Cover image courtesy of Widden Stud
In the first part of this series, we focus on stallions standing at stud in Australia. Upon analysing the nation's leading sires based on average yearling prices, a distinct trend becomes evident: while high service fees typically correlate with higher yearling prices, there are ample opportunities to invest in emerging sires.
The profitability index for each sire was calculated by dividing their 2024 yearling average by their covering fee from 2021, the year when the offspring in question were conceived. To ensure fair comparison, the GST component of the service fee was omitted when calculating the profitability index.
Stud fee indicative of yearling price
There is a notable positive relationship between stud fees and average yearling sales prices. Unsurprisingly, stallions who command higher service fees, such as I Am Invincible, Snitzel, and Zoustar, achieve the highest yearling sale averages. However, up-and-coming sires like Playing God, Tassort, and Too Darn Hot (GB) are anomalies to that trend proving that timing is everything when it comes to capitalising on emerging sires.
Graph: Top 30 Australian based stallions by average yearling price relative to covering fee
Reigning Champion Sire, I Am Invincible, had an impressive year with his 95 yearlings averaging over $580,000 each, and more than 10 per cent of them selling for $1 million or more, resulting in a profitability index of 2.9. Although Extreme Choice ranked second for average yearling price, his private fee prevents a precise calculation of return on investment. Three-time Champion Sire Snitzel’s yearlings averaged nearly $100,000 less than those of I Am Invincible. However, Snitzel surpassed I Am Invincible in profitability due to his lower service fee of $165,000 compared to $220,000. Zoustar outperformed both, with his yearlings averaging $475,000, yielding a profitability index of 3.4, almost 3.5 times his service fee.
| I Am Invincible | $220,000 | $581,096 | 2.9 |
| Extreme Choice | Private | $518,030 | |
| Snitzel | $165,000 | $484,041 | 3.2 |
| Zoustar | $154,000 | $475,260 | 3.4 |
| Pierro | $110,000 | $366,430 | 3.7 |
| Too Darn Hot | $44,000 | $217,868 | 5.4 |
| Capitalist | $99,000 | $192,194 | 2.1 |
| Dundeel | $66,000 | $187,970 | 3.1 |
| So You Think | $77,000 | $175,944 | 2.5 |
| The Autumn Sun | $66,000 | $165,992 | 2.8 |
Table: Top 10 Australian based stallions by yearling sale average
Emerging sires produce healthy returns
While established stallions reliably command high demand for their yearlings, strategically investing in up-and-coming sires can yield significant rewards when timed correctly. It's no surprise that among Australian-based sires, the most lucrative returns by profitability index often stem from stallions with lower-end service fees. Interestingly, these stallions aren't always the typical young, emerging sires.
| Starspangledbanner | $16,500 | $147,268 | 9.8 |
| Playing God | $16,500 | $119,423 | 8 |
| Tassort | $11,000 | $77,890 | 7.8 |
| Harry Angel | $16,500 | $93,307 | 6.2 |
| Star Turn | $16,500 | $83,809 | 5.6 |
| Too Darn Hot | $44,000 | $217,868 | 5.4 |
| Alabama Express | $24,750 | $114,245 | 5.1 |
| Spirit of Boom | $33,000 | $120,443 | 4 |
| Pierro | $110,000 | $366,430 | 3.7 |
| Toronado | $49,500 | $155,911 | 3.5 |
Table: Top 10 Australian based stallions by profitability index
1. Starspangledbanner
2024 yearling average: $147,268
2021 covering fee: $16,500
Profitability index: 9.8
Starspangledbanner | Standing at Coolmore
Starspangledbanner achieved a career-high yearling average and topped the profitability index, with his yearlings fetching nearly 10 times his 2021 service fee of $16,500 (including GST). This globetrotting sire of seven Group 1 winners saw 10 yearlings sell this year for an average price of $147,268. The highlight was a three-quarter brother to Defcon (Choisir), sold to Solari Bloodstock in Hong Kong for $510,000 at the Inglis Premier Yearling Sale.
Starspangledbanner, a proven sire of top-class racehorses like State Of Rest (Ire), California Spangle, and Beauty Eternal, has four stakes winners this season, including the 2-year-olds Lincolnshire and Herastar. Despite battling fertility issues early in his career, he has earned a well-deserved fee increase to $44,000 (including GST) for the 2024 season.
