How Do Horse Auctions Work? A Complete Guide to Buying and Selling Horses
The sales ring is an oft-used term in horse racing to describe the buying and selling of racehorses. The sales ring is often a public auction where bloodstock trading is undertaken.
There are various types of sales – local, regional and national – that take place in countries where racing is popular, while there are also major international sales such as those run by Goffs and Tattersalls, and big sales events that take place at major racecourses.
While at local level it is possible to trade for modest fees, in the hundreds, the major international sales rings can see horses traded for millions in seconds.
Traditionally, horse auctions are done in real time in a confined space, with the horses paraded and the buyers/sellers in the room. As with the modern world, this is ever changing and it is now prevalent for auctions to take place online as prospective buyers place a lot of faith in breeding lines and pedigree more than physical appearance.
What Types of Horse Auctions Are Available?
There are different types of auctions featuring horses at various stages in their development/careers. These include:
Weanling/Foal sales: Young horses aged one year and under that are bought mainly by breeders for resale.
Yearling sales: Horses aged around a year, not yet trained to race but buyers can assess bloodlines, physical conformation and potential for racing.
2-year-olds in training sales: Juveniles that may already have partaken in breeze-ups or barrier trials allowing buyers to assess performance.
Broodmare sales: Mares to be used for breeding.
Horses in training sales: Horses that have already raced or are in mid-career.
Traditional Ring Sales
Traditional ring sales feature horses being presented to potential buyers for sale. The buyers can assess the physical characteristics of each horse based on what they see, having already studied the pedigree based on the catalogue of lots they are going to be shown. An auctioneer then takes control of the sale, meeting guide prices etc. and allowing live bidding to take place in order to maximise potential sales for breeders/vendors. As with any live auction, it can be fast-paced and exciting to find out where the price will end up!
Some of the biggest traditional sales rings are located at Tattersalls, Keeneland, Fasig-Tipton, Cheltenham, Newmarket and the Curragh.
Online Auctions
Online horse auctions differ in that the horses for sale and the prospective buyers are not in the same room at the same time. Sources like Tattersalls Online have monthly sales, offering horses & fillies in/out of training, broodmares, 2YOs, point-to-pointers, stores, yearlings, foals, breeding mares and more. Fasig-Tipton Digital is North America's premier online sales ring. Online sales involve horses being marketed through online catalogues with full breeding and pedigree info and videos.
How Does the Horse Auction Process Work?
The movement of horses through sales, online and in person, is crucial to the thoroughbred industry and it has been proven over hundreds of years as the established sales method.
Consigning Your Horse
Consigning a horse for sale is effectively giving it a sales agent, someone that has responsibility for making it marketable. Their primary job is to prepare and present horses for sale. A consignor is responsible for showcasing a horse's pedigree, health, and potential to prospective buyers in the best possible light.
Consignors typically work on a commission-basis and will seek 5-10% of the fee plus VAT, though these figures are negotiable.
Buyer Registration and Bidding
Buyers must be registered before any sales. Live Bidding online provides a way to submit live bids to the auctioneer via a bidding screen without the need to be on site at major sales events.
Once you have logged in you can follow the auction live via the dedicated video and audio stream and submit bids at the price offered on the bid button. Once submitted your bid will be pending until accepted by the live auctioneer. If your bid is accepted you will be indicated as the highest bidder on the bidding screen.
All bids on horses at sales are legally binding, ensuring that prospective buyers should be well informed before engaging.
Which Are the Major Sales Houses and Events?
The likes of Tattersalls, Goffs, Keeneland and Fasig-Tipton Digital are amongst the marquee names in the world of horse racing sales, with long histories of trusted peer-to-peer selling.
They are the heavy hitters in the world of bloodstock trading and their significance and prominence ensures the future of the thoroughbred industry.
Premier Thoroughbred Sales
Some of the key sales events in the world include Tattersalls' October Sales, Keeneland's September Sale, and Fasig-Tipton's Saratoga Sale and the November breeding stock sales following the Breeders' Cup. There are also major sales events at Cheltenham and Newmarket in Britain.
These key sales can often be headlined by horses trading for seven-figure sums as the world's iconic breeding operations, including Godolphin, Coolmore and Juddmonte, engage in hugely competitive bidding wars.
Understanding Auction Pricing
Performance data, including fitness, speed, and health metrics, are crucial for evaluating a horse's potential and value. These are often used to pre-determine agreed prices, or reserve prices, before a sale begins.
Essential Auction Terminology
Reserve: A pre-determined price under which a horse will not be sold at auction.
RNA: short for "reserve not attained" is another way of indicating a no-sale.
Vendor: The Vendor is the person, partnership or corporation named in the entry form as Owner of the Lot for sale.
Hammer price: The hammer price is the winning bid for a lot at auction. It is the price upon which the auctioneer's hammer falls, determining the sale price, excluding certain fees.
Conditions of sale: All horses are available to view at the complex in advance of the sale. Each horse is sold with a veterinary cert, this outlines any vices or issues a horse may have. All veterinary certs are read out when the horse enters the sales ring. Alternatively, ask the vendor about the horses veterinary cert when you inspect them.
What Are the Potential Pitfalls and Red Flags?
Racehorse auctions involve bidding battles influenced by pedigree, conformation, and demeanour. Understanding the process is crucial for success.
Engaging a bloodstock agent when purchasing at a sale is the best way to avoid pitfalls, as they can assist with pedigrees and physical attributes to look out for.
Success Tips for Auction Participants
Seeing the horse first hand allows assessment of condition and helps verify if a reserve price is set, ensuring a good purchase.
Respect auction etiquette; inquire about reserve prices only on the sale day to avoid complications.
What Should Buyers Know?
Buying horses is typically expensive. Set budget limits and avoid impulsive bidding at auction. Engage with industry experts for advice to ensure sound investments.
What Should Sellers Know?
Sellers need to make the most from what they are offering. Consignors and Bloodstock Agents can assist with the process. Professional presentation of each lot will help with the process and should lead to maximising sales potential.
Conclusion: Mastering Bloodstock Trading
The trading of racehorses is a mega business and getting involved presents financial risks. Equally, for breeders, trading can be hugely profitable. Getting equipped with the right knowledge, resources, and strategies is critical before presenting at the sales, either online or in person.