STARTING a new job often presents fresh challenges, but how about taking over as chief executive officer for one of bloodstock’s biggest institutions, in the middle of a pandemic?
That is exactly the “whirlwind” venture that Simon Kerins embarked on when succeeding Matt Mitchell at the head of Tattersalls Ireland on January 1st, 2021, less than a year into the outbreak of Covid-19. It was a time when the only certainty seemed to be uncertainty.
Of major benefit to Kerins was his experience and knowledge of the Co Meath-based operation. He joined Tattersalls Ireland in 2000 and had been a member of the Tattersalls Ireland board since 2004, initially as marketing director and later as bloodstock sales director when serving as a senior member of the auctioneering and inspection teams.
Still, the combined challenges presented by coronavirus, Brexit, a cost of living crisis - and more recently Russia’s invasion of Ukraine - have created one of the most challenging environments for businesses in living memory. It has all made for an action-packed first two years for Kerins as Tattersalls Ireland’s chief executive officer.
“I can remember people telling me when I was younger here that time always seems to go so fast, and it definitely does,” says Kerins.
“I started the job right in the middle of Covid and there were so many things to juggle, so much uncertainty and so many questions posed to me on a daily basis that I wasn’t able to give definite answers for. People wanted direction, so we would tell them how we were thinking but it was a time of some unknown.
“It’s a great benefit to be able to bounce suggestions and ideas off the various different brains in the company. Our chairman Edmond [Mahony] has a lot of experience and his advice is always sound. He’s level-headed when it comes to these things, while there would also be advice volunteered from outside the company. You take everything on board.
“Looking back at 2021, so much happened. In January we didn’t know where the breeze-up would be; we hadn’t even started inspections yet. We had a February Sale that was initially moved to March and then got cancelled [due to Covid-19 restrictions], which I believe was the first sale to ever be cancelled here. Many of that section of horses, mainly weanlings, ended up getting moved into the December National Hunt Sale.
“It’s an example of how the whole period has been a whirlwind since starting this role. Every day is a learning day.”
Resolute statistics
Despite unprecedented times delivering unprecedented challenges, Ireland’s bloodstock trade has shown impressive resilience.
Statistics recently released by Horse Racing Ireland for 2022 showed a 30.3% increase in the level of bloodstock sales at public auction compared to before the pandemic in 2019, with a total of €215.4 million going through Irish sales rings last year (up from €165.3 million in 2019).
Kerins views the quality work of Irish vendors, combined with a potential shift in attitudes from buyers since the pandemic, as factors in the strong auction trade last year.
“It was an extraordinary year,” Kerins says, whose organisation backs the Grade 1 Tattersalls Ireland Novice Hurdle at the Dublin Racing Festival at Leopardstown on Sunday.
“The demand for bloodstock has remained steadfast for a while. The one thing that was always evident with bloodstock sales was that it followed any economic curve. What went up went down.
“But it seems to be on a gradual incline now for a long, long time. It’s a wonderful demand to see. Whether that’s a psychological fallout from Covid worldwide that people are wanting to buy horses, that they may have a different view on life, is interesting.
“Irish people are traders by their nature, especially in the bloodstock world. In every facet of the game, whether they be National Hunt foal vendors, breeze-up consignors or trainers, Ireland is where it’s at on the global stage. It really is. People are hungry and there’s a great appetite for horses.”
Solid markets
It appears as though the breeze-up and point-to-point sectors have been particularly solid areas for trade in recent years. Tattersalls Ireland’s Goresbridge Breeze-Up Sale saw a new record top price of €520,000 last year, the first time in the sale’s history that the half million mark has been exceeded.
There was also a record 11 six-figure lots, including four lots who sold for upwards of €200,000 and an overall 85% clearance rate.
The Tattersalls Cheltenham Festival Sale last March saw 23 of 26 lots sold for an average of £145,783, including top lots of £370,000, £350,000 and £310,000.
Such returns imply an increased desire from some buyers to purchase horses who are close to making their debuts on the track.
“I think the breeze-ups are a remarkable segment of the market in that they’re a very proactive group who do an incredibly good job,” Kerins says.
“The level of professionalism is so high. I remember looking at breeze-up horses many, many moons ago and there were some really good guys but the standard is really outstanding now. I saw horses a couple of weeks ago, in the middle of a cold, wet January day, and they looked fantastic. It’s an old cliche but Ireland is blessed with a huge amount of top horsemen and horsewomen.
“It’s exactly the same with the point-to-point operators. There are many talented and gifted people working in that sector when it comes to producing horses. They buy stores, roll the dice, and sell six to 12 months later in an area where there seems to be great demand.
