Sire power, mare youth drives Lexington catalog that is one of the best ever
David Reid said it’s a great time to buy horses thanks to favorable U.S. tax rules, strong purses, and a variety of excellent jurisdictional programs.
by Dave Briggs
In recent years, it’s been common for industry insiders to declare that that Lexington Selected Yearling Sale catalog is the “best ever.”
David Reid, the co-manager of the sale that begins Monday night (Sept. 29) at the Fasig-Tipton Sales Pavilion and runs through Friday (Oct. 3), is usually reticent to predict sale results, but he is fairly confident this year’s sale features, “one of the best books ever.” He said it all starts with sire power.
“It think it’s the strongest book we’ve ever had as far as sire power is concerned,” said Reid, who manages the sale with Bruce Brinkerhoff. “That’s a combination between the proven sires and the first crop sires and the second crop sires. It’s also a combination of the youth of the overall catalog and then the multi-jurisdiction eligibles are higher in our sale, by average, than any other sale, so it’s the diversification.
“If you’re looking to compete at the top level in New York, New Jersey, Massachusetts, Ontario, Pennsylvania, Ohio, we have all the top sires. We have great representation for that.
“Part of the reason why I say it is our best catalog is because of the diversity and the strength and the power of the sires, and then the youth of the dams for the overall sale.”
Last year, the sale recorded its second-best gross and average in history. In all, the 910 yearlings sold over the five days produced a total gross of $65,704,700 and an average of $72,203. The median was $40,000 and 187 yearlings sold for $100,000 or more, down from both 2023 (233) and 2022 (196). Last year’s gross was behind only the $67,916,300 set in 2023 when the auction set 12 records. It’s important to note 38 fewer horses were sold in 2024 compared to 2023.
Prior to last year, the sale gross had gone up three straight years from $43.5 million in the pandemic year of 2020 to $56.7 million in 2021, to $65.3 million in 2022 and then to the record of $67.9 million in 2023. The sale gross has increased in nine of the last 11 years and has grown 140 per cent from a gross of $27.4 million in 2013 to $65.7 million last year.
The sale average has followed a similar trajectory. It has grown from $27.4 million in 2013 to $65.7 million last year.
Reid travels the continent every year to inspect yearlings for the sale and he said what’s changed in recent years is breeders everywhere are doing a better job raising and preparing their horses for the sale.
“I think the breed is becoming… a more uniform group when you go out there, meaning the breeders are doing a better job raising them,” Reid said. “The pedigrees are probably improving. So, I would say, those two things — the breed is improving and the breeder have improved over the last 10 years or so.”
Yet, when it comes to the increasing prices those yearlings fetch in the ring, Reid said there’s more to it than just better breeding, raising and prepping horses for the sale. Reid said the price those horses bring at auction is more related to purse levels and the growth of jurisdictional programs.
“The price, I feel, is directly related to earning potential, and that would come from purses from all the jurisdictions,” Reid said. “So, I think the purse money that they can race for and the number of jurisdictions that have seen growth, such as Ohio, Kentucky… They have added to the other good programs that now there’s more venues to race for at a higher level, and by having more race dates at other jurisdictions, certain jurisdictions are maybe not as crowded.
“I think the Kentucky-eligible angle, for example, may pull horses out of Ontario, vis-a-vis the Bulldog Hanovers or the Cattlewashes. In New York, the Chapter Sevens, in New Jersey, the Walners, and Pennsylvania, you know… So I think there’s just more prize money to race for. I think that’s the driver of the yearling prices.”
As for economic indicators, both the Saratoga and Keeneland sales on the thoroughbred side smashed records. While the global economy has faced challenges this year, Reid said he’s more concerned about currency and how it may impact Canadian and European buyers.
“In the U.S., the tax laws are definitely favorable to the horse industry, there’s no doubt about that,” Reid said. “The stock market is rolling right along. The economy seems like it’s rolling right along. I don’t see too many negatives.
“I can’t see the economy slowing down in the near future, because there’s a lot of infrastructure going on here in the U.S. I can’t comment on other parts of the world, but for the jurisdictions that we’re talking about as far as racing horses are concerned, I don’t see any negatives on the horizon.”
As for the tax laws, which are explained in our story that begins on pg. XXXXXX, Reid said the ability to write off 100 per cent of the Bonus Depreciation for qualified property purchased and placed in service, “applies to a broad range of businesses and the horse business happens to be one of them. And, you know, if you’re a restaurant operator, you can redo your kitchen, get new equipment and then you get a write off… You buy horses in your operation, you get a write off. It’s a broad-based tax rule. It’s not an equine rule. I think it’s going to spur the economy as well.”
As for Canadian buyers and their concerns about issues crossing the border in an era of heightened security and tariffs, Reid said he doesn’t think it will have a major impact on the horse racing industry.
“I think the border is a non-issue,” he said. “I haven’t heard of anybody having any issues getting across the border in a long time. So, I think the border is a non-issue.
“I’ve always thought it’s kind of a borderless society when it comes to the horse business, and I continue to believe that… From an equine point of view, a competition point of view, if you’re in the business of racing horses, you want to race the best horses you possibly can and you’re going to be looking at those horses for two years, I think they would go wherever they have to go to acquire the horse.”
Reid said there is nothing notable that is new this year in terms of how the sale will be conducted. The opening session begins Monday at 7 p.m., followed by afternoon sales sessions beginning at 1 p.m. on Tuesday, Wednesday and Thursday. The final session is Friday evening, beginning at 7 p.m.
Reid did say he was bullish on the breedings being sold at the start of Tuesday’s session in support of this year’s Breeders Crown Charity Challenge. A single breeding is available to each of the following stallions:
Bulldog Hanover
Captain Corey
Downbytheseaside
Green Manalishi S
Sweet Lou
Tactical Landing
Walner
To launch Tuesday’s festivities, a cocktail reception will be held at Fasig-Tipton in the Kentucky Room from noon to 1 p.m. The reception will include remarks from the Hambletonian Society, Woodbine Entertainment, and a special presentation by Marvin Katz, the founder of the Breeders Crown Charity Challenge.
