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Racing Victoria steps in as horse sale industry comes under attack
West Australian Racing
TheDiva
13,248 posts
AS leading auction houses yesterday defended the horse sale industry amid accusations of rorts, Racing Victoria announced it would investigate whether the industry was in need of reform.
While insisting Inglis and Magic Millions acted with integrity, the Australian Racing Board has revealed it and other industry bodies had received numerous complaints about alleged dummy bidding and "rogue'' bloodstock agents.
Inglis chief executive Mark Webster insisted talk of widespread dummy bidding was "speculation'' and said his company was unaware of pre-sale deals and condemned such activity.
ARB chief executive Peter McGauran said breeders had fought hard against a new ARB rule that outlawed the use of anabolic steroids on all horses, from yearlings to racehorses.
McGauran said a "new era'' of transparency and integrity had put aspects of thoroughbred breeding and auctions on notice.
Leading breeder and Racing Victoria board member David Moodie said on Sunday occasional dodgy practices were a blight on the industry, mainly at yearling sales. He insisted most acted properly.
Moodie said pre-sale deals and dummy bidders were not widespread but were common enough to affect overall confidence.
Moodie also criticised sales companies for offering buyers extended periods of credit. Inglis was left with more than $5 million in debt after the collapse of BC3.
Racing Victoria chief executive Bernard Saundry said RVL would contact the Australian Securities and Investments Commission regarding codes of conduct in the horse sale industry.
"We don't know what the answers are, but we are keen to look into it over the next few months, to see if customers were properly protected and, if not, what can be done,'' Saundry said.
The heads of Australia's two major sales companies, Inglis and Magic Millions, said rorts were not widespread.
Vin Cox, head of Magic Millions, said market forces usually ensured the integrity of any sale.
Cox and Webster said providing extended periods of credit to buyers was crucial to the buying and subsequent syndication of horses.
"If we stopped giving credit, the whole system grinds to a halt,'' Webster said.
"We'd love for everyone to pay on the day, but it just doesn't work that way. Trainers will buy a horse like that and go back to their clients and syndicate it out.
"If anyone can come up with a better system, please let me know. There isn't one.''
Webster said beleaguered BC3 had been given strict 30-days terms to settle the $5 million account for Black Caviar's half brother, "Jimmy".
"But they couldn't meet their obligation, simple as that,'' Webster said.
Webster conceded "there could be a need for reform in some areas'' but said 99.9 per cent of buyers and sellers "meet their obligations''.
Webster said Inglis provided free and accurate advice to consumers about the "true'' value of horses to be sold at auction.
Henty Plumptre, head of Darley's Australian operation, said rorts were "absolutely rife'' at horse sales in Britain and the US in the 1970s and 1980s but modern sales could be trusted.
While insisting Inglis and Magic Millions acted with integrity, the Australian Racing Board has revealed it and other industry bodies had received numerous complaints about alleged dummy bidding and "rogue'' bloodstock agents.
Inglis chief executive Mark Webster insisted talk of widespread dummy bidding was "speculation'' and said his company was unaware of pre-sale deals and condemned such activity.
ARB chief executive Peter McGauran said breeders had fought hard against a new ARB rule that outlawed the use of anabolic steroids on all horses, from yearlings to racehorses.
McGauran said a "new era'' of transparency and integrity had put aspects of thoroughbred breeding and auctions on notice.
Leading breeder and Racing Victoria board member David Moodie said on Sunday occasional dodgy practices were a blight on the industry, mainly at yearling sales. He insisted most acted properly.
Moodie said pre-sale deals and dummy bidders were not widespread but were common enough to affect overall confidence.
Moodie also criticised sales companies for offering buyers extended periods of credit. Inglis was left with more than $5 million in debt after the collapse of BC3.
Racing Victoria chief executive Bernard Saundry said RVL would contact the Australian Securities and Investments Commission regarding codes of conduct in the horse sale industry.
"We don't know what the answers are, but we are keen to look into it over the next few months, to see if customers were properly protected and, if not, what can be done,'' Saundry said.
The heads of Australia's two major sales companies, Inglis and Magic Millions, said rorts were not widespread.
Vin Cox, head of Magic Millions, said market forces usually ensured the integrity of any sale.
Cox and Webster said providing extended periods of credit to buyers was crucial to the buying and subsequent syndication of horses.
"If we stopped giving credit, the whole system grinds to a halt,'' Webster said.