2. Playing God
2024 yearling average: $119,423
2021 covering fee: $16,500
Profitability index: 8
Playing God | Standing at Darling View Thoroughbreds
Darling View Thoroughbreds' standout sire, Playing God, has enjoyed a remarkable season, producing seven stakes winners, including Bustler, who became his second elite winner with a victory in the G1 Railway S. With 18 stakes winners to his name and an impressive 10 per cent stakes winners to runners strike rate, the son of Blackfriars averaged just 40 foals for his first seven crops. However, in the past two years, he has gained significant popularity, averaging 71 live foals and covering the largest book of mares in his career last year (144).
This year, Playing God’s yearlings averaged a robust $119,423 from 42 offerings, primarily sold at the Magic Millions Perth Yearling Sale. A significant milestone was achieved with his most expensive yearling, a full sister to Bustler, selling for $625,000 to Sheamus Mills Bloodstock (FBAA). As Playing God continues to strengthen his reputation, it is no surprise that his service fee will increase to $49,500 for the upcoming season.
3. Tassort
2024 yearling average: $77,890
2021 covering fee: $11,000
Profitability index: 7.8
Tassort | Standing at Newgate
Newgate’s Tassort has had an exceptional start at stud, securing Group 1 status with Manaal's victory in the G1 Sires’ Produce S., and his sales averages have followed suit.
Starting with a modest fee of $11,000 inc GST, which remained unchanged for his first four seasons, Tassort's eight first-crop winners have placed him second on this year’s Leading First Season Sire tables, nearly $100,000 ahead of Pierata.
His three stakes performers have generated significant interest, with his average yearling price nearly doubling from $40,594 in 2023 to $77,890 in 2024. Among his 60 offerings this season, a colt from Emirates Park’s Ajaayeb (Snitzel) sold for $380,000 at the Inglis Australian Easter Yearling Sale to Richard and Will Freedman.
4. Harry Angel (Ire)
2024 yearling average: $93,397
2021 covering fee: $16,500
Profitability index: 6.2
Harry Angel (Ire) | Standing at Darley
Darley’s shuttle sire Harry Angel (Ire) experienced a slight dip in year-on-year yearling sale averages, from $101,728 in 2023 to $93,307 in 2024. Despite this, he still boasts an impressive average return on investment. Headlined by G1 Spring Champion S. winner Tom Kitten, Harry Angel’s four stakes winners also included G2 Danehill S. winner Stretan Angel and Arkansaw Kid, who claimed the Listed Gothic S., R. Listed Inglis Banner S., and placed third in the G1 Blue Diamond S. last year.
The son of Dark Angel (Ire) had 44 yearlings offered across the 2024 yearling sale circuit, fetching an average of just under $100,000. Notably, this includes the half-sister to black-type filly Cymbalism (Denman), who sold to Phillip Stokes Racing and Connolly Bloodstock for $350,000 at the Magic Millions Gold Coast Yearling Sale.
5. Star Turn
2024 yearling average: $83,809
2021 covering fee: $16,500
Profitability index: 5.6
Star Turn | Standing at Vinery Stud
Vinery Stud’s Star Turn achieved new heights this sales season, with the consistent sire reaching a career-high average yearling price of $83,809. This includes the standout sale of the daughter of stakes-winning mare Naantali (NZ) (Rip Van Winkle (Ire)), purchased by Eddie Hirsch at the Inglis Australian Easter Yearling Sale for $360,000.
Among the top 10 stallions by profitability index, Darley’s leading first-season sire Too Darn Hot also made a significant impact, with his second-crop averaging nearly $220,000 at this year’s yearling sale circuit, a substantial increase from last year’s average of $184,361. Those who sold yearlings bred off his 2021 stud fee of $44,000 (inc GST) are now reaping the rewards, as the popular young sire's yearlings boast a profitability index of 5.4.
Too Darn Hot (GB) | Standing at Darley
Pierro also had a successful season, averaging over $365,000—more than $120,000 above last year’s sale average which has him boasting a profitability index of 3.7. Excluding the influence of the $10 million Winx yearling filly, Pierro's yearlings still averaged a healthy $160,000 for the season.
High-end vs. emerging
It's crucial to acknowledge that the expenses linked to raising subsequent foals until the yearling sales are not addressed in this piece. However, it's worth noting that the upkeep costs involved in nurturing bloodstock from foals to yearlings generally remain consistent regardless of the service fee paid, a factor worth considering when assessing return on investment.
While the initial investment in high-end stallions is costly, the likelihood of the resultant yearling recouping the initial outlay and more is generally greater. This investment can lead to higher yearling sale prices but also increased marketability of the mare, and potentially better opportunities for the yearling on the track.
Breeding and selling horses involves risks at all levels and investing in up-and-coming sires is particularly risky yet can yield life-changing results. While the potential returns generated from investing in up-and-coming sires can be impressive on paper, it's important to acknowledge the relative return on investment when upkeep is factored in the equation.
