As the seats begin to fill in the SC Sales Pavilion prior to the Canadian Yearling Sale, it becomes clear that buyers are here to buy.
Today they’re purchasing yearlings that were bred when the industry in Ontario had hit its lowest point. The number of mares back then dropped, and the resulting crop was small - worryingly small. Today, the reaction is one of resilience. In total, 144 yearlings entered the Canadian Yearling Sale ring in 2016 and combined, they grossed $2,972,200 – the highest number we’ve seen since 2011. While the average, at $20,640 per yearling stayed close to steady from last year, it was dramatically up 63.6% from 2014 and 103.2% from 2013.
In Alberta, at the annual Alberta Standardbred Horse Association Yearling Sale, the numbers were also very encouraging. The gross increased 5.8% over 2015 to $590,800 while the average went up 37.2% to $10,940 per yearling.
Across the country, more yearling sales are on the horizon, and optimism is evident.
That optimism is increasingly clear in the breeding numbers as well. In 2015, the number of matings to Canadian stallions increased by 13.6% over the year previous. In 2016, it once again jumped, this time by another 9.8%. In turn, the number of yearlings available at next year’s sales should be expected to rise, and then again the year after. On the breeding side, the industry is still shy of its previous numbers but the trend shows that confidence among breeders is coming back.
As for wagering, we’re seeing a similar picture. From 2014 to 2015, all sources betting on Canadian harness racing increased dramatically by 10.1%. So far this year, it’s up another 3.1% overall and 6.7% per race (through September 20, 2016).
Based on the current trend, the total bet on harness racing in Canada will hit a level this year that it hasn’t reached since 2008. And the increases are not just in Ontario. Last year, all sources betting on Canadian standardbred racing jumped in each of the top six racing jurisdictions in the country, by handle. Ontario, British Columbia, Alberta, Prince Edward Island, Quebec and Nova Scotia all saw gains. Greater distribution, cooperation among racetracks and jurisdictions, and more aggressive promotion to horseplayers all likely play a role in the growth. Many important partners in the industry have stepped up and should be applauded for their hard work. There are lessons to learn on what is working and what is not, but cooperation remains vital.
During years of decline, trends were worrisome. They represented a loss of momentum and seemed to feed on themselves, discouraging investment in the future. We must treat the current trends seriously as well, as they represent the exact opposite. Yearling buyers and new bettors signify that money is coming into the industry and these are indicators that should not be taken lightly. We are at a critical juncture when it comes to how we invest for tomorrow.
A trend has the power to lift spirits and attract new investment - but on its own, it’s just a line on a spreadsheet. The last couple of decades have taught this industry a lot about the results of action and the results of inaction. Time for all segments of racing to strike while the iron is hot.
Darryl Kaplan
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