Remarkable Keeneland September Sale Wraps With Records

A record-breaking edition of the Keeneland September Yearling Sale drew to a close Sept. 24 in Lexington, leaving the storied sales company, breeders, consignors, and buyers alike marveling at a market that has gone from strength to strength all season.

Keeneland reported a $130,698 average, a $65,000 median, and an RNA rate of 19.01% that all set records, while gross figures of $364,516,500 (including post-sale receipts) drew near to the bull market of 2019 and the $372,348,400 gross achieved then.

The sale average bettered the $129,331 record set in 2018, while the median soared past the $57,000 mark set in 2017. The RNA rate surpassed the 19.2% figure set in 2012. 

Cumulatively, 2,789 horses sold across 11 sessions, with just 510 horses failing to sell. BloodHorse statistics in line with current Keeneland numbers show the RNA rate that includes post-sale receipts to be sitting at 15.5%. Keeneland continues to update its statistics with post-sale purchases, which can cause later changes in overall numbers.

It was a remarkable rebound from the pandemic year of 2020, when 2,481 yearlings sold for a total of $248,978,700, a $100,354 average, and a $37,000 median with a 29.29% buy-back rate. The sale surpassed the gross of the entire 12-session sale in 2020 just six days in this year.  

"Thanks to all our breeders, consignors and buyers, whose passion for racing clearly showed through these past two weeks," Keeneland president and CEO Shannon Arvin said. "This September Sale felt completely different from any other in recent memory—lots of hustle and bustle. We elevated our hospitality throughout the sale, with a particular focus on the first two days, to create excitement and anticipation. We worked to set the tone and stage. Our breeders and consignors delivered high-quality bloodstock, and the buyers responded fervently.

"People are emerging from the pandemic with a renewed sense of vitality, and they are ready to have fun. That positivity, coupled with the increased prize money available at tracks around the country, created a pent-up demand for racehorses coming into the sale. We were thrilled to see lots of happy buyers and consignors."

"This sale exceeded expectations in nearly every measure," Keeneland vice president of sales Tony Lacy said. "The positive takeaways are very encouraging. The level of confidence across the spectrum of the industry is extremely high. The clearance rate has been very healthy, especially in the middle market. The strength of the young sires has been remarkable and shows excitement for the next generation. The diversity of buyers and the spread of equity among them are broad and deep. We're seeing a lot of new faces and new money, and these people are excited about their participation."

Keeneland made several adjustments to the format this September that were well received by consignors and buyers. Kicking off Sept. 13, the first week was structured so Books 1 and 2, consisting of two sessions each, were held on four consecutive days before the sale took a one-day hiatus. As a result, 1,102 yearlings were cataloged to be presented to buyers in that span. Keeneland also combined the final two sessions (those horses originally cataloged to Sessions 11 and 12) into a single session to conclude the sale during a three-day Book 5. Both changes were made to present a critical mass of horses to buyers.

"Having 1,100 horses on the grounds before the dark day (Sept. 17) was something that, combined with the new atmosphere, helped to create the energy at the start of the sales. The music, champagne, and various things that were being passed around really worked in the sense that it kicked the sale off in a positive way with a lot of momentum," Cormac Breathnach, Keeneland's director of sales operations, added at the close of the sale Friday.

"Several buyers commented on (how) they appreciated the number of horses available, the critical mass of horses to look at," he added. "They felt like the dark day offered time to get ahead, so they weren't playing catch up. This year we were able to have a lot of horses on the grounds and in a way that buyers could get through and evaluate them, take their notes, and not miss any. So from that point of view, I think the format was tremendously successful. This year, it's a factor in the strength of the sale."

"Whatever works best for the buyers is exactly what we should be doing. I think Keeneland believes that and has taken that to heart," Bret Jones of Airdrie Stud said. "I haven't heard any complaints, frankly, about the format. We have certainly had enough time to show horses, and I feel like the buyers have had enough time to look at the horses. I think these results are a reflection of that." 

With Lacy and Breathnach installed in their new roles earlier this season upon the retirement of longtime sales director Geoffrey Russell, the two saw their hopes fulfilled—and then surpassed.

"That was the hope…that we would return like last year essentially never happened," Breathnach said. "Last year was a good sale for the time that we were living in. But this year is a massive return to a vibrant market.

"The biggest positive, maybe, along the lines of being a surprise, is the clearance rate. The clearance rate is outstanding. There are a lot of happy sellers and breeders out there, and that's a great sign for the industry."

