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Race Horses and Race Cars

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Ray Miller

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Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Bloodstock business off as much as 49% for the major fall sales like Keenland and others. As I must track the sale of all horses for my equine appraisal business. The Thoroughbred/Jockey Club/Blood Stock/Race Horse business high end horses that start in the $100,000 range for yearlings are off this fall by as much as 49%. Many consigners are pulling there horses and not running them through the sales because of fear the horse will only bring ½ as much as in the past and set a new low and lesser value for their horses that they have now or in the making. Those that are selling are selling for as much as ½ less then last year’s sales. Stud fee’s are starting to drop as will for the spring breeding, however there are a lot of weanlings, yearlings and two year olds that have the high stud fee’s plugged in to them now. Young horses with $50,000 to $100,000 and up stud fees selling for $25,000 and the breeders have a year of care invested in the as well. Expect to see many of the smaller stud farms, breeders; bloodstock agencies and trainers fall by the wayside in the next 12 months.

Shirley Temple and Mickey Rooney will be back to selling the stud farm/racing farm again if they can't win the big race. But who is going to buy it in times like these. 1940's for you pups out there also in black and white pictures.

All major sales and breeders reporting this across the board. Many are saying it will come back next year, but I really have my doubts. It takes four years to turn the market around, by the time you breed the mare, (1 year), raise the foal to racing (2 years), race (1 year) total of four years before you know what you got for new breeding stock or real investment.Investors in blood stock it appears have lost confidence in it. It appears they are suffering greater lost in other investments and do not have the money to put into the Horse Racing world.It appears that the entire horse racing and pleasure horse industry is on the verge of a major collapse. In the pleasure horse and back yard horse business the industry is at it lowest in 40 years in adjusted value, plus there is a four to six year over supply of horses on the market with no where to dispose of them. Because of the former popularity of the ranch horses, many ranches have now over bred and the working ranch horse is now in over supply as well.

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Reported as well by NASCAR yesterday on an NPR Interview, that NASCAR racers are in trouble and a number of large sponsors are pulling out and will not be in this market next racing season as well, which may also have an affect on NASCAR. NASCAR reported yesterday that as many as 700 people in top three tiers of the NASCAR racing program/industry will be laid off by the end of the month. This is not including the service industry that will also suffer.

Here is one of the many stories of what is happening in the race car industry.
http://www.nascar.com/2008/news/busi...rs/index.html?

There goes my race car appraisal business. Got one in my shop for my pastor who is a member of the “Faster Pastor Racing Group” anyone want to buy it? Also seeing many of the lower level regional and local racers not being able to find sponsors for this coming season.Understand tracks are seeing less people buying tickets.Guess this might mean smaller races and fewer races across the county?

What other sporting industries will start to see and feel the crunch over the next year??

Do you think player salaries will be affected for baseball and football and the other sports?

What about golf in the spring and the size of the purses, as well as sponsors?

What say you?
 
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Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I think in 2010, the major leagues are going to be facing a real drop. A lot of next year's seats are already set for but the corporate sponsors are going to have to pull in their horns, especially the financials taking bail out money.

Of course, cheap horses have been 'free' for some time. You can get all the old nags you could ever want. Cattle prices have to follow. After a bad hedge bet, Pilgrims Pride Chicken took a beating down to like 40¢ a share and likely to go belly up. Tyson is following down in sympathy. But chicken and pork usually are cheaper meats and beef is the one likely to get hit hard.

The best thing you can raise on a farm anymore is a windmill or cell tower.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I think in 2010, the major leagues are going to be facing a real drop. A lot of next year's seats are already set for but the corporate sponsors are going to have to pull in their horns, especially the financials taking bail out money.

Of course, cheap horses have been 'free' for some time. You can get all the old nags you could ever want. Cattle prices have to follow. After a bad hedge bet, Pilgrims Pride Chicken took a beating down to like 40¢ a share and likely to go belly up. Tyson is following down in sympathy. But chicken and pork usually are cheaper meats and beef is the one likely to get hit hard.

