Months before Keeneland's September Yearling Sale, management and staff realized they would be operating under extraordinary circumstances, if the sale was even able to take place, considering all the restrictions placed on businesses and public places as a result of the COVID-19 pandemic.
With the expectation that many buyers would be unable, or unwilling, to attend the sale due to the coronavirus, Keeneland made a commitment to incorporate online bidding into the live auction process.
That decision proved most prescient as the 12-day auction concluded Sept. 25.
With 4,272 head cataloged for the 12 sessions that began Sept. 12 (with one dark day), Keeneland reported 2,474 horses grossed $248,658,800 for an average price of $100,509 and a $39,500 median. The 844 horses that went unsold represented an RNA rate of 25.4%.
Not unexpectedly, those figures were well off the pre-pandemic bull market in 2019 when 2,852 yearlings were reported sold for a total of $359,919,700, an average of $126,199, and a $45,000 median.
The 2019 September sale was highlighted by a record-setting American Pharoah filly sold for $8.2 million, one of 22 yearling transactions for seven figures during the 13-day venue. This year, 15 yearlings were sold for $1 million or more.
During Friday's final session, 166 yearlings sold for $1,134,500, an average of $6,834, and a median of $4,500. Stonehaven Steadings consigned the $45,000 high seller, a colt by Cupid purchased by Scott Gelner, agent.
This year's topper was a Tapit colt bought by a partnership consisting of Eclipse Thoroughbreds, Robert LaPenta, Gainesway Farm, and Winchell Thoroughbred for $2 million from Eaton Sales, agent for Stonestreet Bred & Raised, which retained a small interest in the colt with the new buyers.
Keeneland officials said extensive efforts by its personnel and the determination of buyers and sellers to participate ensured that the sale came off.
"First and foremost, we are delighted we have been able to have the sale," said Shannon Arvin, Keeneland's president-elect and interim head of sales. "We are proud of all of our folks and the effort they put into it and are so appreciative of the resilience of the industry that came out and supported the sale and conducted trade. Everybody understands the times we're in, and I think everybody was appreciative throughout the whole industry that we had a sale."
"Several people, myself included, by mid-July probably had a fear of God that we weren't going to have a sale," said Geoffrey Russell, Keeneland's director of sales operations. "Full credit for this year's September sale goes to everyone—breeders, consignors, owners, buyers, agents, trainers, and countless other people—for their cooperation in following the health and safety protocols and adapting to the new forms of buying that allowed us to offer this important market in this unusual time. It certainly wasn't your normal September sale, and we know it wasn't easy. We sincerely thank all who participated and made the best of the challenging circumstances. We look forward to 2021 and the return of the hustle and bustle."
The sale grounds were limited to those essential to the process—Keeneland personnel, consignors and their employees, buyers, agents, breeders, media—all of whom had to meet certain criteria and were subjected to daily temperature checks. Other pandemic-related health and safety protocols included reconfiguration of part of the layout of the facility to promote social distancing and a mask requirement of participants inside and outside the pavilion.
In addition to internet bidding, Keeneland expanded its phone bidding option and added a third on-site bidding location in the rear covered show ring that proved a popular spot for many of the most active bidders, particularly since pavilion seating was limited to 40% capacity.
Shannon said internet bidding lived up to expectations with 126 yearlings sold via that format for $12,165,000. There were 1,859 internet bids. One Japanese-based buyer, Yuji Hasegawa, acquired a Tapit colt for $825,000, the top price for the internet, and an Arrogate colt bought for $750,000.
"Online bidding worked as smoothly and was as popular among buyers as we had hoped," Arvin said. "When you try something new, you kind of hold your breath to see how it goes. We are very pleased with our partner, Xcira (Auction Technologies), and the online auction technology system, as well as the level of participation by buyers."
The sale began on a mixed note as Book 1 had its usual share of pricey yearlings but a high buyback rate.
Absent from the buyers' list was Sheikh Mohammed bin Rashid al Maktoum's Godolphin operation, which in 2019 was leading buyer with 10 yearlings bought for $16 million, followed by Sheikh Hamdan al Maktoum's Shadwell Estate Co. that had purchased 18 for $11.07 million. Shadwell this year accounted for nine yearlings acquired for $5.42 million.
This year's leading buyer was Donato Lanni, agent for SF/Starlight/Madaket. On behalf of the partnership, Lanni purchased 28 colts for $11.25 million.
For the sixth year in a row and the 22nd time since 1988, Taylor Made Sales Agency was the September sale's leading consignor, with 252 horses sold for $29,783,400.
"There were certain major players that weren't playing in the market this year and obviously had a huge impact on Book 1," Russell said. "Last year was one of the strongest September sales we've ever had. And even without COVID, I think it would be hard for us to replicate that. With COVID, travel restrictions for certain people, and a change of plans for some people, it had a strong effect on parts of the market."
Arvin said that with the 15 seven-figure yearlings bought by 14 different people, it indicated a broad buyer base.
"We were really encouraged by the broad numbers of buyers that were participating at multiple levels, including the top level," she said.
The RNA percentage declined as the sale progressed, and there was a more vibrant and competitive atmosphere as the sale continued.
"The second week has been a lot stronger than I anticipated," Russell said, noting that many of the horses offered early in the sale are being bought for either their residual value or future stallion potential, based on sire power and pedigree. "In Books 3, 4, and 5, that market has held up remarkably well. Racing is doing well; purse structures are good. There is a potential to get a good return. In the books in the middle market, they're really buying the product to race and to try and get return on investment on the racetrack. At the moment, I think you can still do that on the racetrack."
"Breeders are to be commended for bringing a very good crop of yearlings to market," Keeneland director of sales development Mark Maronde said. "The value found here encouraged strong trade through the entire sale. Horse people are optimists in the best of times, and here they are, while there are no fans at many racetracks and with all the uncertainty in every facet of life, doing more than $238 million worth of commerce. That's huge."
Arvin said as of now the same COVID-19 protocols will be in place for Keeneland's next auction, the November Breeding Stock Sale that begins Nov. 9.
"As of today, it is looking like we will be working under similar protocols in November," she said.
Russell said the November sale will run 10 days, as it has fewer weanlings and mares entered as a result of the anticipated COVID-19-affected marketplace.
"The November sale will be reduced by about a Book this year," he said. "The September sale is the crop and the November sale is the factory, and breeders are retaining their mares or their weanlings in hopes that 2021 will be a better market."
