Cover image courtesy of Breeders’ Cup/Eclipse Sportswire
Overnight at Keeneland on Monday, a packed Kentucky auditorium enjoyed the spectacle of Flightline, the weekend’s most recent winner of the G1 Breeders’ Cup Classic, enter a virtual ringside auction. A 2.5 per cent share in the horse, offered by West Point Thoroughbreds, was sold to an undisclosed client of Brookdale Farm for US$4.6 million, or $7.2 million by Australian conversions.
According to many ringside, it was pure theatre. The sale, hosted as a standalone one-off auction ahead of the Book 1 session of Keeneland’s November Breeding Stock Sale, values Flightline at close to AU$285 million, and there was no shortage of interest according to Bill Farish of Lane’s End Farm, which will stand Flightline.
“There was a tremendous amount of interest, and it was so hard to know where something like that (the auction) would go,” he said. “It’s the first time anything like this has ever been done with a horse of that magnitude, and there was only one share available.”
Keeneland took 42 registrations to bid on the Flightline share, and Brookdale Farm’s Freddy Seitz, who signed the ticket at US$4.6 million (AU$7.2 million), admitted he was slightly shocked at the figure realised.
“I didn’t expect it to go that high,” he said. “When you’re dealing with top quality, you’ve got to pay, and he (the buyer) didn’t give me that kind of figure going in. I could tell once bidding started, maybe we were going to keep going. I was a little more nervous than he was. He and his family were watching and I think they were having a really good time.”
“When you’re dealing with top quality, you’ve got to pay, and he (the buyer) didn’t give me that kind of figure going in. I could tell once bidding started, maybe we were going to keep going.” - Freddy Seitz
The identity of Flightline’s new shareholder wasn’t disclosed, but Seitz said he’s a farm client with between six and eight mares.
“He has a broodmare band and I think he’s going to have a nicer broodmare band,” Seitz said. “He will probably be shopping now, from what I understood.”
Flightline’s pricetag just about eclipsed what the son of Tapit (USA) earned across his six career wins. The horse was undefeated, with four of his victories occurring at Grade 1 level, including last Saturday’s Breeders’ Cup Classic. He posted a 9l victory, removing any doubt that he was brilliance at its most elite.
Freddy Seitz (right) signed the ticket at US$4.6 million (AU$7.2 million) for a 2.5 per cent share in Flightline (USA) | Image courtesy of Keeneland
“He captured the hearts and attention of fans around the world and Keeneland is honoured to have showcased this once-in-a-lifetime horse, both on the racetrack and during the Breeders’ Cup, and today in our sales ring,” said Keeneland President and CEO, Shannon Arvin.
Jon Freyer says...
Jon Freyer, the bloodstock manager at Arrowfield Stud, was ringside in Kentucky for the November Breeding Stock Sale and, speaking to TDN AusNZ, he said the Flightline element was a rare spectacle.
“It’s been a big day,” he said. “It values the horse at upwards of $300 million Australian, which is a lot of money. It’s a lot of money.”
Jon Freyer | Image courtesy of Inglis
In local currency, Flightline’s value now sits at around US$182 million, while a stud fee for the horse hasn’t yet been announced by Lane’s End Farm. Freddy Seitz claimed his client “wanted to make a big splash”, so was it simply a case of buying into the boom?
“I think that’s part of it,” Freyer said. “The opportunity to own a piece of a horse of that calibre and stature is exciting for a lot of people, so there’s that. But I suppose there’s also that element of getting access to the horse, and probably access beyond your one breeding right.
“That’s normally how syndicates would work. They would give preference right to shareholders to send additional mares as opposed to outside breeders, so I guess someone is banking on that.”
“The opportunity to own a piece of a horse of that calibre and stature is exciting for a lot of people, so there’s that. But I suppose there’s also that element of getting access to the horse (Flightline), and probably access beyond your one breeding right.” - Jon Freyer
On pure economics, Freyer doesn’t believe Flightline’s new shareholder would make a return on his US$4.6 million through stallion fees alone.
“Purely on what service fee he’ll stand for, and the return you’d earn from him over a period of time, it’s a long payback,” he said.
The recency of Flightline’s roof-raising Breeders’ Cup victory made an impression on the ringside audience on Monday, but Freyer isn’t sure it’s the reason the horse’s share made so much.
“There was tremendous hype on the horse both before and after the race,” he said. “I think the excitement it’s (the victory) created, and the buzz and everything else, made him a trophy. That’s obviously part of it, but the Breeders’ Cup itself being in town across the road, pretty much at the same venue, really gave huge enthusiasm to the whole thing.”
Regarding the price realised, like many in the auditorium, Freyer was surprised.
“Talking to a number of others before it, the general thought was that on strict evaluations, it was probably worth up to US$2 million,” he said. “With a number of people in it, we thought maybe it would push to US$2.5 million, and it’s made nearly double that.”