A deep buying bench consisted of domestic buyers along with returning international buyers from 27 countries such as England, Ireland, France, Japan, China, Australia, Hong Kong, Peru, Argentina, United Arab Emirates, Russia, and Singapore. 

In a continuation seen from last year, internet bidding continued to be popular with 135 yearlings sold via that format for gross receipts of $19,206,500, according to Keeneland. In 2020, Keeneland reported 126 horses sold for a total of $12,165,900. 

Fifteen Horses Soar to Seven Figures

Fifteen horses sold for $1 million or above, collectively, from Books 1 and 2, by top sires American Pharoah  , City of Light  , Curlin  , Into Mischief  , Justify  , Tapit  , Uncle Mo  , Quality Road  , Street Sense  , and War Front  . Those 15 seven-figure horses were purchased by 13 distinct entities.

Topping the sale was a $1.7 million colt by first-crop sire City of Light consigned as Hip 612 by breeder Rosilyn Polan of Sunday Morning Farm. Purchased by a racing partnership between Woodford Racing, Talla Racing, and West Point Thoroughbreds, the colt is out of the stakes-placed Tapit mare Anchorage , who is also the dam of grade 3-placed Chip Leader. 

Woodford and West Point joined to purchase the second-highest price of the sale, a $1.6 million Quality Road colt consigned by Eaton Sales as agent for Stonestreet Bred & Raised. West Point and Talla Racing also went to $1.55 million for a Justify colt bred and offered by Stonehaven Steadings. 

"Partnerships were very dominant in the market, and they hugely benefited this sale," Lacy said. "While they may take away the $3-$4 million horse, partnerships spread the money among buyers and allows investors to spread their risk. They also enable people to have fun in a more affordable way. And by bringing more people into the sport, they create a fan base."   

American Pharoah sired the auction's highest-priced filly, who sold for $1.4 million to Northshore Bloodstock, agent. Consigned by Betz Thoroughbreds, agent, as Hip 43, the filly out of the Menifee mare Letgomyecho is a half sister to undefeated Echo Zulu , who captured the Spinaway Stakes (G1) at Saratoga Race Course eight days prior to the sale. 

The number of seven-figure horses matched the amount to attain that status in 2020. In 2019, there were 22 that cleared that mark, including seven sold for more than $2 million, topped by an $8.2 million filly and a $4.1 million colt.

"The market is probably the strongest we've seen here in the last 15, 20 years—just in depth of the buying bench and quality of the prices," said Aidan O'Meara, director of bloodstock and client development for Stonehaven Steadings. "We've never been as busy at the barns with the number and intensity of the buyers and the number of shows. The amount of back ring action in the past couple of days has been astonishing. We were very fortunate with a couple of big touches, but the market held all the way through until the last one we just sold."

Into Mischief, West, Taylor Made Stand Out

Spendthrift Farm's incomparable Into Mischief was the leading sire of the sale for the second consecutive year, with 62 yearlings sold for a $418,823 average and gross receipts of $25,967,000. Two first-crop sires followed, with 2018 Triple Crown winner Justify represented by 61 yearlings sold for a $367,721 average and total receipts of $22,431,721, and City of Light represented by 47 sold for a $372,872 average and $17,525,000 in gross.

Sheikh Mohammed bin Rashid Al Maktoum's Godolphin operation and his late brother Sheikh Hamdan's Shadwell Estate Co. were leading buyers at this sale in 2018 and 2019, but in their absence this year, domestic buyers joined up to fill the gap. The partnership of Repole Stable and St. Elias Stable, represented by Jacob West of West Bloodstock, was the sale's leading buyer with 43 head acquired for gross receipts of $16,045,000, with an average of $373,140. Next came "The Avengers," SF Bloodstock, Starlight Racing, and Madaket Stables, which took home 24 horses for $10,590,000 and a $441,250 average with the assistance of agent Donato Lanni. Agent Mike Ryan put in the miles as well, purchasing 30 for various clients for gross receipts of $10,590.000 and a $353,000 average. 

"The domestic end-user activity was sensational," Breathnach said. "It's been great to see them step up in such a big way. It's encouraging that as an industry we're able to maintain strong growth while we're missing some historically significant players."

For the seventh year in a row and the 23rd time since 1988, Taylor Made Sales Agency was the sale's leading consignor with 304 horses sold for $37,306,500, boasting an average price of $122,719.

