All eyes on Magic Millions as industry seeks guide to market
Bumper catalogue of yearlings on the Gold Coast to set benchmark for year ahead
Nobody can be certain what will play out on the Gold Coast this afternoon as the Magic Millions Yearling Sale gets underway, but what does eventuate today and for the following six days is set to be an important measure for the remainder of the sales season.
For the first time, the Queensland-based auction house will embark on seven days of selling, comprising more than 1200 lots against the backdrop of a pandemic wreaking havoc. However, industry stakeholders remain steadfast that despite the negative outside forces this year’s offering promises to be a robust market.
Mick Malone is acting as both a buyer and a vendor at this year’s sale, his workload increased in part by the launch of micro syndication company The Racing League, which is expected to secure more than ten horses at the auction.
Kitchwin Hills’ Malone, whose Hunter Valley farm is offering 27 yearlings, does not predict any wild market fluctuations occurring at the Gold Coast.
“Everyone’s talking the market down and as a buyer you think ‘yes’ but as a vendor that’s certainly not what you want to hear and I don’t think it will be actually. I think the good horses will be better and the hard horses will be harder (to sell),” Malone told ANZ Bloodstock News yesterday.
“You’ve just got to be realistic about what your stock is like as a vendor and either get them on the market or realise that you’re taking them home.”
Describing the racing industry as a “crazy game”, Malone believes buyers’ search for the next stallion prospect will underpin the middle–to–top-end of the market.
“There’s a lot of colt funds getting around, a lot of guys looking to buy colts at that higher level. How low they come on those horses, who knows. Is that a $300,000 colt fund or a $700,000 colt fund?” he asked.
“Often those colt funds are high, so you might lose a few guys who are under that $400,000 mark.
“The interest from a viewing point is down, but it wouldn’t be down 30 per cent or anything like that. It would be down ten or 20 per cent and that is understandable.
“Sometimes a lot of those viewings around those extra ten, 15 or 20 per cent that you get at a sale are often owners following up on a trainer’s recommendation, so hopefully those owners keep pushing the trainers and we roll on.”
While The Racing League, a spinoff of the Mirunners partnerships, is taking up much of Malone’s inspection time, he is also a trusted adviser for prominent Sydney-based owners Neil Werrett and Max Whitby, while some interstate trainers and buyers unable to get to the Gold Coast have also sought his opinion on horses.
“I have got a lot of texts saying, ‘have you seen this horse, what did you think of that one?’ and then we are buying for the Thoroughbred Racing League, so that is something different for us and I always buy for a few other clients,” he said.
“One thing, Magic Millions need a big rap for the quality of horses they have got here. I know my shortlist from 900-odd horses was about 350 and many people I have spoken to have said the same.
“If the market is off a little bit, the money will spread a lot and that will affect the market because I think there’s a lot of nice horses here.”
As was flagged by Newhaven Park’s John Kelly in ANZ Bloodstock News prior to Christmas, some vendors remain circumspect about the depth of the market, leading to suggestions that the clearance rate may fall on previous years and that sellers will need to place sensible reserves on their yearlings.
“This sale is the barometer for the season; this sets the tone for any other sale we have here in this part of the world, so we need the industry to get behind it and ensure that we get off on the right note,” said Magic Millions managing director Barry Bowditch, who is under no illusions about the hurdles faced in the past ten months.
“The catalogue is as good as we can get it. The agents out there are working for plenty of people and we can only deal with what’s put in front of us.
“It’s going to be tricky, but I think the top-end horses will do very, very well and as the market goes through there are going to be patchy moments.
“Maybe the clearance rate won’t be as good as it was last year, but all in all, we have done all we can.”
There was a similar sentiment expressed prior to the opening day of last year’s sale, amidst a bushfire disaster sweeping the eastern seaboard, but by the end of the four-session Book 1 sale the aggregate ($177,400,000), average ($250,221) and median ($180,000) were all up year-on-year, the latter two measure by more than five percent each.
This year, however, the circumstances are far-reaching, compounded by the fact many buyers, particularly from Sydney, have been hampered by border closures in the lead-up to the auction.
But in some positive news yesterday, a three-day Greater Brisbane lockdown was lifted at 6pm local time and a small number of Sydney buyers were also granted government exemptions to attend the auction under tight protocols.
They included trainers Gerald Ryan and Annabel Neasham as well as Chris and Michael Ward of Triple Crown Syndications.
Bowditch implored buyers to recognise the opportunities available over the next week.
“If you’re not buying here, you’re missing out. You’re not playing into a $12 million race series, you’re not buying some of the best-credentialed horses that Australia has to offer and you are missing out on a ticket in a huge lottery,” he said.
“The buyers out there, whether it’s the mums and dads at home, the syndicators, the agents, the trainers and the big buyers are all thinking that, and they are motivated and ready to go for (today).”
Vinery Stud general manager Peter Orton, like Malone, was also growing in confidence that this week’s sale would provide a vibrant trading environment for buyers and sellers.
“The enthusiasm and interest that has been shown from people who seem keen to buy horses at a fairly consistent level has me fairly comfortable with where the sale is at,” Orton said.
“There’s a lot of horses here, a lot of opportunities to get around and find a nice horse. There’s a few standout horses and there’s the depth of buyers here (to be on them).”
A 180-lot opening session, starting at 12pm local time today, is the first of seven consecutive days of selling at the Gold Coast.