A coalition of stallion farms fighting a rule change by The Jockey Club that limits the number of mares bred per stallion per season to 140 are using the recently released Report of Mares Bred for 2021 to show the potential economic impact on their businesses.
In an Oct. 28 supplemental response to The Jockey Club's motion to dismiss, the farms state the Report of Mares Bred show they will be significantly affected by the new American Stud Book rule adopted May 7, 2020. The farms challenging the rule are Spendthrift Farm, Ashford Stud (under the name Bemak N.V.), and Three Chimneys Farm. The Report of Mares Bred shows these three farms stood 23 of 45 North American stallions that bred more than 140 mares in 2021 and 11 of the top 13 stallions by number of mares bred. These 23 stallions covered 4,397 mares in 2021, which is 26% of all the mares bred in Kentucky. If the "stallion cap" were in place, the farms argue, it would be the equivalent of reducing the matings to these sires by 1,177 mares and, therefore, gives them legal standing to challenge the rule.
"Plaintiffs are filing those statistics to show that they remain the parties most impacted by the impending Rule," the supplemental response states.
The Jockey Club stated when it implemented the stallion cap it was addressing a declining and concerning degree of diversity within the Thoroughbred gene pool. Declining genetic diversity has been linked by one study to the trend since 1996 of stallions breeding books of well over 100 mares. The percentage of mares bred to stallions with books of 140 or more grew from 9.5% of all mares bred in 2007 to 27% by 2019, according to The Jockey Club statistics.
The new rule states: "The total number of broodmares bred per individual stallion whose year of birth is 2020 or thereafter shall not exceed 140 per calendar year in the United States, Canada, and Puerto Rico. The Jockey Club shall limit the number of Stallion Service Certificates for such stallions to a maximum of 140 per calendar year."
The Jockey Club filed a motion to have the lawsuit dismissed because it claims the opposing farms have not shown any actual injury caused by the rule, citing case law that an injury must be real and not theoretical or speculative. The "stallion cap" becomes applicable to stallions born in 2020 (meaning colts that are yearlings this year) and later, and does not affect current active stallions.
"What the complaint really sets forth is Plaintiffs' policy disagreement with the 'stallion cap' in Rule 14C—a Rule that is entirely consistent with TJC's mission of protecting and improving the Thoroughbred breed—and Plaintiffs' vague concern that they may have to adapt their business models in some unspecified manner going forward for the good of the breed," stated an earlier filing supporting The Jockey Club's motion to dismiss. "Simply because Plaintiffs do not like Rule 14C does not mean it is an unlawful delegation, violates the antitrust laws, or that its enforcement violates any constitutional right. Plaintiffs lack any authority for the extraordinary proposition that their displeasure with Rule 14C requires this court to force TJC, a private entity, to register Plaintiffs' horses in its breed registry in violation of its own rules. Plaintiffs' complaint must therefore be dismissed."