"We'd love for everyone to pay on the day, but it just doesn't work that way. Trainers will buy a horse like that and go back to their clients and syndicate it out.
"If anyone can come up with a better system, please let me know. There isn't one.''
Webster said beleaguered BC3 had been given strict 30-days terms to settle the $5 million account for Black Caviar's half brother, "Jimmy".
"But they couldn't meet their obligation, simple as that,'' Webster said.
Webster conceded "there could be a need for reform in some areas'' but said 99.9 per cent of buyers and sellers "meet their obligations''.
Webster said Inglis provided free and accurate advice to consumers about the "true'' value of horses to be sold at auction.
Henty Plumptre, head of Darley's Australian operation, said rorts were "absolutely rife'' at horse sales in Britain and the US in the 1970s and 1980s but modern sales could be trusted.
story Herald Sun.
Comments
LoL. Integrity.
'Passed in at $79,500 on reserve of $80,000'
TheFunkster, PieMan likes this post.
Fortunately some very good people involved as well
Faarrqq we have side bets - to see how far they are trying to push it up (:|
RIO, TheFunkster, PieMan likes this post.
thefalcon likes this post.
Thoroly_Bread likes this post.
cheers
PieMan likes this post.
Psd $14,000 Res $15,000
Psd $145,000 Res $150,000
Psd $14,000 Res $15,000
Psd $21,000 Res $22,000
Psd $195,000 Res $200,000
bloody hell, certainly makes you wonder what is going on...
it would cost them the difference just to keep them for another sale day.
i smell a dirty big rat....
:-wDarkhorse likes this post.
Lot 47 passed in for $145,000 res $150,000 I thought it was lacking scope and slightly narrow chested. Again extremely well bred yearling and seeing how both examples that were quoted have come from the same vendor, at least in my opinion they are getting some very good breeding advice. I again didn't have the x-rays checked as I didn't intend to bid on this horse. Has been named Fat Mouse.
As far as the other yearlings quoted, I don't think they were asking a lot, as all were under $25,000 and most of them would have cost most of that just to get them to the sales ring.
If either of the first two yearlings developed into nice types that wouldn't be overly surprising, as their respective breeding's should bring results if the horses were sound.
Well this one uses two computers, I gave up on paper sometime ago. All I needed was a reference, but I did some guess work and have gone with the above 'notes'.
Psd $14,000 Res $15,000 - Lot 289
Psd $145,000 Res $150,000 - Lot 47
Psd $14,000 Res $15,000 - Lot 408
Psd $21,000 Res $22,000 - Lot 366
Psd $195,000 Res $200,000 - Lot 153
There are others - i.e
Psd $24,000 Res $25,000-Lot 271
Psd $59,000 Res $60,000-Lot 335
Psd $48,000 Res $50,000-Lot 35
These are only where the last bid is one short of the reserve - there are heaps more that are very close
To me it it begs the question -
How many are sold at one bid over the reserve? :-?
"Racing Victoria announced it would investigate whether the industry was in need of reform."
"While insisting Inglis and Magic Millions acted with integrity, the
Australian Racing Board has revealed it and other industry bodies had
received numerous complaints about alleged dummy bidding"
Lets just see the % that are sold at the reserve or just one bid over the reserve :-w
RIO likes this post.
RIO, paraletic likes this post.
Have a look at the passed in lots in the sales archive on MM website. It's there for all to see.
RIO, Legless, Darkhorse likes this post.
During the bidding for what would become Petrol Power, it started with about 12 genuine bidders, there was no need for dummy bids. My understanding was that the reserve was passed within the first 60 seconds and it took for the price to hit $200,000 before it was just me against who would turn out to be the under bidder. Whether they set their reserves too high is a commercial decision for them to make, but from what I know of studs that produce a reasonable amount of yearlings, they cannot retain and race them all.
What has been the experience in other localities around the World, is that Studs get known for keeping the good ones and selling the rest. This can be just perception, but those Studs that sell 100% of their offered stock and sometimes meet the market in pricing, get equally known for this practice, and when buyers or agents talk to them, it is done with a certain confidence that what you are being told is in fact the truth.
I have also found that the most genuine vendors I have have spoken to following my purchase of one of their yearlings, were only to happy to quietly tell me where they needed to be on price, and if it meet my expectations I told them as much.
Darkhorse likes this post.