Page 76 - Majestic Vol.03

THE MECHANICS OF STALLION Tapit Fastnet Rock
INVESTMENT 灯塔岛
for him to cover a mare is ¤350,000 (RMB
The China Horse Club has already 2.5 million). At his peak he is covering at
positioned itself and its members to least four mares a day. That means during
capitalize on potential opportunities of this the breeding season he is generating
scale. The 2014 Co-World Champion Three- approximately ¤1.4 million a day. He is
Year-Old colt Australia headlines a list of getting older now but in 2013 he still
elite stallions that includes the 2014/15 covered almost 180 mares so the potential
Australian Horse of the Year Dissident, the revenue he generated was ¤63 million
G1 winner Wandjina, and boom sprinter (RMB 445 million) over about four months.”
Deep Field. It also has an interest in
three of Australia’s star colts Vancouver, Astute valuations of a stallion will see them
Pride of Dubai and Press Statement. return their full investment before their
Collectively these three colts are valued first progeny (sons and daughters) hit the
at approximately AUD 90 million (RMB racetracks of the world. It means that an
409 million) and who could blast through investment should, at worst, break even
the AUD100 million RMB481 million) mark before the marketplace can accurately
before they retire from racing in the next 12 determine the ability of the stallion to
to 24 months. father above average athletes.

“Most people don't understand how one
horse can be worth so much money and
that's understandable unless you explain
it to them. You need to think of them not
simply as horses but as businesses. They
generate a product like a factory. The value
of a stallion is determined by the value of
the product they create and the commercial
appeal of that in the marketplace. The
greater the demand and the greater the
value of the product, the higher the value
of the stallion," Teo said.

“A few years ago the undefeated world
champion Frankel retired to stud and was
being valued in the British media at £100
million. You might say to yourself 'how is
one horse worth a medium size business?'
but it is possible.”

In 2014 a share in the champion Kentucky
based sire Tapit was sold at public auction
for USD 2.8 million. With the syndicate
made up of 50 shares it valued the sire at
USD140 million (RMB 870 million). It is a
heady rise for those who were lucky enough
to buy into Tapit when he retired to stud in
2005 at a service fee of USD35,000 (RMB
218,000). In 2015 he was the most valuable
stallion in the United States standing at a
service fee of more than eight times that
initial figure at USD300,000 (RMB 1.8
million). Only the exceptional Galileo stood
at stud for a higher fee in 2015.

"You look at a stallion like Galileo. He is
the world’s best stallion at reproducing
excellence, and by that I mean his sons
and daughters are statistically more likely
to be champions than any other sire,” Teo
continued.

“It is believed that the fee you have to pay

I Am Invincible
隐形人

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