breeding rights, dynaformer, economics of breeding, seasons and shares, spendthrift farm, stallion ownership, syndication, temple city
Temple City (2005 b by Dynaformer x Curriculum, by Danzig)
A handsome and sizable individual by the noted Roberto stallion Dynaformer, Temple City has proven one of the most heavily patronized stallions in the Bluegrass this year.
In addition to being out of a half-sister to the fine stallion Malibu Moon, Temple City also has benefited from the offering of lifetime breeding rights in the horse for those who buy a season. (For more information on the program at Spendthrift, see this post.)
The program proved so popular for Temple City, in fact, that the decision makers at Spendthrift increased the number of breeding rights offered to breeders because of the demand.
It will be most interesting to see how programs such as this work out in the coming years, as farms that already own a stallion prospect (as was the case with Temple City) have much greater leeway in offering incentives to breeders and making special offerings for their participation in stallions.
Given the finances of the industry as a whole, some pattern of business will emerge as the preferred way of doing business, and at present, the tendency among many breeders is to shy away from stallions who are wholly owned by farms.
Whether the economic interests of all parties will intersect in old-style syndications with limits on total seasons available for use, lifetime breeding rights with no recurring expenses, or another format will be crucial to the long-term welfare of breeders.
And one thing is certain. The present system of virtually unlimited use, oversupply at every level, and uneconomic pricing is killing us all.