Wallace in shock resignation from global powerhouse China Horse Club
After eight years and 44 Group 1 wins expat Kiwi to leave post on December 31 and become independent agent once more
Michael Wallace, one of the key figures behind the staggering rise of the China Horse Club racing and breeding juggernaut, has made the shock decision to leave the powerful international organisation that he helped build from the ground up after eight years of service.
The expatriate New Zealander, who in more recent years has been CHC’s chief operating officer based in the US, yesterday revealed he had resigned his position and that he planned to resume his career as an independent bloodstock agent in the New Year.
Wallace, speaking to ANZ Bloodstock News from his home in Lexington, Kentucky, said he had reached the conclusion that it was time to move on from China Horse Club.
“After eight years I’ve resigned from my role there and it’s time to move on and look for the next challenge,” Wallace said.
“Fundamentally, we started (China Horse Club) from a start-up position and grew it into something pretty substantial and successful and over that period of time that I felt, personally, that it was time for a change and time to see what was available for me.”
During Wallace’s tenure at CHC, which he began with in 2014, the organisation enjoyed immense success and he has helped establish huge breeding and racing divisions which have seen the group race 27 Group 1 winners of 44 Group 1 races, headed by the unbeaten US Triple Crown champion Justify (Scat Daddy), a colt who was sold to Coolmore in a hugely lucrative stallion deal, and world champion three-year-old Australia (Galileo) who is also now on the roster at the John Magnier-owned stud.
In Australia, the Newgate Farm-CHC colts partnership has been a dominant fixture in the sales ring and on the racetrack with the syndicate’s approach to identifying young stallion prospects from the yearling sales, as well as lightly-raced horses that have already displayed talent, proving highly successful.
With Wallace and Newgate Farm’s Henry Field leading the selection process, China Horse Club has part-owned and retained interests in stallions such as Deep Field (Northern Meteor), Extreme Choice (Not A Single Doubt), Russian Revolution (Snitzel), Flying Artie (Artie Schiller) and Cosmic Force (Deep Field).
In 2021 alone, China Horse Club has interests in six colts who have won at the highest level: Golden Slipper Stakes (Gr 1, 1200m) winner Stay Inside (Extreme Choice), Blue Diamond Stakes (Gr 1, 1200m) winner Artorius (Flying Artie), ATC Champagne Stakes (Gr 1, 1600m) winner Captivant (Capitalist), Golden Rose Stakes (Gr 1, 1400m) winner In The Congo (Snitzel) and A J Moir Stakes (Gr 1, 1000m) winner Wild Ruler (Snitzel), all in Australia and in partnership with the Newgate Farm syndicate, as well as the last-start Breeders’ Cup Dirt Mile (Gr 1, 8f) winner Life Is Good (Into Mischief), who is trained by Todd Pletcher in the US.
“(The Newgate colts partnership) has been an integral part of the strategy and it’s been phenomenally successful with the number of colts that have come out of that group alone,” said Wallace, the son of New Zealand breeder Jim Wallace of Ardsley Stud.
“When you set out to try and do something like that, you obviously have ambitions to do it but to get a number of those horses into the stallion barn, it’s probably beyond all of our expectations.
“It’s been very gratifying and very humbling to see the rewards for those people who put their money in.”
Under Wallace’s reign, CHC has also won the Derby (Gr 1, 1m 4f) (with Australia) in the UK and a Kentucky Derby (Gr 1, 10f) (Justify), bought into and raced Australian Horse of the Year Dissident (Sebring) and champion New Zealand three-year-old Madison County (Pins), as well as NZB Filly of the Year Queen Of Diamonds (Savabeel).
Also presiding over the development of major breeding operations in both hemispheres, the Wallace-led heady investment has seen CHC produce sale-topping horses across major auction houses, including Keeneland, Inglis, Arqana and Goffs.
“I have been afforded a wonderful opportunity by them and I’d like to think that I’ve delivered on that opportunity,” Wallace said.
“It’s in a wonderful spot (China Horse Club). There’s six Group 1-winning colts in 2021 alone, so it’s a pretty enviable place to be, and I am sure you will see those red and yellow colours for many years to come. I wish them and the team nothing but the best.”
While Wallace previously ran Waterford Bloodstock alongside Mike Rennie when operating as an independent agent, his new venture will be under the Telluride Agency banner which he intends to run from his US base in Kentucky.
“I’ll remain in racing. I love what I do. I wouldn’t change it for the world, I’m just stepping away from one organisation and heading back to an agency and seeing what’s out there but just in a slightly different path,” he said.
“Before I signed on with CHC, I ran Waterford Bloodstock and that continued to run partly when I was with CHC with (the assistance of) Mike Rennie, so it’s not foreign to me at all.
“It’s something that I started and I am comfortable with and I have no qualms about. I know what it’s all about, I’ve been out there and done it before and that’s the way I am approaching.”
Wallace has no plans to return to the southern hemisphere on a permanent basis but he does intend on being at the Magic Millions yearling sale on the Gold Coast next month after a two-year absence due to the pandemic.
“I will stay in the US. I am very happy here in Lexington. It’s provided a great opportunity and it’s a big market,” he said.
“Fortunately, I also have a lot of contacts and experience in Australia. The global industry is very small now, so coming back and forth when required for any reason is easily done.
“What the future holds, time will tell. At the moment, it’ll be getting on with an independent business and trying to put people into fast horses where we can.”
Wallace officially finishes with CHC on December 31.