“The industry has a broken economic model.”
February 6th 2009 22:44
“The industry has a broken economic model.” - Jess Jackson.
(photo: Kendall Jackson)
In this time of financial crisis around the world, horse racing is an obvious barometer of recession and confidence. Investment in the thoroughbred is a speculative enterprise.
Sales results have declined drastically all around the globe in this new year. Both in the US and Australia the leaders (Obama and Rudd) have talked about a new economic model that moves away from unrestrained capitalism. It is a time for new and creative thinking on many fronts.
It was with great interest then that I read an interview in the Thoroughbred Times with Jess Jackson, the iconic owner of the champion Curlin, who gives his sometimes controversial views on subjects ranging from the current world financial crisis, to horse racing as a sport and spectacle.
Financial imperatives can ruin a sport. I have long bemoaned the fact that the breeding industry now controls the quality of the racing that the fans get to see. Both colts and fillies are rushed prematurely from the racetrack to the breeding barn.
In Australia we may be in a more fortunate position than some other countries with our less strident attitude to geldings. Efficient, as a gelding, won the Victoria Derby - then would subsequently win a Melbourne Cup as a 4 year old. Bad example some would say, as Derby winners are not (now) so sought after as stallions. But take then the brilliant Weekend Hussler, a gelding who would win the Caulfield Guineas and a Newmarket Handicap. The Caulfield Guineas an approximate equivalent to the English 2000 Guineas. In England neither Weekend Hussler nor Efficient could have contested the classic races. But unlike New Approach and Henrythenavigator, now retired, Australia gets to see these horses grace a stage and become part of an ongoing narrative (not just a short story). And of course the Cox Plate has no restrictions on geldings as does the Prix de l’Arc de Triomphe.
It is a fine line to be drawn between improving the genetic pool of the thoroughbreds, and maximising the interest on the racetrack. I don't recommend gelding as a cure all (to anything). But perhaps there needs to be restrictions on (say) the number of mares a three (or four) year old colt/stallion may serve. A limit. There would be a promising income - but not an immediate windfall. And at 5 years all limits would be removed. There needs to be some way of making early retirement a neutral financial situation when opposed to the prospect of prizemoney on offer for a subsequent racing season.
But that's enough of my thinking tangents after reading Jess Jackson. He explores many pertinent topics. I have picked out my highlights:
The opinions of Jess Jackson (as told to The Thoroughbred Times)
On the retirement of Curlin:
"I want him to be remembered as a world champion and one of the best of the last 100 years or so. I would’ve loved to have raced him another year, but there wasn’t any venue or sufficient compensation for that. I still don’t think he was fully developed. But the world is a financial world and we have to pay attention to the costs as well as the desire to have him in the breeding shed because I think he could add something to that as well."
On the economic model that demands early retirement for champions:
“I would’ve loved to, of course [continue to race Curlin]. The owner has the risk. And insurance probably would’ve exceeded a large part of what he could have earned. So there’s the final aspect of it that loomed below the surface. Subliminally, you have to be aware of that. But at the same time, I would’ve loved to have raced him if there had been adequate purses and more races for him to enter."
"The industry has a broken economic model. It concentrates on two-year-olds and three-year-olds. And then there’s a race to the breeding shed. I’d love to see them race in, let’s say, a four-year-old series of classic races which would endear the fans to champions and ingrain more spectators as a marketing lure for the industry. Having come from other industries, I don’t want to be too critical ... but the [racing] industry has been lacking marketing skills. One of the greatest thrills in the world is a fabulous race like the [Prix de l’] Arc [de Triomphe (Fr-G1)] or Kentucky Derby or any of the classic races, the Breeders’ Cup, and the Dubai World Cup. It’s an economic issue for most. We can’t afford to race them that way any more. But if we had bigger purses and more races, more people would be inclined to race as we did."
"The industry's been breeding too many horses of mediocre talent. Probably the whole industry, given the economics, will be curtailing the number of foals that are developed. There are simply too many of mediocre quality. We should get back to shorter books & higher quality."
On synthetic tracks:
"Good for training, poor for racing! It allows the breeders to continue to breed weak-boned horses. As an industry we should honour turf & dirt, the natural surfaces that horses have run on for centuries. . . . . California is at a disadvantage now by having so many false surfaces. Although I have to admit, it has helped a lot of horses. If we're going to continue to breed weak horses, then we will continue to need Polytrack or whichever kind it is."
On banning the use of steroids:
"I hope they adopt even more stringent requirements. And more importantly, enforcement. The issue is largely one of enforcement. There's no uniform enforcement throughout the US. . . . . The lack of enforcement of our rules, even though we have high standards, makes us a laughing stock in certain circles overseas. Now that's just my patriotic take."
On sales integrity:
"We need transparency in the auction sales. For instance, we should eliminate false bidding & hidden identities."
On the current economic downturn:
"The breeders are finally getting a break. A lot of the sire prices are going down. . . . . It's healthy for the industry to see the breeders get a break. They have huge investments in their mares, but with the sire fees too high they can't expect, with the volume of foals going to the market, to get a reasonable return. Now the industry is adjusting. I think the current recession will continue to last for a while, maybe 2 or 3 years. But that's going to give the breeders a chance to have better cost-benefit ratios. Maybe more of them will breed less, and breed better, and help the whole industry."
