Here is a comment I received today from Hanover's Paul Spears who wrote to express his frustration in the wake of Sunday's PA Preferred Sale. I find it important and candid. Clearly, Spears and Hanover get my point about the need for the Keystone State to make its sire stakes program much better in order to attract out-of-state owners to PA-sired colts and fillies. Here are Spears' remarks:
"Andrew:
As President of Standardbred Horse Sales Company, Executive Director of the Standardbred Breeders Association of PA, and Vice President of Hanover Shoe Farms, I read your observations about the PA yearling market with great interest. I have compiled a great deal of information about the sale of commercial PA yearlings in 2006 and 2007 in response to PA slots legislation. For breeders, the data is very discouraging. To date, there has been no significant increase in auction prices for PA yearlings because of slots legislation.
The most significant reason for the indifference of the market to PA sired yearlings lies in the lack of dedicated racing opportunities for PA sired 2 and 3 year old horses. Slots legislation mandates that overnight purses will be supplemented by 10 dollars for every 1 dollar that goes toward PA Sire Stakes purses at pari-mutuel tracks and Fairs. Pennsylvania racetracks write virtually no conditioned races for PA sired 2 and 3 year old horses. Therefore, PA sired 2 and 3 year old horses are excluded from rich overnight purses unless their owners are willing to compete against older, more mature horses in "NW1" or "4 Year Olds and Under" races. Under the present racing program in PA, every single dollar of slots revenue added to PA racing purses provides a stronger incentive for the purchase of aged race horses, and a disincentive to purchase a PA sired yearling with regional appeal.
The structure of the present PA racing program in PA has grown from historical circumstances. PA harness tracks and horsemen struggled for many years racing cheap conditioned/claimers for little money at Pocono and the Meadows, without a market presence in the Philadelphia area since the closure of Garden State Park, Liberty Bell, and Brandywine racetracks. PA breeding farms adapted by selling most of their yearlings to national level buyers outside of PA, most of whom are purchasing their PA yearlings for major Stakes events. PA based buyers purchase less than 20% of PA sired yearlings at major auctions, and pay only 55% of the amount that non-PA owners pay for PA sired yearlings. The PA base of yearling buyers is small and financially weak. Present programs to give preferences to PA sired aged horses and bonuses to PA owners of aged horses do nothing to support the PA yearling market: from this breeder's point of view, these current programs are a complete waste of money.
Unless there is a significant restructuring of overnight racing in PA to provide opportunities for PA sired 2&3 year olds, the PA yearling market will remain stagnant or worse.
The "PA Preferred Yearling Sale" is a prime example of the difficulties in selling PA sired yearlings with regional appeal. Last year, 223 yearlings were cataloged, and the median price was only $5000. This year, only 122 horses were cataloged because the smaller breeders who sold at the bottom half of the sale disappeared. Although the average price "increased significantly" from last year, the simple fact is that the breeders who did stay took a pasting. Hanover Shoe Farms is has been the major consignor in the PA Preferred Sale. In 2007, Hanover Shoe Farms sold 43 yearlings for an average of $13,137; in 2008, Hanover sold 67 yearlings for an average of $10,723 - a decrease of - 18.4% in average price. When you eliminate the bottom half of your sale, average prices must increase the following year even as results for individual consignors decline.
No honest PA breeder would say that anyone owes them a living. However, when the very slots program that was supposed to be our salvation actually discourages the purchase of our yearlings, then it's time to speak up.
Standardbred Breeders Association of PA has reported its findings and recommendations at several meetings of the PA Harness Racing Commission (attended by representatives of PA tracks and horsemens groups) and to officials of the PA Department of Agriculture. The PA racing program will fail in its mission to revitalize the PA Standardbred breeding industry unless these structural flaws are corrected by those in positions to do so.
To read a detailed summary of our "PA Yearling Market Analysis 2006 - 2007" or download a full copy, go to:
http://www.standardbredbreederspa.org/pasales.html
Paul Spears"
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