Paul Spears said...

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

posted at 3:28 PM on Aug 25th 2008

tim mansfield said...

I look at this as great news, especially as I bred to be PA eligible and have a nice yearling to slide into the program next year. Could things be better? Sure. Might we encourage the PASS folks to broaden the playing field so many can participate and make money? Of course. Good news for harness folks and great news for the general public-purses are up.

Andrew's point and gap anlaysis on where we are and then where we should not be discounted. Unless we may things fair for most all the new owners we bring in the door will leave just as quickly as they came.

BTW-Murray, could I get a recommendation or two for trainers in PA for a couple of pacer yearlings?

Tim

posted at 12:45 PM on Aug 23rd 2008

Rich said...

I agree with you Andy. We will be looking for a New York bred colt again this year. The purses are higher and there are more options.

We do have 2 mares bred to PA Sires but if I am going to be bidding on a colt at auction for myself it will be a NY Sired colt.

posted at 12:15 PM on Aug 23rd 2008

Murray Brown said...

Andrew,
I've got disagree with you on a few of your points. Firstly there is a secondary program in Pennsylvania - its the Pennsylvania Fair Sires Stakes Program. Two and three year olds who are just okay, can go and race regularly and if not make a whole lot of money, can earn enough to pay their way. Secondly I disagree with your statement that New York eligibles go for twice the amount that Pennsylvania eligibles go for.

With the exception of Yonkers, that's simply not true. Thirdly, I contest your statement that you need a top shelf two year old to be competitive in the PASS program. I'm fortunate enough to own pieces of three pacing fillies racing in the Dan Altmeyer stable. I believe one of them to be a high quality filly. Her name is Singnoevil Hanover. Another is a decent filly who when the stars are in proper alignment can be competitive in PASS competition. Her name is Tuppence Hanover. These two fillies raced in PASS events at Pocono Downs on Tuesday. Guess what happened? Tuppence Hanover, the lesser of the two fillies drew in easy and won her division in a moderate 1.58.3f. Singnoevil Hanover in my estimate by far the better filly drew into a much tougher didvision, had a tough trip and finished fourth in 1.53.3f. I was thrilled with the performance of both horses. You have no control of how you draw or how the races go. That's racing!

Incidentally the third filly is named Wrinkle Hanover. She appears to be the least talented of the three but is quite competitive on the PA Fair Circuit where Dan Altmeyer and Mike Wilder are racing her. She isn't a big money maker but has earned enough to pay part of her expenses.

Like my late boss John Simpson Sr used to say "If you can't beat them, then try to outship them."

posted at 3:18 PM on Aug 22nd 2008

Stuart Chambers said...

A Grass Roots program would be very nice for PA. We have a colt trotter going @ Pocono in an hr and there are 7 or 8 divisions. A Grass Roots program might sort out the monsters from the next level. I totally agree with your basic concept....basically, follow the Ontario model. That being said, the PA program is def on the improve, just maybe some tweaking needed.

posted at 2:24 PM on Aug 22nd 2008

Allan said...

I understand where you are coming from Andrew but as a prospective buyer, you need to make that evaluation where to spend your yearling dollars. There is no right or wrong answer. What I do know is PA does have a pretty good fair circuit where you can earn some money and give your lesser horses experience, but granted you are not going to make the money you would make on the p-m circuit.

What I would suggest is the next time the horsemen have a contract due with one of the tracks they get written into the contract guaranteed stakes or late closer events open to all types of PA-sired horses. Being these horsemen will have a lot of PA-sired horses anyway, I can't see why it would go against their interest. Of course, the breeding farms can help sponsor some of the races.

BTW, it is a little late, but thanks to the PA horsemen that sponsored on their own a consolation race for the Adios when the tracks were not going to have them. That was a wonderful gesture on their part (though one should give a loud boo to the tracks for not paying for these).

From Andrew: Yes, Allan. But my point is the same. As an owner, I would spend more on a NY or NJ horse, all things equal, than a PA horse, because of the racing and staking options. I am saying that PA is not going to get as many of my dollars as it otherwise would as a result of its current staking program.

posted at 1:32 PM on Aug 22nd 2008

dan k said...

Andrew,
How about some sort of tiered system that requires a 2 or 3 yo to prove their mettle before going on to the larger purses at a pari-mutual venue. This would give owners an opportunity for income at various levels of ability. It would also free BETTORS of these AWFUL
EXPERIMENTAL races that we are offered by many PA & NY tracks.
It is counter productive to have 8 races for 2yo trotters out of a 12 race card, that we so often get at Pocono, Chester, Tioga etc.
Don't the Associations , Tracks etc. see how bad this is for the sport ?
A newcomer will just go away after seeing 5 out of 9 horses break, and a veteran like me, will watch & not bet, or just go golfing.
Give the owners & trainers a chance to make some money & pay the bills and the bettors a chance to cash a ticket for more than $ 2.40

posted at 1:16 PM on Aug 22nd 2008

john said...

Why not annouce the news about purse increase now, being a prospective owner, i would want to know. I dont have any doubts that it will happen. This news will not affect the bidding at the PA sale as much as the great selection of yearlings put together by the consigners. This is a very good group to kick off the yearling sales season. PA is headed in the right direction, and i think has the leadership to get there. A lot of very good horseman, very capable.

Also, would like to mention Hanover Shoe Farms as a big help in answering my questions about their consignment......Thank You.

From Andrew: John. I think the announcement is marketing genius and I truly hope for horsemen that the forecast of the big purse raise comes true. I just think the system there needs some tweaking to better take care of the vast majority of horses who can't make the top-shelf cut.

posted at 10:19 AM on Aug 22nd 2008