JRHA Sale Feature

JRHA SALE

FEATURE

JULY 13, 2010

Recap of Monday's session

by Michele MacDonald

Progeny of Deep Impact proved popular (Copyright Japan Racing Association) Buyers new to racing swarmed the opening session of the Japan Racing Horse Association select sale on Monday at the Northern Horse Park on the island of Hokkaido, delighting consignors with a flurry of bidding but keeping a fairly tight grip on their wallets. By the time the last yearling had trotted out of the sale ring, results were mixed and there had been no fireworks, particularly when compared to the sale's halcyon days when $1 million horses were sprinkled throughout the catalog. Yet the consensus reaction was that the sale held up as well as could be hoped in the prevailing economic conditions. Of 214 yearlings offered, 173 were sold for a total of ¥57 billion ($35,078,889) and an average of ¥250 million ($202,768). With more horses offered and sold than in the same session in 2009, when 122 of 156 sent through the ring changed hands, overall gross increased by 14.5 percent as the clearance rate reached 80.8 percent. Yet the average price represented a decline of 17.5 percent and median fell by 6.3 percent, a sign that many breeders are pinched between the need for revenue and market dynamics.

"It's largely like treading water," said Irish native Harry Sweeney, who

operates Paca Paca Farm near Shizunai on Hokkaido, one of the top consignors

outside of the Yoshida family's Shadai Group. "But in this environment, treading

water is not too bad because the alternative is drowning."

Teruya Yoshida, owner of Shadai Farm and vice chairman of the JRHA, was

upbeat following the session as he laughed and chatted with Japanese media

covering the sale.

"There were not many high-priced horses but the medium-priced horses sold

very well," Yoshida said. "I'm very satisfied with these results, and I'm very

happy with the number of buyers coming here.

"The quality of the catalog is not quite as strong as in previous years, but

the range of buyers has grown and that is good considering this economic

situation," he added.

A robust bay colt by two-time Japanese Horse of the Year Deep Impact out of

French and American Group/Grade 3 winner Isle de France (Nureyev), topped the

yearling session at ¥66 million ($733,333).

In contrast, last year's top yearling, a colt by Rock of Gibraltar (Ire), sold

for ¥145million ($1,526,315).

Makoto Kaneko, who raced Deep Impact, purchased the Isle de France colt from

the Northern Farm consignment of Katsumi Yoshida. The top five yearlings sold on

Monday all came from Northern Farm.

Kaneko typically shies away from talking to the media at sales and declined

to comment on the colt.

Yutaka Uda, a savvy Tokyo-based investment manager who obtained an owner's

license last year, bought the co-second highest-priced yearling, a Deep Impact

colt out of Group 3 stakes-placed Kiss Pasion (Jade Robbery), for

¥60 million ($666,666).

The colt is a three-quarter brother to multiple group winner Admire Kiss

(Sunday Silence), runner-up in the 2006 Oka Sho (Japanese One Thousand Guineas).

The colt marks the first time that Uda has invested in a major racing

prospect.

"I liked this one," he said simply when asked about his purchase.

Among other relatively new buyers was Masami Aramaki, who operates the Papas

clothing manufacturing and retail business and who bought two yearlings by Deep

Impact for a total of ¥77 million

($855,554).

Meanwhile, Riichi Kondo, who has been a big buyer at the JRHA sale for years,

acquired the other ¥60 million yearling, a

stout gray son of Kurofune out of Be Positive (Sunday Silence), a Group 3

stakes-winning full sister to champion To the Victory.

"As usual, I went to Northern Farm to inspect as many yearlings as I could

and this was one of my favorites," said Kondo, who bought six yearlings with his

wife, Hideko, signing the ticket on another. "This is a very buyer-friendly

market; I can buy very nice horses for reasonable prices, so I am very happy as

a buyer. But I'm a bit worried about the industry."

Sellers generally were stoic. Alan Cooper, manager of the Niarchos family's

international bloodstock holdings, said he was pleased that three well-bred

yearlings consigned on behalf of the family by the Yoshidas' Shiraoi Farm were

all sold although each brought less than the sale average.

A colt and a filly by European champion Bago (Fr) sold for

¥6 million ($66,666) and

¥9.5 million ($105,555), respectively.

Another colt, by Agnes Tachyon out of Second Happiness (Storm Cat), a daughter

of international champion Miesque (Nureyev), drew a bid of

¥18 million ($200,000) from Kaneko, who

purchased a total of six yearlings including three by Deep Impact.

The JRHA sale concludes Tuesday with a session of foals, and while some have

predicted that the organization will move more toward yearlings to meet global

standards on the sale of young stock, Teruya Yoshida said he believes foals will

retain a significant place in the sale.

"I'm looking forward to seeing the foal session because the quality of the

foals is as good as in previous years and there has been lots of interest in

them," Yoshida said. "My hope is for higher prices."

Although not usually highly preferred in Japanese sale arenas, yearlings by

American-based stallions sold well during Monday's opening session of the Japan

Racing Horse Association, auction with a son of A.P. Indy leading the way.

The first foal produced by Grade 1 winner Ermine (Exchange Rate), the

strapping chestnut ranked as the fourth highest-priced horse of the session

after drawing a final bid of ¥56 million

($622,222) from prominent owner Takaya Shimakawa.

Consigned by Katsumi Yoshida's Northern Farm, the A.P. Indy colt was foaled

in Japan after Ermine was acquired by Yoshida for $1.3 million at the 2008

Keeneland November sale.

The JRHA sale also generated news for another American-based stallion who had

earned the Horse of the Year title. Shadwell Farm's Invasor (Arg), America's

champion runner of 2006 and winner of the Dubai World Cup (UAE-G1) the following

season, was represented by his first yearling reported to sell at auction

anywhere on the globe.

Invasor's chestnut son out of Concern Nacca (Concern), a half-sister to Grade

1 winner Hystericalady (Distorted Humor) and a daughter of Chilean champion

Sacramentada (Chi) (Northair), was sold for ¥20

million ($222,222) to Nakatsuji Akira. One of the new owners in Japanese

racing, the Kyoto-based Akira, who is in the construction and property leasing

business, was making his first purchase at a JRHA sale.

The Invasor colt was sold by Tsuji Bokujo, which bought Concern Nacca for

$450,000 at the 2008 Keeneland November sale.

Darley Japan, Sheikh Mohammed bin Rashid al Maktoum's growing racing and

breeding enterprise, stepped in to endorse one of the global operation's top

stallions when it bought a colt by Medaglia d'Oro out of multiple Japanese group

winner Preeminence (Jpn) (Afleet). Consigned by Grand Stud, the colt sold for

¥40 million ($444,444).

A Mineshaft filly who is the first foal of stakes winner Moonee Ponds (Mizzen

Mast) was the final yearling by an American-based stallion to sell in Japan on

Monday, going for ¥15.5 million ($172,222).

Consigned by Okada Stud, which bought Moonee Ponds carrying the filly, her first

foal, for $300,000 at the 2008 Keeneland November sale, the yearling's second

dam is Grade 1 winner Lotka (Danzig).

Yearlings by deceased Lawyer Ron and Hat Trick (Jpn), who stands in Kentucky,

were reported as not sold.