Cover image courtesy of Coolmore
Service fees are a hot topic each and every year. Broodmare owners invariably argue they should be kept to a minimum; stallion farms cite reasons why fees can be higher. But ultimately, market forces determine what each individual stallion is worth.
The trend at yearling sales so far in 2024 has been very clear. If you are selling at the top of the market, the appetite for those horses is as strong as ever.
But as you drift to the middle and in particular lower end of the price spectrum, it’s been a tougher sell.
The general consensus is that this is likely reflected in service fees. That is, don’t expect a discount at the top end of the spectrum!
According to the Australian Stud book, there were 495 stallions standing in Australia in 2023, that between them covered a total of 19,394 mares.
“According to the Australian Stud book, there were 495 stallions standing in Australia in 2023, that between them covered a total of 19,394 mares.”
The top five per cent of stallions (those standing for $55,000 or higher) covered 18 per cent of the broodmare population.
Extrapolating a little further to those stallions standing at $44,000 and above (6 per cent of all stallions), the coverage reaches 22 per cent.
John Messara’s Arrowfield Stud stands four of the top 20 highest priced stallions from last year in Snitzel $247,000 (inc GST), Dundeel (NZ) $82,500 (inc GST), Maurice (Jpn) $82,500 (inc GST) and The Autumn Sun $66,000 (inc GST).
Messara isn’t expecting any wild fluctuations when stallion fees are revealed to the market this year.
Gallery: Four of the top 20 highest priced stallions from last year, standing at Arrowfield Stud
“The proven horses I think there won’t be much movement,” he said.
“Some that are doing particularly well might go up a bit, but I think they will at least hold their prices.
“The rest of the market is difficult to say. Because the the top end of the market has been very strong and the middle and lower has been a bit weaker.
“The rest of the market is difficult to say. Because the the top end of the market has been very strong and the middle and lower has been a bit weaker.” - John Messara
“It’s just difficult to say at this point, but overall I’d say the market will be broadly in line with last year. Perhaps the lower end service fees might be a bit softer.”
Of the Arrowfield stallions, Messara said there’s likely to be little change, although Dundeel, who has 15 yearlings set to be sold next week at Riverside, is the one who has most improved his CV from this time 12 months ago.
“Dundeel has done really well. He’s got new Group 1 winners, he’s up to eight Group 1 winners now. He’s heavily in demand,” he said.
John Messara
“We haven’t made up our mind yet what we will do on his fee. Other than that, I think it’s just steady as she goes.”
Young guns proving themselves
Victoria’s Yulong Farm will be as busy as any stud farm in 2024 as its roster continues to grow, with young guns Pierata and Alabama Express stepping into the limelight as proven champ Written Tycoon becomes more sparingly used.
Yulong’s General Manager Vin Cox says results at the Easter Sale are unlikely to play much of a part in determining fees for Yulong or other leading farms.
“I think you have to look more broadly than just say the Easter sale,” he said.
Gallery: Victoria’s Yulong Farm will be as busy as any stud farm in 2024 as its roster continues to grow, stallions standing at Yulong Farm
“If you walk into a car yard to buy a Maserati, you’re looking at a different price tag to the regular buyer.
“You’ve got to have to have a fairly broad approach to marketing your stallions and putting the right price on them.
“But absolutely you take into account the result of a more broad range of sales.”
Cox noted that Yulong was in a “semi-unique position” where they have the ability to support their young stallions with some “fairly significant and high profile mares” of their own, but it was still important to get the price right for the broader market.
Vin Cox and Sam Fairgray | Image courtesy of Inglis
Pierata, who stood for $44,000 (inc GST) last year, has just two yearlings catalogued next week, while Alabama Express, a $22,000 (inc GST) stallion in 2023, doesn’t have a single entry, but that’s a scenario likely to change next year if his progeny continue at the rate they have started off this season.
The pair are in a battle for First Season Sire honours, currently running second and third, but likely to overtake Blue Diamond-siring front-runner Royal Meeting (Ire) in the next few weeks.
“With Pierata, you’d have to say he has (lived up to the starting price point of $44,000). Absolutely,” Cox said.
“When they hit the track you hope they have results like Pierata. He’s had an exceptional start to his stud career on the racetrack. So we’re very excited and very happy with where he’s sitting at the moment.
“When they hit the track you hope they have results like Pierata. He’s had an exceptional start to his stud career on the racetrack. So we’re very excited and very happy with where he’s sitting at the moment.” - Vin Cox
“With Alabama Express, we’re getting a lot of inquiries for him and with good reason.
