For the second consecutive year, the Consignors and Commercial Breeders' Association (CBA) hosted its Educational Symposium in Lexington, Kentucky, as a service to its members and any interested industry professionals.
“This is the second year in a row the committee has taken the ball and put this together,” said Denali Stud's Craig Bandoroff, who serves as CBA's president. “It takes a lot of time on their part. You may not hear from us a lot, but I use the analogy that we are like the fire station: when issues come up, you will be the first to know.”
The symposium first came about after CBA board member Pat Costello was inspired by a similar event sponsored annually by the Irish Thoroughbred Breeders' Association. The CBA hopes to make their equivalent an annual event as well.
Held at Keeneland's sales pavilion, about 20 guest speakers presented information on a variety of subjects ranging from taxes and accounting to veterinary concerns to racing on an international level.
“The CBA was originally just a thought being talked over, and it is pretty amazing to see how far it has come today,” moderator Bayne Welker told a crowd of several hundred people. “It is built on sweat equity, and a lot of people do a lot of work to keep it together.”
Opening Statements…
As he did in 2014, Kentucky State Senator Damon Thayer provided the opening remarks for the symposium. A longtime supporter of the horse industry, Thayer discussed how much has been achieved in Frankfort when it comes to the horse racing industry.
“Our industry has a little bit of a chip on our shoulder about things that happen in Frankfort and Washington, but we have had some big victories,” he said. “Sometimes you can rack up victories on bad bills that you kill.”
Thayer said his proudest accomplishment during his 12 years in politics pertains to the Kentucky Thoroughbred Breeders' Incentive Fund. Since becoming law, it has returned $123 million to Kentucky breeders, 80% of which has gone back in the pockets of Thoroughbred breeders.
However, Thayer took a firm stance on the race day medication issue, arguing that if horse racing does not regulate itself soon, the federal government will have no choice but to step in.
“My opinion is we should eliminate Lasix on raceday altogether,” he said. “This issue is killing us in the eyes of the public. It gives the New York Times and PETA an opening where there should be none. I am very reticent to throw myself behind federal regulation of the horse business, but if we can't figure this out on a state-by-state basis, the federal government is going to take it over. I think we will live to regret that if we aren't careful. ”
On the World Stage…
Racing is an international sport. As such, advances and changes in other racing jurisdictions and what the United States can learn from them were also covered.
Chauncey Morris, the executive director of the Kentucky Thoroughbred Association, spoke about the responsibilities and direction of the organization. He referenced the fact that Japan's Just A Way (Jpn) (Heart's Cry {Jpn}) was recently named the Longines World's Best Racehorse by the International Federation of Horse Racing Authorities and no North American runners were in the top three.
“The world has obviously changed,” said Morris. “The top of the heap was Japan then Europe then Australia. You can agree or disagree with how these are tabulated, but they do serve as a barometer.”
Morris went on to discuss how some markets, specifically Japan and Australia, have made an effort to communicate about the success of their horses. Furthermore, in some countries, owners work together to make a concentrated assault on other jurisdictions' major races. Japan's target on France's G1 Qatar Prix de l'Arc de Triomphe was one example.
He also noted the fact that the Kentucky foal crop is on the rise again, calling it a “flight to excellence” after other states have lost funding for the racing industry. He commented then on the importance of marketing Kentucky-bred horses to other countries.
In an afternoon session, Dr. Scott Stanley presented an explanation of equine hair as a new matrix for anti-doping control of anabolic steroids. This is a key component of the British Horseracing Authority's new zero tolerance policy, which is being put in place Mar. 1 after several high-profile cases in recent years.
Under the new policy, a horse cannot be administered an anabolic steroid at any point in its life. A horse that has been given an anabolic steroid cannot train in England for 12 months and is ineligible to run for 14 months. This will likely have an impact on horses purchased in North America with an intention to race overseas because imports will automatically be tested upon arrival in England. Horses imported from Ireland, France and Germany are exempt from that due to mirror policies.
“I've spoken to sale companies to try to get ahead of this,” said Stanley. “The vast majority of horses would be tested before going overseas to give the buyer or seller confidence, but we have yet to determine the most appropriate way to go.”
The longevity of hair samples compared to urine and blood samples has become important due to these long-term regulations.
“The BHA responded with a very strong statement saying they will not have anabolic steroids in British horse racing,” said Stanley. “Drugs remain in the hair almost permanently. The blood supply is what delivers the drug into the hair at the follicle as it is growing. We can also determine if it is multiple or singular administration.”
Money, Money, Money…
Several panels featured ways consignors could protect their money or make more on their investments.
On the business side of things, Jen Shah of Dean Dorton Allen Ford, PLLC took the audience through the ins and outs of taxes and accounting. With changes in health care laws, many businesses are dealing with a different set of taxes from the past. She also covered how to properly classify workers and the differences between an employee and an independent contractor.
Del Pearson of M&J Insurance discussed coverage available to farms, while Michael Meuser of Miller, Griffin & Marks PSC covered legal issues pertinent to the breeding industry. Meuser went through the recent changes to conditions of sale at Keeneland and Fasig-Tipton and the legalities. This led to a lively question and answer session from the audience, as liability is a complicated issue within horse sales.
Following that, an auctioneer panel featuring Keeneland's Ryan Mahan and Kurt Becker and Fasig-Tipton's Tom Biederman and Reed Ringler took to the stage. They discussed ways to make a sale better and more satisfactory even though it takes place in a small amount of time.
“We understand you deserve a lot for our 5%,” said Mahan. “Auctioneers are a bit like orchestra conductors. It is my opinion that it is all about relationships. Relationships can be very powerful when commerce takes place in 90 seconds.”
Biederman then discussed reserves and the ways consignors unknowingly hurt their own cause. The two main mistakes he pinpointed were trying to do the auctioneer's job and telling buyers a horse's exact reserve.
“We get paid to make it happen the right way,” Biederman said. “Unfortunately, some sellers would like to help us drive. It all goes back to you have to remember that we are working for you. This is not a dual agency situation. We are working for the seller every time.”
He recommended that if buyers won't stop pressuring a consignor for a reserve to offer a range, but to never give the actual amount.
Five veterinarian experts also went front and center to discuss the issue of sesamoiditis, which is the inflammation of the sesamoid bone. Opinions on treatment varied, much like the severity of the issue can vary widely from case to case. The fact that it is something to be aware of and overzealous sales preparation can be a factor was noted, though.
“The significance has less to do with the actual bone and more to do with the suspensory ligament that attaches to that bone,” said Dr. Jeffrey Berk. “What has happened to the soft tissue?”
Leave Them Laughing…
The final panel of the day was entitled “Storytellers” and featured Ted Bassett, Dr. John Chandler, Terence Collier, and John Williams.
The four respected gentlemen spent their hour swapping tales, both happy and sad, but always entertaining, to the delight of the crowd.
Perhaps Bassett summed it up best, saying: “The bad times do exist, but they are overwhelmed by all the good moments.”
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