After shelling out for virtually every stallion prospect in America last season, Darley has made another huge purchase...
Fasig-Tipton sale to Dubai company raises concerns
Nancy Sexton and Rachel Pagones
.
THERE was uncertainty among some of the key players in the US commercial bloodstock industry on Friday about how to interpret the acquisition on Thursday of Fasig-Tipton, the oldest North American thoroughbred sales company, by Dubai-based Synergy Investments Limited.
The company's owner, Abdullah Al Habbai, described by Fasig-Tipton as a close associate of Sheikh Mohammed, pledged on Thursday to invest significantly in the auction house, which has a full-time staff of 40 and sold $240 million worth of bloodstock last year.
However, there was some concern within Fasig-Tipton as to the reaction of Coolmore, whose rivalry with Sheikh Mohammed's Darley operation is no secret.
“It has crossed my mind that this might not be a move to suit Coolmore,” admitted Boyd Browning, executive vice-president of Fasig-Tipton. “But we have a very strong relationship with them and we will bend over backwards to accommodate them. Who knows, maybe we will generate a stronger relationship.”
The sale could allow the company to compete more aggressively with Keeneland,
the country's largest sales company. Keeneland officials remained circumspect on the prospect.
“The purchase opens a new chapter for an historic, well-established company in the thoroughbred auction business,” said Nick Nicholson, chief executive of Keeneland.
Browning said he was looking forward to a healthy level of competition. “We've been competitive with Keeneland for the past 75 years, and we intend to remain competitive with them, as I'm sure Keeneland does with us.”
Craig Bandoroff, whose Denali Stud has sold such stars as David Junior, Sophisticat and Stravinsky at Kentucky auctions, said: “Landscapes always change and, hopefully, the goal will be to do things to help breeders and help the product.
“I think he has shown that when he walks into a stallion business, he makes it more consumer-friendly.”
It was business as usual on Friday at Fasig-Tipton's Kentucky grounds as officials began mapping out a new game plan.
“Mr Al Habbai will not be working with us on a day-to-day basis and is looking to us to provide leadership. It gives us a free rein but also pressure,” said Browning. “We are very enthusiastic about what the deal will enable us to do.
We have yet to make a structured plan, but our long-term goal is to push the industry forward by attracting new participants and making their experience as enjoyable as possible.”
The deal marks the first foray into bloodstock by Al Habbai, whom Sheikh Mohammed recently appointed deputy chairman of Deira Investment, whose primary focus is on developing real estate and a $5 billion tourism project in Dubai in partnership with Sungwon, a Korean construction developer.
Fasig-Tipton sale to Dubai company raises concerns
Nancy Sexton and Rachel Pagones
.
THERE was uncertainty among some of the key players in the US commercial bloodstock industry on Friday about how to interpret the acquisition on Thursday of Fasig-Tipton, the oldest North American thoroughbred sales company, by Dubai-based Synergy Investments Limited.
The company's owner, Abdullah Al Habbai, described by Fasig-Tipton as a close associate of Sheikh Mohammed, pledged on Thursday to invest significantly in the auction house, which has a full-time staff of 40 and sold $240 million worth of bloodstock last year.
However, there was some concern within Fasig-Tipton as to the reaction of Coolmore, whose rivalry with Sheikh Mohammed's Darley operation is no secret.
“It has crossed my mind that this might not be a move to suit Coolmore,” admitted Boyd Browning, executive vice-president of Fasig-Tipton. “But we have a very strong relationship with them and we will bend over backwards to accommodate them. Who knows, maybe we will generate a stronger relationship.”
The sale could allow the company to compete more aggressively with Keeneland,
the country's largest sales company. Keeneland officials remained circumspect on the prospect.
“The purchase opens a new chapter for an historic, well-established company in the thoroughbred auction business,” said Nick Nicholson, chief executive of Keeneland.
Browning said he was looking forward to a healthy level of competition. “We've been competitive with Keeneland for the past 75 years, and we intend to remain competitive with them, as I'm sure Keeneland does with us.”
Craig Bandoroff, whose Denali Stud has sold such stars as David Junior, Sophisticat and Stravinsky at Kentucky auctions, said: “Landscapes always change and, hopefully, the goal will be to do things to help breeders and help the product.
“I think he has shown that when he walks into a stallion business, he makes it more consumer-friendly.”
It was business as usual on Friday at Fasig-Tipton's Kentucky grounds as officials began mapping out a new game plan.
“Mr Al Habbai will not be working with us on a day-to-day basis and is looking to us to provide leadership. It gives us a free rein but also pressure,” said Browning. “We are very enthusiastic about what the deal will enable us to do.
We have yet to make a structured plan, but our long-term goal is to push the industry forward by attracting new participants and making their experience as enjoyable as possible.”
The deal marks the first foray into bloodstock by Al Habbai, whom Sheikh Mohammed recently appointed deputy chairman of Deira Investment, whose primary focus is on developing real estate and a $5 billion tourism project in Dubai in partnership with Sungwon, a Korean construction developer.