“He has been at a mark that suits a lot of the market. So, not suggesting he will stay the same price – we haven’t made any noise one way or the other.
“But to that end, people have made good money out of (his progeny). They go fishing where they catch fish and seemingly a large part of the market have done well out of the horse.”
Written Tycoon, who turns 22 this year, was listed as “private” last year and will cover a very reduced book of mares in 2024 after a month that has been among the best of his career, siring the Australian Guineas (G1) winner Southport Tycoon and Golden Slipper (G1) winner Lady Of Camelot.
Gallery: Group 1 winners sired by Yulong Farm's sire Written Tycoon
“He’s an ageing stallion, he’s at a stage of his life like many of us, where he should be slowing down. He’s well and truly in that bracket,” Cox said.
“We’ll protect him pretty hard … probably private use only.”
It’s Hot at the top
Darley Australia’s Head of Stallions Alastair Pulford can see a scenario similar to Messara, where the top end stallions maintain their value, but others further down the commercial line will be looked at.
“This is not the first time it’s happened and certainly won’t be the last. We acknowledge the lower end of the market has been quite tough this year,” Pulford said.
“I’m sure the service fees for the stallions in that section of the market will reflect that level of the market, but equally, the top of the market seems as strong as ever and demand for these elite horses is going up, not down.
“I’m sure the service fees for the stallions in that section of the market will reflect that level of the market, but equally, the top of the market seems as strong as ever and demand for these elite horses is going up, not down.” - Alistar Pulford
“Everyone wants to be at the top of the market.
“I don’t envisage a huge drop in service fees generally.
“The sales have been a few percentage points down, but it’s not a crash. Back in the 1980s the crash was substantial. We’ve had a tiny, few points correction. I think people are jumping at shadows a little bit.
“The basis for our yearling prices, which is largely around strong local investment, strong local racing product, that still remains the same. As long as that continues, the industry will remain pretty healthy.”
“The basis for our yearling prices, which is largely around strong local investment, strong local racing product, that still remains the same. As long as that continues, the industry will remain pretty healthy.” - Alastair Pulford
Darley’s Too Darn Hot (GB) is fourth on the First Season Sire list to this point and equal with Alabama Express on six individual winners, but combined with his deeds in the Northern Hemisphere, he is quickly becoming one of the most sought after stallions in the world.
Darley are waiting confirmation on him returning to the Hunter Valley in 2024, but he’s a certain candidate for a fee rise on the $44,000 he was at last year.
“He’s had a remarkable start in the Northern Hemisphere and a really flying start here,” Pulford said.
Too Darn Hot (GB) | Image courtesy of Darley
“He’s certainly the horse everyone is enquiring about at the moment. He will likely stand at a much higher fee than he has previously, but he deserves to.
“We restrict our stallions’ books, we are reasonably conservative in our numbers, which has always been our policy.”
Pulford said a management committee in the Northern Hemisphere would make the decision on whether Too Darn Hot returns.
Alastair Pulford | Image courtesy of The Image Is Everything
“Of course (we would like to see him back), as would the entire Australian market,” he said.
Headline Easter drafts
Inspections are under way at Inglis’ Riverside complex and Arrowfield and Yulong will be two of the major players next week, with drafts of 59 and 28 respectively.
The Yulong selection includes progeny from some of their headline mare purchases of the past two years, including Lucky Vega (Ire) x Unforgotten (Exceed And Excel) filly, Lot 365. Written Tycoon x Melody Belle (NZ) (Commands), filly, Lot 143 and Written Tycoon x Viddora (I Am Invincible), Lot 375.
“We’ve got a very high profile draft in terms of stallion strength and obviously mare strength,” Cox said. “In this business, whether you’re going to the races or going to the sale ring, you don’t really go in with a lot of expectation, but a lot of ambition and hope.”
Arrowfield have advertised there are 99 Group 1 winners on the pedigree pages of their Easter draft this year and Messara feels the early signs are positive for Sunday and Monday.
“Inspections are under way at Inglis’ Riverside complex and Arrowfield and Yulong will be two of the major players next week, with drafts of 59 and 28 respectively.”
“We’re happy enough with our draft. The inspections have been good. It’s early days still. I’ll know more as the week progresses, but I’m confident it’s going to be okay,” he said.
“There seems to be some new buyers on the horizon from overseas. We are hearing about Japanese buyers and American buyers, Hong Kong buyers. All that will help to underpin the market that we have.”
