make off-site evaluations of the offerings.

"You try to do everything you can and you play the cards that you're dealt," Browning said. "I'm speaking from the positivity viewpoint that if there are some people who are unable to be here it might create opportunities for others. We always see some transition and movement in the buying base from year to year based on individuals' circumstances. If you look at our 2019 yearling results there is no hint of it being dependent on any one buyer or any one group of buyers. We're proud of the fact our sale graduates have performed very well in America and around the world. We have quality offerings whether you want to race in America, race in Europe, or race in Japan."

There is general consensus that the market will be off the 2019 levels for the three sales, in which 523 horses changed hands (from 919 total cataloged) for gross receipts of $90.4 million and a combined average of $172,788.

While there is uncertainty over what the buyer base will look like, pluses going into the yearling sales season are the overall health of the U.S. economy and continued viability of horse racing in the U.S. and abroad.

"I think it's really just impossible to prognosticate what's going to happen," said consignor Craig Bandoroff of Denali Stud. "Our activity level is good. Saratoga is special, but one of the things that makes Saratoga special is good horses, so we put some of those good horses in here. We know it doesn't take Saratoga to sell good horses. I think we just have to be grateful that racing has been going on and that we're going to have a venue for trade to take place. And I think trade taking place is huge. At what level is trade going to take place? My crystal ball is not that good. Absolutely we want to sell horses. We're just farmers and this is our crop."

Jacob West of West Bloodstock said some buyers may be correct when they see the uncertainties going into this year's sale season as presenting a buyers' market, but the quality offerings will still command a high price. 

"I think at the end of the day, and we saw this in the 2-year-old market, a good horse still sold well. I think the economy affected a certain level of person, but not all people. There were winners in this economy so there are people that have money, that are willing to spend, and that are in the horse industry. So I think that the level of expectation is that they're hoping to get a bargain, but if it's the right horse it's still going to bring enough money.

"I think it just goes back to the domestic buying bench," West added. "We all want the same thing. We all want a good-looking horse that moves well, that has enough pedigree, and is a top physical on the end of the shank. So if whether that's here at Fasig-Tipton or over at Keeneland, we're all going to hone in on the same thing. And I expect those horses to bring a premium and we will see a significant fall off after what 'the public deems is top quality.'"

"My gut feeling tells me that we're going to be down across the board in the low 20% to low 30%," said Mark Taylor of Taylor Made Sales Agency. "But at 20%-30% off, that is a lot for a lot of people. If you bought weanlings on a pretty good market last year when you might have had to pay retail, you're going to get hurt.

"But, if you've got the right horse that looks like it can take you to the right places, then the market might not be down at all," Taylor continued. "There are some big faces that are not going to be here. That's my gut feeling. Hopefully, they'll have boots on the ground, but it's hard to replicate what happens in years where you've had Sheikh Mohammed and Sheikh Hamdan both at the sales in person. They have a huge impact. That in and of itself is going to lower the bar."

With concerns over social distancing and in an attempt to decrease the congestion that can sometimes create a traffic jam at the sale barns, Taylor Made is experimenting with allowing buyers to make reservations to inspect prospective purchases.

"Our consignments typically have more horses than most consignors, but it can create a lot of congestion," Taylor said. "We are trying to provide a better experience for the men and women that are buying and looking at horses, and to make it as safe as possible."

Reservation showing was used only during the morning of Sept. 7, the first day of showing at Fasig-Tipton, and is scheduled at Keeneland on Friday, Sept. 11. At Fasig-Tipton, each person or team with a reservation was assigned to one of the 12 showing rings, with the prospective purchases then brought out for inspection.

While the reservation concept has been introduced due to social distancing concerns, Taylor believes it could be utilized in normal circumstances, providing a more efficient inspection process.

"So what we're trying is an experiment that I think in the future could become like Open Table is for restaurants," Taylor said. "Every consignor would run more seamlessly if the buyer could chart out their route through the sales grounds and they had scheduled appointments and they knew they had to stay on pace to get them.

"We're trying to think outside the box. Is it going to be perfect?  No. But what we're trying to do is be innovative. A lot of the stuff that goes on around the sales grounds now at one point was a Taylor Made experiment and it got adopted as a best practice. For example, there are a lot of people doing Express Lanes now, which we started 10-12 years ago."

The Fasig-Tipton sale will also be the first auction for newly-formed Machmer Hall Sales, a sales consignment operation of Machmer Hall Farm focusing specifically on yearling sales in North America. Machmer Hall owners Sandy Fubini and Craig and Carrie Brogden, along with Amy Bunt and Mullikin Thoroughbreds, are the principals of the new company, which has 20 yearlings entered in the Fasig-Tipton sale and a larger group at Keeneland.