Rationalisation will be good for industry—agents

Press, 25 July 1989, Page 35

Rationalisation will be good for industry—agents

NZPA-AAP Sydney The racing industry faces a major rationalisation but will emerge stronger than ever after the announcement of yearling sell-offs by two top trainers this month, according to prominent bloodstock agents. The reaction came after news that premier trainer, Tommy Smith, is meeting with representatives of William Inglis and Sons Bloodstock on Thursday to organise the sell-off of 45 yearlings bought by Tulloch Lodge Limited at the Sydney Easter Yearling Sales.

Bart Cummings, who competed with Smith tor the title of biggest buyer at the same sales and accounted for between one and two per cent of the total sale turnover, announced a similar plan several weeks ago. In the last decade, the gross from the Sydney sales has risen from sAust4.4 million to sAust24M ($31.2M) last year. Smith floated Tulloch Lodge as a public company late last year, and there were whispers that the stable was having trouble recouping its massive layouts on yearlings in April when 1588 parts in the company remained unsold.

The whispers were proved right with Smith’s announcement last Sunday night

But the damage to the industry’s credibility from these collapsed floats is outweighed by the usefulness of the long term lesson to big investors, said Graham Orr, an independent bloodstock consultant

“This is bad for all the industry as far as reputation goes. The ramifications are serious but in the long run it should only affect the top section of the market,” Mr Orr said. Another prominent thoroughbred expert Harry Lawton, manager of Lawton Bloodstock, agreed wholeheartedly. Mr Lawton has sold 553 partnerships in 15 years of business, and pioneered the technique of creating racing partnerships in Australia. His most famous syndication must be the 1987 Melbourne Cup winner, Kensei, which cost sAustls,M9 as a yearling and was sold by Mr Lawton in six partnerships at sAust37s9 each. Mr Lawton believes that his method is more practical in the current economic climate, and that giant floats of expensive bloodstock Ignored the largest section of the racing community.