Innovative Stallion Fee Terms – Sporting Post: 2 May 2019
Allan Bloodlines have announced a newly structured payment system for services to ELUSIVE FORT, the Grade 1 sire and the only son of Fort Wood now standing.
Mare owners will be able to choose between a Live Foal fee of R20,000 + VAT (down from R30,000 for his recent Full Books) or R25,000 + VAT “Pay When You Sell”.
The successful AllanStallions Scales of Fees will apply to either option, enabling lower fees to be paid for multiples.
“We as stakeholders in our SA industry must make efforts to rebalance the equation for beleaguered breeders without whose products there will be too few horses for racing in South Africa” said David Allan. “Paying stallion fees 16-18 months before selling is increasingly difficult and a decline in the NYS median is what defines the market for the majority”.
He continued “One move we as stallion people can make is to bring benefit to breeders’ cash flows – hence Pay When You Sell – and take the cash flow hit in the syndicate’s and management’s earnings. We also reduce the fee level to something mutually workable in tricky times”.
Elusive Fort sires Grade 1 winners, other Stakes Winners, winners at sprinting, miling and middle distances as well as juveniles. He is one of many stallions suffering at the sales for lack of enough buyers having sold a Million Rand Yearling in 2018 then this year one as good or better for R400,000. “It’s a fact of life and we are in good stallion company,” said Allan.
“Yes, we await his next Grade 1 winner but the first of his three Full Books are only coming through as 2 year olds now, so we can expect a lot of action in 2019/20/21 from many more mares covered than up to now, and more good ones”.
Under the AllanStallions Scales of Fees, nobody paid full price for multiple mares and now the fees look extremely reasonable plus the Pay When You Sell option – whether sold as weanlings or yearlings at the breeder’s discretion – or a discount for Live Foal. See below for the Scales.
“I am very grateful to Syndicate Principal and shareholders for supporting this industry initiative which we shall also announce for other stallions in a different bracket” added Allan.