The best thing you can raise on a farm anymore is a windmill or cell tower.


Todays paper: "Gone with the Wind"

" Billionaire oilman T. Boone Pickens put his massive wind farm plans on hold in Texas." "A Maryland solar plant project has been scrapped." The nations's second-largest ethanol company is under bankruptyc protection." "Globally, venture capital and private equity investment was $5.8 billion in the second quarter. It tumbled 24% in the third quarter as the global economy hit the brakes, according to London-base New Energy Finance, a research firm." "Last month BP Solar scrapped plans for a $97 million expansion of its Fredrick, Md, plant citing intense global competition.

Cattle prices are droping like a rock in this area. People I know have hauled calves to market in the past two weeks the checks they are getting back are - dollars because they still owe for the trucking to .25cents and they hauled the calves themselves. Fat cattle are droping as well.

Something I notice today on the way back from church, lots of corn in the fields yet and it was starting to snow. One man looks as if he got over 1200 acres of corn still standing, just south of me.

I hate to say it but every day its not looking any better as far as making a living and cutting cost.
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
The only good outcome of this recession/depression is many goofball econuts will not have public funds to pay for nutty global warming sillyness...wow , I sound like a Right winged nut...you bet , and proud of it...gotta go , my hummer needs fuel and I'm out of smokes..
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
NASCAR cancelled all testing as of Jan 1. All tracks, all levels. Every operation has a road practice team, including drivers. They're all out of work as of Jan. 1. Workers who build motors, chassis, fabricators, all will be cut back as there's less need for the equipment. Less demand for the ultra-high octane fuel, affecting the refiner. Less air traffic, less transportation costs, all means less income in these areas.

They were talking to 20 crew chiefs in the Nationwide series (just below Cup) and 15 didn't know if they had jobs.

As to other industries. They're not going to be buying yachts. High-dollar car sales are going to be off big-time. Probable decline in collector car purchases as the typical buyer has been hammered. Barrett-Jackson is going to be interesting this year.

General economy - my son was at the regional mall on Friday night. Over 30% of the stores were empty, a lot of others were shuttered at 6 PM on a Friday night, and there was virtually no foot traffic. People are still eating out, but are cutting back the number of times.

Walmart and Target are puting high-end electronic retailers out of business, i.e. Circuit City. Best Buy is in big trouble. Then there's the malls in the New Jersey Meadowlands that are in very severe trouble. Once a shopping haven for the people of NY/NJ, no one's shopping due to the costs of living in the Northeast.

We have oil wells down here that are being shut in due to the marginal income level vs operating costs.

So, it may not be a technical depression, but its a real bad recession, the worst I've seen. Don't expect an upturn in hiring for a year.

You have a job, hang on. There's just not many options left out there.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Added to the mix is small private colleges are closing or cutting back. Bible Colleges are closing or cutting back. Leaving a lot of people out of work and students dead in the water or up the creek without a paddle.

Pillsbury Bible College announced complete closing in Mn. at the end of the semester. I have friends who have kids at the school and the are in a state of flux of where they are going to complete their four year program now.

Beloit College announced over the weekend they may be required to cut back 40% of the staff at Beloit, WI. Hearing of several other colleges planning cut backs as well here in Wisconsin, IA, Ill and Mn.

Jefferson County WI just cut out the Extension agent and tried to cut out the 4-H program. Many other counties are talking about doing the same. Jefferson County has had an extension agent for some 70 years.

Upside letters going out to help them liquidate supplies and equipment at auction.:huh:

Yet our governor is going to be asking for tax increase, sale tax, auto license plates, professional license, hunting license and etc, to try and keep things at the same level for the UW and state employees. Just where does government think the working person is going to get the funds to pay these tax increases. Yet they blast there jaws “No Tax Increase” on income or property, just how stupid to they think we are? Government has got to cut back as well, correct? Yet, some people voted them in for four years of uncontrolled spending and give-a-ways.m2:
 
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