“I think all different types of horses are looking very strong in the market right now. It’s a crude analogy but they are all spokes in the wheel of an industry that is constantly turning. As an example, there is obviously demand at the top end of the point-to-point market but there is also a wealth of buyers at the middle and lower sections. It leads to demand for the stores and so on.”
So then, has there ever been a better time to be a seller?
“Not to be too negative, but looking at the National Hunt breeding stock sales in November and December, the clearance rates weren’t as high as they were in the past and the numbers offered were not as big as 2005, 2006 and 2007,” says Kerins.
“There are horses who don’t sell or meet market requirements, and it seemed only certain sires were in demand. This is the market and these factors, along with the Russia-Ukraine war and a hike in interest rates coupled with inflation, are completely out of our control as a sales company.
“However, I think if you’ve got what the market wants there’s never been a better time to be a seller.”
Sire power
Kerins has spent almost 30 years in the industry and believes the coming years will be fascinating to observe with a view to the National Hunt sires who could develop greater prominence in the sales ring.
A total of 26 different sires supplied the 28 winners at last year’s Cheltenham Festival, 12 individual stallions were responsible for the 15 Dublin Racing Festival winners in 2022, while 32 different sires were credited with winners from the 39 Punchestown Festival contests last spring.
These diverse returns at the top table of National Hunt racing do not always appear to be reflected when it comes to the highest purchase prices at prominent National Hunt sales for unraced young stock.
“From a National Hunt perspective at the breeding stock sales, trade is strong but somewhat polarised - it seems to be very much sire-driven,” says Kerins.
“There are proven sires out there but there is also another group of stallions who are popular but have yet to have a significant number of runners on the track. If they prove themselves as reasonably successful on the track, it will hopefully broaden the appeal as it is a little polarised at the moment. I think having variety in terms of sires is important. It wasn’t always as broad as it is now on the flat in terms of the foal sales.
“As an inspector for a sales company, you are dictated by what the market wants. You can see sires doing very well in terms of getting buckets of winners, and blacktype performers, but they don’t appeal at the sales. A lot of it is based on perception. A person’s perception is their reality but it’s not always based on fact.
“It’s difficult because the smaller person may come into the ring looking to buy a horse, but the owner may not want what they’ve bought if they’re by a sire who isn’t perceived to be fashionable. That’s where the challenge is. Someone needs to be brave but they can’t be naive and brave either because it all comes down to the bottom line for purchasers and sellers.
“Am I buying a horse when I genuinely think I can make money? I can pick up a nice horse but if he’s by a sire who people may not be entirely convinced by then it can be more difficult to sell again in future.”
Derby Sale quality
Tattersalls Ireland’s 2023 sales season got underway this week with the February National Hunt Sale. The two major auctions in the first half of the year at Fairyhouse are the Goresbridge Breeze-Up at Derby Sale, with two relatively new store sales either side in May and July.
Last year’s Derby Sale saw a best-ever turnover of €18.5 million across the two days, as well as a record average and median of €57,903 and €50,000 respectively.
“Some of the team have started Derby Sale inspections already so it’s exciting to get out on the ground,” says Kerins, who auctioned off Grand National winner Minella Times as a foal and Irish 2000 Guineas hero Phoenix Of Spain as a yearling.
“You see them as three-year-olds in January, February or March, watch them come here for the sale and then follow their careers with interest.”
On the calibre of young stock in Ireland at present, Kerins adds: “I think the quality has never been as high. There have always been good horsepeople in Ireland but the standard of professionalism is just so strong. They’re very commercially-minded and probably 90% of them understand the market inside-out. They know what is wanted, so go on to buy and produce accordingly. It’s very high.
“We’re lucky at the moment too in Ireland that, from a National Hunt perspective, we have a lot of people buying horses to keep them here. It certainly wasn’t always that way. The late 1980s and early 1990s aren’t all that long ago, but how the tide has turned. We have so many good trainers here as well who fly the flag for us internationally.”
A distinct enthusiasm is evident in Kerins’ voice when the conversation turns to his ambition for Tattersalls’ Irish wing. He is passionate when it comes to competing in an extremely competitive sales environment.
“It’s a fascinating business that keeps you grounded and I enjoy it,” he says. “I’ve been here two years and hopefully I have another few more in this job. You learn about yourself and people.
“Here in Tattersalls Ireland we’ve had some turnover in terms of staff over the last few years. There were some huge additions to the company who have gone on to pastures new - and we wish them well - but we’re rebuilding the team again. We’ve taken on some really good people and are happy that we have a lot of talented people working with us. Hopefully there will be more to come as well.
“We try hard. We’ve put a lot of money into the facilities and we’ll continue to invest in our people and infrastructure. Each of us here do our absolute best and try extremely hard, whether we’re selling a horse or welcoming buyers.
“We roll out the red carpet as best we can and will continue to do so. Hopefully it’s onwards and upwards.”
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