Jess Jackson
(photo: Kendall Jackson)
In this time of financial crisis around the world, horse racing is an obvious barometer of recession and confidence. Investment in the thoroughbred is a speculative enterprise.
Sales results have declined drastically all around the globe in this new year. Both in the US and Australia the leaders (Obama and Rudd) have talked about a new economic model that moves away from unrestrained capitalism. It is a time for new and creative thinking on many fronts.
It was with great interest then that I read an interview in the Thoroughbred Times with Jess Jackson, the iconic owner of the champion Curlin, who gives his sometimes controversial views on subjects ranging from the current world financial crisis, to horse racing as a sport and spectacle.
Financial imperatives can ruin a sport. I have long bemoaned the fact that the breeding industry now controls the quality of the racing that the fans get to see. Both colts and fillies are rushed prematurely from the racetrack to the breeding barn.
In Australia we may be in a more fortunate position than some other countries with our less strident attitude to geldings. Efficient, as a gelding, won the Victoria Derby - then would subsequently win a Melbourne Cup as a 4 year old. Bad example some would say, as Derby winners are not (now) so sought after as stallions. But take then the brilliant Weekend Hussler, a gelding who would win the Caulfield Guineas and a Newmarket Handicap. The Caulfield Guineas an approximate equivalent to the English 2000 Guineas. In England neither Weekend Hussler nor Efficient could have contested the classic races. But unlike New Approach and Henrythenavigator, now retired, Australia gets to see these horses grace a stage and become part of an ongoing narrative (not just a short story). And of course the Cox Plate has no restrictions on geldings as does the Prix de l’Arc de Triomphe.
It is a fine line to be drawn between improving the genetic pool of the thoroughbreds, and maximising the interest on the racetrack. I don't recommend gelding as a cure all (to anything). But perhaps there needs to be restrictions on (say) the number of mares a three (or four) year old colt/stallion may serve. A limit. There would be a promising income - but not an immediate windfall. And at 5 years all limits would be removed. There needs to be some way of making early retirement a neutral financial situation when opposed to the prospect of prizemoney on offer for a subsequent racing season.
But that's enough of my thinking tangents after reading Jess Jackson. He explores many pertinent topics. I have picked out my highlights:
The opinions of Jess Jackson (as told to The Thoroughbred Times)
On the retirement of Curlin:
"I want him to be remembered as a world champion and one of the best of the last 100 years or so. I would’ve loved to have raced him another year, but there wasn’t any venue or sufficient compensation for that. I still don’t think he was fully developed. But the world is a financial world and we have to pay attention to the costs as well as the desire to have him in the breeding shed because I think he could add something to that as well."
On the economic model that demands early retirement for champions:
“I would’ve loved to, of course [continue to race Curlin]. The owner has the risk. And insurance probably would’ve exceeded a large part of what he could have earned. So there’s the final aspect of it that loomed below the surface. Subliminally, you have to be aware of that. But at the same time, I would’ve loved to have raced him if there had been adequate purses and more races for him to enter."
"The industry has a broken economic model. It concentrates on two-year-olds and three-year-olds. And then there’s a race to the breeding shed. I’d love to see them race in, let’s say, a four-year-old series of classic races which would endear the fans to champions and ingrain more spectators as a marketing lure for the industry. Having come from other industries, I don’t want to be too critical ... but the [racing] industry has been lacking marketing skills. One of the greatest thrills in the world is a fabulous race like the [Prix de l’] Arc [de Triomphe (Fr-G1)] or Kentucky Derby or any of the classic races, the Breeders’ Cup, and the Dubai World Cup. It’s an economic issue for most. We can’t afford to race them that way any more. But if we had bigger purses and more races, more people would be inclined to race as we did."
"The industry's been breeding too many horses of mediocre talent. Probably the whole industry, given the economics, will be curtailing the number of foals that are developed. There are simply too many of mediocre quality. We should get back to shorter books & higher quality."
On synthetic tracks:
"Good for training, poor for racing! It allows the breeders to continue to breed weak-boned horses. As an industry we should honour turf & dirt, the natural surfaces that horses have run on for centuries. . . . . California is at a disadvantage now by having so many false surfaces. Although I have to admit, it has helped a lot of horses. If we're going to continue to breed weak horses, then we will continue to need Polytrack or whichever kind it is."
On banning the use of steroids:
"I hope they adopt even more stringent requirements. And more importantly, enforcement. The issue is largely one of enforcement. There's no uniform enforcement throughout the US. . . . . The lack of enforcement of our rules, even though we have high standards, makes us a laughing stock in certain circles overseas. Now that's just my patriotic take."
On sales integrity:
"We need transparency in the auction sales. For instance, we should eliminate false bidding & hidden identities."
On the current economic downturn:
"The breeders are finally getting a break. A lot of the sire prices are going down. . . . . It's healthy for the industry to see the breeders get a break. They have huge investments in their mares, but with the sire fees too high they can't expect, with the volume of foals going to the market, to get a reasonable return. Now the industry is adjusting. I think the current recession will continue to last for a while, maybe 2 or 3 years. But that's going to give the breeders a chance to have better cost-benefit ratios. Maybe more of them will breed less, and breed better, and help the whole industry."
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