Published: September 30, 2009 05:12 pm      

Record decline — 10/01/09

Did economy or quality cause drop in Keeneland sales?

Officials at Keeneland in Lexington are blaming the national economy on the sharpest drop in sales ever recorded at the September Yearling Sale. We hope that’s the only reason for the decline, and it’s not also because buyers are losing confidence in the quality of racehorses bought and sold in Kentucky.

The 14-day sale ended Monday with total sales of $191,859,200, down 41.51 percent from last year’s 15-day total of $327,999,100. The average price was $60,734, a 33.25 percent decline from 2008, while the median of $22,000 price was down 40.54 percent from a year ago.

It marked the first time in the 66 years of the yearling sales at Keeneland that sales fell by more than 40 percent. According to the Courier-Journal in Louisville. the previous record decline was 27 percent in 1947. The previous largest median decline was 21 percent in 1988, but then that figure has only been published since 1987.

Keeneland Sales Director Geoffrey Russell says the thoroughbred industry is no different from other markets that have been affected by global financial woes. But if you believe many of those in this state’s racing industry — led by the Kentucky Equine Education Project (KEEP) which has been pushing for expanded gambling — the ability of tracks in other states to use revenue from expanded gambling to increase their purses is hurting both the breeding and racing of thoroughbreds in this state, in addition to the financial viability of some tracks.

Is that just a ploy to convince legislators and voters to approve expanded gambling at tracks? Maybe, but clearly buyers were not as interested in spending big bucks on young thoroughbreds sold at Keeneland this fall than they have been in previous year. It could be just because of the economy. Or maybe the horse industry knows what it is talking about when it frets about the future of breeding and racing in this state.