CPYS Chief Operating Officer Adrian Todd
Few people in this game are ever willing to be quoted and to go on record when it comes to delivering constructive criticism. A great pity, but I can’t say I really blame them most of the time. Reminds me of the Law of Close Encounters-The probability of meeting someone you know increases dramatically when you are with someone you don’t want to be seen with.We have relationships to maintain and bills to pay, after all, but it would have been interesting to fuel some credible debate on the exclusivity label angle.
I spoke to a few of the smaller players after the first Sale held in J& B Met week and there was a tangible element of unhappiness with regards to the no nonsense attitude adopted in the credit assessment process and in the apparent very selective allocation of buying cards. The entire show had seemingly immersed itself in a velvet blanket of exclusivity and the smaller man, for so long the backbone of the game, was now being subjected to unheard of scrutiny and rigid criteria – even the longstanding good payers were being Fica’d, Rica’d and body searched.
While this could have been more a communication issue than a matter of pure principle, it would have been interesting to get Adrian Todd’s views on these perceptions during his interview on the Inside Racing show screened on Tellytrack this past Monday evening. We are used to the fact that the real issues in racing are sadly rarely touched on, although Todd did announce some interesting incentives for those considering bidding or ‘specing’ on Book 2..
The new and more professional business approach by CPYS is really not that surprising in the current economic climate and after the years of experience garnered from Bloodstock South Africa’s credit control department’s ridiculous telephone bills and ever increasing staff complement. We have all heard of the legends of the big buyers who haven’t settled their tabs from three years ago and yet who are still bidding on the expensive lots with not a seeming care in the world. Whether that is urban myth or not, one sympathises with BSA and the breeders who are damned if they do and really buggered if they don’t.
According to their mission statement, Cape Thoroughbred Sales (Pty) Ltd(CPYS), under whose auspices the Cape Premier Sale is conducted, is an independent, commercial, sales company, uniquely devised to be dedicated to the growth of the sport of horseracing and the thoroughbred breeding industry through the development of the bloodstock market and using its strengths to become innovative, visionary, and global.
The company philosophy states inter alia, that net profit will be distributed for the betterment of the sport of horse racing and the breeding industry. A reputable firm of attorneys holds the shares of the company and there is no personal ownership of the company. They will use the market to improve the economic health of the breeders.
They will arrange financing of payment to Vendors at 30 days after sale.They will hold innovative commercial sales auctions and will build a globally recognised brand.
Their longer term outlook is to centralise bloodstock auctions in the Western Cape. To this end, consideration will have to be given by the Directors to the building of a purpose built, functional Sales Complex in the right location. The ownership of this complex will secure the long term future of CTS and the economic health of the market.
Their Book 1 Sale held at the glitzy Cape Town International Convention Centre in the last week of January was an unqualified success despite the undercurrent of negativity and bleatings from the small guys. It grossed R107 385 000 at an average price of R402 181, with a highest knockdown of R2,8 million paid by Mike Bass for a Jet Master colt. History was made too with the youngster being the highest priced yearling ever sold at auction in the Western Cape.
Now with the Book 2 catalogue being sold at Kenilworth on Friday 2 March and Sunday 4 March, the ordinary man is being welcomed back into the fold with open arms. Will they be rushing back to bid, I wonder, on what will undoubtedly be the better value or poorer cousin of the two catalogues?
Racing is scheduled for Durbanville on Saturday 3 March, which has also been set down as a viewing day. A braai will be held at Durbanville on that Saturday evening from 7pm.
Todd explained the travel incentive and softer payment terms being dangled for this ‘truly South African Sale.’ Firstly the innovation of offering all trainers outside of the Western Cape a free return no strings attached air-ticket to attend the Sale is to be welcomed. This will hopefully have the effect of attracting the Kimberly trainers and smaller yards from KwaZulu-Natal and Gauteng.
According to the National Horseracing Authority, we have 179 registered racehorse trainers in South Africa with approximately 34 domiciled in the Western Cape. That leaves in the region of 145 trainers who may qualify for the gratis flight and they are encouraged to get in touch with CPYS by 21 February.
Todd then went on to mention that Breeders were once again guaranteed settlement in thirty days and that Buyers would be given up to 60 days to settle – with those paying in 21 days getting a 1% rebate on their purchase. For the mathematically challenged, that’s R300 cash back on a R30 000 buy. I did ask Adrian Todd to explain this extended credit aspect in more depth via email but he had not responded by time of going to press- although, in fairness, I only gave him two hours prior to my deadline.
Compass Finance Pty Ltd are seemingly the nominated external credit provider for the CPYS, and if you are going to be speculating, I would imagine that it would probably make more sense to have the credit approvals in place before flying to Cape Town for the Sale.
One hopes that the small guys will grab the opportunity of trying their luck in an interesting looking bumper catalogue. And the bargains may well be there for the grabbing.
For the more outdoor inclined and budget conscious , I can recommend the short-term accommodation option of the Caravan Park in Bellville, just five minutes from Durbanville Racecourse. Electricity and running hot water are optional extras. Times are tough.
Interested prospective bidders are invited to email [email protected]