Industry Resurgence Felt by Many

"It's been a great sale—nobody can deny that," said Peter O'Callaghan of Woods Edge Farm, who sold all but one horse in his consignment, which was highlighted by a $1.05 million colt by City of Light purchased by West Bloodstock, agent for Repole Stable and St. Elias.

"(The sale is) the best it's been in quite some time. I don't think it's an accident, either," O'Callaghan added. "Horse racing did a great job going through COVID and got a lot of new eyes on the game, a lot of new bettors in the game. Handles were going up everywhere. Prize money is exploding. People are recognizing that. They know it really makes sense to own a racehorse in this country. You can make money, you can pay your way. If you win a nice race at a prominent track, you can almost pay your training fees for the year. It's great, and long may it continue."

Brian Graves, General Manager of Gainesway, the sale's second-leading consignor that sold 131 horses for $30,120,000 concurred.

"I thought (the sale) would pick up steam as the books went, and it did," Graves said. "The middle market has been the strongest part of the market for horses all year long, and (the September Sale) just proved that there's a lot of people in the middle. There's a good stable, solid domestic market out there right now, and that's good for all of us."

The success Keeneland saw this year is no surprise; the Thoroughbred industry is small but filled with people who ultimately got in the game for one reason.

"Maybe it's reassuring that we're not all crazy for loving this game as much as we do, and there are more people like us that love it so much," Price Bell Jr. of Mill Ridge Sales said. "I believe everybody is here for the same reasons. We like it, love horses, competition, we love thinking that we've got an opportunity, putting your thesis up against someone else's, and seeing who gets to the finish line first. Purse structure across the country is very favorable. Still, I think more than anything else, people enjoy horses and the business, and it's a matter of just getting more people to experiment and enjoy it."

Quality was spread throughout the entire sale, with prominent Hall of Fame trainers still scoping out contenders well into Book 5.

"When you see the likes of Steve Asmussen, Mark Casse, quite a few of the top trainers still here buying horses (on the second day of Book 5), I think that's encouraging," Lacy said. "I think that what we've got to emphasize is the fact that the quality is through the books. You look up, and there's another one bringing $50,000-$52,000. A lot of people felt like Book 5 was going to be a lesser sale, quite honestly, but as we were creating the structure for the books a couple of months ago, you could see the quality that was flowing all the way through; I think by pulling those two sessions together and creating one combined session has satisfied sellers. It's certainly what the buyers need, and it helps us to condense the sale in a way that flows." 

Silent Name Filly Tops Final Session

During Friday's final session, 244 yearlings sold for $3,937,500, an average of $16,137, and a median of $12,000. The 12 horses that did not meet their reserve represented a RNA rate of 4.7%. Hidden Brook consigned the top-priced youngster of the day, a $120,000 filly by Silent Name   purchased by Bill and Anne Scott. Marette Farrell signed the ticket.

The filly reminded bloodstock agent Farrell of grade 2 stakes-winning Summer Sunday , by Silent Name, a filly Scott campaigned to be the 2019 Sovereign Award champion female sprinter. Hip 3807 will follow down the same path and ship to Canada to be trained by Stuart Simon.

"Stuart Simon's had a lot of good horses over the years, a wonderful man, and loves the business," Farrell said. "We were fond of this filly. Never expected to have to pay this kind of money, but the Canadian program is very strong, the purses are amazing. Bill Scott is a longtime supporter of Stuart's. He wanted this filly, loves the pedigree and breeding." 

Onward to November

Keeneland's next auction will be held Nov. 10-21 with the November Breeding Stock Sale offering broodmares, racing/broodmare prospects, stallion prospects, and weanlings. Horses of racing age and supplemental Book 1 entries are currently still being accepted.

"I think it's necessary because it takes (away) the constrained aspect of an early entry date for horses of racing age," Lacy said of accepting entries past the original Aug. 2 deadline. "Quite honestly, in early August, most owners don't know what they've got yet, so allowing the flexibility to enter later, also allowing us to be able to place them in a section of the sale where we can expand it, so it's more representative of the horses."

Lacy said accepting entries past the Aug. 2 deadline will allow Keeneland to "construct a catalog that has got all the updated information for buyers to be able to make an educated and informed decision on the product that's there.

"The potential sellers are extremely excited about it because it allows them to have an outlet for some horses that may not fit their program at that stage," he added.