“Talking to a number of others before it (the auction), the general thought was that on strict evaluations, it (the share) was probably worth up to US$2 million. With a number of people in it, we thought maybe it would push to US$2.5 million, and it’s made nearly double that.” - Jon Freyer
It’s expected that a service fee for Flightline will be announced in the coming days and Monday’s auction result, and the value it puts on the new stallion, will likely influence things.
As it stands, the Flightline syndicate comprises West Point at 15 per cent, Hronis Racing at 37.5 per cent, Summer Wind Equine at 25 per cent, Siena Farm and Woodford Racing at 10 per cent apiece, and Monday’s buyer at 2.5 per cent.
West Point was the original buyer of Flightline as a yearling, paying US$1 million (AU$1.55 million) for him at the 2019 Fasig-Tipton Saratoga Sale, the company’s New York sale of select stock.
“He was quite an exceptional horse,” Freyer said. “He was well-bred, good-looking and exceptional on the racecourse, and you don’t get those too often. As to whether we’ll see those kinds of figures in the Australian market any time soon, I’m not sure.
“You’d need a horse perhaps like that, or perhaps a stallion like Redoute’s Choice, to reach that sort of value and generate that sort of excitement among people.”
“As to whether we’ll see those kinds of figures in the Australian market any time soon, I’m not sure. You’d need a horse perhaps like that (Flightline), or perhaps a stallion like Redoute’s Choice, to reach that sort of value and generate that sort of excitement among people.” - Jon Freyer
The spectacle of the sale itself, hosted both ringside and virtually in the metaverse, was unusual and a first for most around the ring. Digital interest aside, there wasn’t a seat to be found in the auditorium.
“I don’t know that the metaverse part of it added anything because I think all of the participants were in the ring,” Freyer said. “You had to be in the auditorium to bid, so you couldn’t be out the back where most people buy the mares and yearlings from.
“So it was absolutely jam-packed, and it was probably the most packed it’s been in about 40 years, going right back to the Robert Sangster days.”
Freyer’s words carry a lot of merit because, later on in trading, the opening session of the Breeding Stock Sale kicked off and things went north.
The packed Keeneland auditorium during the auction of 2.5 per cent in Flightline (USA) | Image courtesy of Keeneland
Hip 235, the Midnight Lute (USA) mare Midnight Bisou (USA), reached US$5.5 million (AU$8.5 million) when sold by Hill ‘n’ Dale to Katsumi Yoshida. Shamrock Rose (USA) (First Dude {USA}) went for US$3 million (AU$4.6 million) and, all told, nine mares reached seven figures.
In the words of Patrick and Nick Robinson’s famous book Horse Trader, ‘everyone was cleaning house. There was money all over the place. The potential for profit seemed to be without limit.’
Henry Field says…
Australian studmaster Henry Field, of Newgate Farm, was also ringside on Monday, and he said Flightline’s share illustrated a well-funded taste for certain levels of bloodstock.
“It goes to show that there’s an extreme appetite for the elite of the elite, and this horse was that,” he said, speaking to TDN AusNZ. “He was the best example of the appetite for high-quality bloodstock across the board on Monday, and it was a very rare offering for a horse that is probably the highest-profiled animal to go to stud since Frankel.”
“He (Flightline) was the best example of the appetite for high-quality bloodstock across the board on Monday, and it was a very rare offering for a horse that is probably the highest-profiled animal to go to stud since Frankel.” - Henry Field
For Field, the rest of the day’s trading simply backed up what went on with Flightline. He said the catalogue was selling very strongly and that people were prepared to pay handsomely for quality stock.
Field added that it was a trend felt across America generally, but also in Australia and Europe.
“I think trading is going to be very strong throughout the next six months in Australia, from the yearling sales to the breeding stock markets,” he said. “There’s a huge amount of people around who want to deal in the best property, the best bloodstock and the best in field or whatever asset-class they’re dealing in, and we’ve seen that here. There’s an intense appetite for quality stock.”
Henry Field
This season in Australia, Newgate Farm is home to 13 stallions with room for more. As such, Field has a unique perspective on the extraordinary value that was put on Flightline at Monday’s auction.
“In America, when there’s an elite opportunity, like there was with this horse, people come out of the woodwork and they want to be part of something special,” he said. “I think it’s a sign of the times, the amount of people that are in the market and want to deal at this level.”
“In America, when there’s an elite opportunity, people come out of the woodwork and they want to be part of something special... I think it’s a sign of the times, the amount of people that are in the market and want to deal at this level.” - Henry Field
So how does that compare to Australian values on bloodstock?
“From a global perspective, I think the top end of Australia is probably trading at less than the comparable in North America and Europe, and certainly the appetite in Australia for the best quality is intense but, as an example, the high-end broodmare market in America is trading at more than it does in Australia.
“The likes of Yulong bought two very special mares off our consignment in Tofane and Away Game this year, and at $3 million and $4 million respectively they were very good-value on a global marketplace, even going by what we’ve seen here today (Monday).”
