21/03/13
Last week on Justracing I penned the first of what was to be three stories re Gai Waterhouse Magic Millions and Inglis yearling sale purchases for both herself and for racing partner Star Thoroughbreds.
In the first story I researched the yearlings that she bought at the 2009 Magic Millions sale at the Gold Coast. In that story which can be revisited HERE, I concluded Gai Waterhouse spent $7,030,000 buying 28 yearlings at that sale and subsequently the 28 yearlings have had cumulatively 283 starts up to and including 12/3/13 and the current loss being sustained on the purchase price alone, without so much as one dollar of expenses being incurred by way of training fees, spelling outlays, vet costs, insurance charges, being paid up for the Magic Millions or Inglis race series, etcetera, is a whopping $5,420,253.
The second article appeared yesterday and related to Star Thoroughbreds 2009 and 2010 Magic Millions and Inglis sale purchases. Gai Waterhouse exclusively buys for that entity – and that story can be revisited HERE. Today in the third and final article on the subject today I’ve researched yearlings bought by Gai Waterhouse at both the 2010 Magic Millions January sale and the Inglis Easter sale. Those yearlings have now had plenty of opportunity to be named and show their talent – if they have any – out on the racetrack of dreams. Understandably some of the undermentioned horses are still racing, but as you will see when you go through the list, on the balance of probability there isn’t enough talent in the entire group to help boost the prizemoney level, subsequent to 15/3/13, to let the income figure outperform the expenses that will be incurred from that day forth, by way of training fees, etcetera.
The list of 2010 January Magic Millions yearlings purchased by Gai Waterhouse reads:
LOT
RACING NAME
PRICE
R/TRACK PERF
(Starts: 1-2-3)
P/M to 15/3/13
PROFIT/LOSS
38
Miss Ready
180,000
10-3-0-1
40,820
-139,180
67
Blended
250,000
13-3-3-2
42,230
-207,770
85
Best Eleven*
170,000
0
0
-170,000
193
Valleyofthekings
225,000
0
0
-225,000
219
King Zero
85,000
5-0-2-2
9,140
-75,860
234
Lady Vuvuzela
85,000
23-1-3-4
18,500
-66,500
339
Marquis of Lorne
37,500
0
0
-37,500
465
Fortius
320,000
0
0
-320,000
476
Just the Tonic
400,000
9-2-0-1
100,730
-299,270
506
Turf Dancer
100,000
2-1-0-0
14,100
-85,900
540
Niagara
620,000
11-2-4-1
238,580
-381,420
568
Tribal Queen
120,000
0
0
-120,000
580
She’s Not
130,000
4-0-1-1
4,200
-125,800
TOTALS:
2,722,500
77-12-13-12
468,300
-2,254,200
*Best Eleven according to official Stud Book records was exported to Hong Kong on 1.8.11 and now races as Piecart so the gelding may have recouped some of his sale price when sold there.
The list of yearlings bought by Gai Waterhouse at the Inglis 2010 Easter sale reads:
LOT
RACING NAME
PRICE
R/TRACK PERF
(Starts: 1-2-3)
P/M to 15/3/13
PROFIT/LOSS
48
Bigglesworth
110,000
4-0-0-1
3,275
-106,725
107
Cylone Stacey
300,000
6-2-0-1
52,850
-247,150
170
Battant
100,000
8-1-3-0
54,700
-45,300
194
Surrcosta
400,000
5-0-1-0
4,150
-395,850
236
Compass
600,000
7-3-3-0
65,350
-534,650
303
Flying Ash
100,000
15-1-1-2
23,900
-76,100
408
Ready in Waiting
150,000
2-0-0-0
0
-150,000
494
Landing
230,000
5-4-0-0
132,000
-98,000
TOTALS:
1,990,000
52-11-8-4
336,225
-1,653,775
So the grand totals of the 21 yearlings cumulatively purchased by Gai Waterhouse in 2010 at the January Magic Millions sale and the Inglis Easter sale reads:
TOTAL PAID FOR ALL YEARLINGS
R/TRACK PERF
(Starts: 1-2-3)
P/Mto 15/3/13
PROFIT/LOSS
4,712,500
129-23-21-16
804,525
-3,907,975
So from the grand total figures I can deduce the following –
1. Some of the aforesaid 21 yearlings are still racing and as such they may still earn some prizemoney in the future, however that prizemoney will have to be offset against other costs the horse incurs.
2. Not so much as one solitary dollar of training fees, spelling costs, paying up to allow the yearling to be eligible for future Magic Millions or Inglis bonus race series, vet, or transport costs is included in the profit/loss figure above.
3. As at today, the loss of $3,907,975 (2,254,200 + 1,653,775) on purchase price $4,712,500 (2,722,500 + 1,990,000) means her yearlings have lost 82.93% of their total purchase as at 15/3/13.
4. The 21 yearlings have cumulatively raced 6.14 times each.
5. The 21 yearlings have each won 1.09 races on average – and that race is generally not a city Saturday race.
6. Not one of the 21 yearlings purchased by Gai Waterhouse has come remotely close to repaying its purchase price, let alone pay for its other associated training fees, spelling costs, vet fees, transport costs, etcetera.
7. Average purchase price per yearling of the 21 yearlings is $224,405.
8. Average earnings per yearling of the 21 yearlings is $38,311.
Additionally a reader has emailed me to advise that my figures issued for Gai Waterhouse in Part 1 last week overstated both 1) the prizemoney and 2) the number of wins she had with those horses that she bought as yearlings stating, “it should be noted that the fourth highest earner in your list, Extreme Mover, won six of his seven races and therefore the majority of his $150K + prizemoney long after he left the stables of Gai Waterhouse and moved to Oakey to be trained by Peter Sexton, where he’s been a bit of a cushion track star in Toowoomba. Ditto the bottom listed horse, Tabassi, which has been trained for all of its life by Matthew Dunn at Murwillumbah. Not one dollar of that horse’s prizemoney was earned when he was in the stable of Gai Waterhouse as he only ever started in barrier trials for her. So, if anything, the paltry prizemoney returns quoted flatter Gai’s record with her 2009 yearling buys”.
Another reader emailed to say that Waterhouse bought current 3YO Pierro as a yearling and that he’s already been syndicated for more than 20 million dollars and before that she’d bought Sebring as a yearling. Let me say that Pierro doesn’t appear here as I haven’t researched that year yet, as that would be grossly unfair and premature, given the fact that many yearlings that were bought in the same year (2011) as Pierro – 1) haven’t raced yet, and 2) most are still racing.
Waterhouse may well have selected Golden Slipper winner Sebring also when he went through the yearling sales ring in 2007, but she did so for Star Thoroughbreds, the point being that whilst there is no denying that those limited number of persons who purchased one or more shares in yearlings bought by Gai Waterhouse and Star Thoroughbreds since 2007* inclusive, in horses that subsequently raced as Sebring and Pierro, certainly created a tremendous financial windfall for their part owners, to be balanced, and in the vast majority of instances, whether buying into a Gai Waterhouse yearling or a Star Thorougbreds yearling since 2007 inclusive – the person buying the share, will, on the balance of probability, suffer a major financial loss from buying that share.