Unfortunate stereotype

The Keeneland September yearling sale got under way to underwhelming results on Monday, the particulars of which are documented on the home site better than I could do here.

The one aspect of the sale I want to address is the idea that poor results only means that the rich won't get richer.

Breeding horses is an agribusiness. These are farmers who raise horses to sell at market, and their margins are razor thin.

The general public latches on to the idea of a breeder paying millions of dollars in stud fees and assumes that means that the breeders are all millionaires. Raising horses is more than just paying to breed a mare and then selling the foal. There are personnel, transportation, medication, and prep costs.

Jess Jackson, a billionaire, can afford to lose $1-million in breeding costs, but the racing industry cannot because that is $1-million less that he is spending on salaries, other horses, etc.

When Jackson (or Farish, or Sheikh Mohammed or John Magnier) lose money, that is less money they invest in racing. And their investments go beyond horses. They employ people and they use other businesses such as horse vans, vets, etc. The people they employ live where you live and spend money at your businesses.

Even on a low level, think of a $100/week bettor. He goes to the track each week and can afford to lose $100. If he loses the $100 you don't feel too badly for him. He was willing to lose the $100, could afford to lose the $100, and losing the $100 won't cause any hardship in his or in the lives of his family members. He even had fun losing the $100. He came close to a couple winners, kibitzed with his friends, and is looking forward to next week already. But if he lost that $100 every week, he'd eventually stop coming.

Similarly, even if "wealthy horse owners" lose discretionary income every sale, they're not going to stick around forever, and when they're gone, they take a lot of jobs and economic impact with them.

I observed opening session of the Keeneland sale from the office but was in touch with several people inside the sale's pavilion. I asked how the mood was. One said "depressed." Another said, "People are going to go out of business because of this."

In some regard, a correction for the sport isn't a terrible thing. Stud fees had gotten too high, and 45,000+ foals a year and the races needed support those foals are out of hand. But to suggest that poor results at the sales—any sale—just means that the rich won't get richer is an unfortunate stereotype of the people who derive their livelihood from the Sport of Kings.