Spendthrift Farm Brings Breed Secure to Australia
Spendthrift Farm is bringing its renowned “Breed Secure” program to Spendthrift Australia for the upcoming 2016 breeding season.
“We are pleased to introduce Breed Secure to the Australian breeders,” said Spendthrift’s B. Wayne Hughes. “It is a program that was designed solely to equal the playing field between the stallion owner and the breeder, and it is far superior to a standard foal share.
“The focus of the program is on relieving breeders of risk and cash-flow issues, all while still allowing them to realize the upside we all hope for with a successful horse. I have long believed that if one of our stallions does not produce a profitable foal in a particular mating, then we should bear our fair share of the responsibility for it – not just the mare owner,” he explained. “With Breed Secure, we don’t get a nickel of the stud fee for an unprofitable sale horse. On the flipside, we can only get back the amount of the stud fee on a successful sale horse, which gives breeders all of the upside needed to maintain as many financially healthy breeding operations as we can possibly impact in the Australian market. It is the fairest and most breeder-conscious deal in the industry. We are all in this business together, and programs like this give us all a chance to be successful – not just the stallion owner.”
Breed Secure becomes the latest breeder-friendly program to be offered by Spendthrift Australia, the Victorian-based stud farm which debuted a year ago along with its “Share The Upside” program. Both programs have been revolutionary and very popular at Spendthrift’s USA operation.
Breed Secure offers breeders the ability to breed a mare to a Spendthrift Australia stallion with no fees due until the sale of the resulting horse at public auction. The key difference between Breed Secure and a standard foal share deal is that Breed Secure only allows for Spendthrift Australia to get back the maximum value of the stud fee. Any sales proceeds over the amount of the stud fee are realized as pure profit to the breeder, allowing Breed Secure to offer breeders limitless upside on a good sale result.
Breed Secure also offers other attractive features designed with the breeder in mind. The breeder will choose whether to sell the resulting offspring as a weanling or as a yearling at public auction. After the sale is made, the first sale proceeds automatically go to the breeder up to a certain threshold. Breeders will earn the first $6,000 for a weanling sale, or first $12,000 for a yearling sale, before Spendthrift is eligible to recoup any of the stud fee. Breed Secure also protects breeders by offering forgiveness of any shortcomings of a sale, which is designed to limit the amount of risk and loss for the breeder.
“Breed Secure has been very well-received by breeders in the USA, and it is something that shows the generosity of Mr. Hughes and how driven he is to make sure the breeders are looked after, as their success is as important to him as his own,” said Garry Cuddy, general manager at Spendthrift Australia. “The introduction of Breed Secure to Australia is a massive thing for our industry, and there is nothing like it anywhere. We can’t wait to have the opportunity to tell breeders about it, and we believe it will be extremely popular, especially with the thriving sales market. It’s a can’t-miss deal for any breeder.”
The current stallion roster at Spendthrift Australia features Grade/Group 1 winners Hampton Court, Jimmy Creed, and Warrior’s Reward, as well as G1-placed juvenile Can the Man.
For more information about the Breed Secure program, or about any of Spendthrift Australia’s stallions or programs, please contact Garry Cuddy at +61 410 451 595 or Josh Rix at +61 499 880 855, or visit Spendthrift.com.au.