THE PROPOSAL

The introduction of new protocols and custom charges with sending thoroughbreds to the EU in our case primarily Ireland and France should be concerning to the UK breeders. The costs are going to increase dramatically and the added paperwork and protocols in place are going to mean that the flexibility we enjoyed in 2020 is no longer there. Breeders are now going to rely on Transport companies for shuttling their mares to Ireland and France. This is going to restrict timings and increase travel and boarding costs for all involved. The protocol in place suggests that we are now no longer able to travel foals under the age of 30 days old. This is going to severely restrict UK breeders covering mares on their first cycle post foaling and completely rule out covering foal heat covers.

Industry Direction

It is concerning that the bloodstock super powers now lie in the hands of the French, Irish based studs and the Dubai-based racing operations within the UK.  Looking at the stallions that are standing for the first season in 2021 there are 9 stallions standing in their first year for 20,000 Euros or more. Four of those stallions are standing in Ireland. Two standing in France.  Mohaather and Pinatubo are standing in the UK but are both owned by Dubai-based operations and shares or breeding rights weren’t offered to the UK breeders. That leaves 2,000 Guineas winner Kameko who is standing at Tweenhills. Limited Breeding rights were available in Kameko, but this is the only first season sire standing in the UK in the price bracket 20,000 Euros and above.

Qatar Racing and David Redvers did a great job sourcing this horse and campaigning him to win two Group 1’s.  However, they cannot be relied upon to produce the stallions year in/ year out who will then go on to stand in the UK.

Looking forward, we as UK breeders should be hugely concerned that the stallions in the 20,000 Euros bracket going forward will continue to stand in Ireland, France or in Dubai-based operations hands.

 

2021 UK Based First Season Sires

Both Whitsbury and Newsells recruited new stallions to their ranks in 2021 in the form of Sergei Prokofiev and both offered breeding rights in both stallions to the UK breeders. Both stallions are standing at the lower end of the price range at £6,500 and £10,000.  These studs should continue to do so and the aim of this project is not to compete at the £10,000 and down price bracket. UK Studs should continue to do so, but what we need to do collectively is combine to purchase the stallions who are going to stand in the higher price brackets.

 

2021 Proposal

The Stallion Syndicate aims to protect UK Breeders long term futures by collaborating and working together to secure the best stallions when they come on to the market and prevent them from standing in either France or Ireland where access to them is going to be expensive and unachievable. 

The Maths/Model

 

The Stallion Syndicate project in 2021 is to comprise of 150 shares. Each share is entitled to one nomination in each stallion each year. Each stallion is also able to cover further mares above the 150 at the advertised covering fee.

 

All proceeds from the further covers will be divided up equally amongst the 150 shares after costs. A small management committee will be formed (Nick Bradley, Sam Hoskins, Ed Harper and Tim Lane) and there will then be a further committee which will include all of the larger shareholders within the 150 shares available. The choice of stallion at an agreed price has to be passed by a minimum of 65% by the board.

 

The Stallion is to be syndicated as follows:

Each of the two founders would receive one free share each as remuneration for the management of all aspects of the stallion.

The price of a share is to be determined by totalling the numbers shown above and dividing by 148.

For example,

  • Purchase cost £3,000,000

  • First season Fertility £350,000

  • Advertising and Travel Allowances £60,000

  • £3,410,000 divided by 148 = £23,040 per share.

 

 

Each shareholder can purchase further nominations  at a reduced price of 75% of the advertised fee. They are restricted to a maximum of one per two shares owned.

 

For example, Shareholder A who owns 6 shares in the Syndicate can purchase a maximum of 3 further nominations at 75% of the advertised fee. Each shareholder will be entitled to one nomination per year, with the ability to send a mare in the following year free of charge if the mare fails to foal a live foal. Each shareholder has the ability to sell their nominations each year via agents or their own stud operations.

 

Standing the Stallions

In 2021 the Stallion is to stand at the National Stud, Newmarket. After that, where each Stallion will stand will be up for negotiation amongst the committee.