Whirlaway wrote: Take a look at this link:
http://www.jockeyclub.com/factbook/StateFactBook/California.pdf Go to page 10 and compare registered foals, lifetime starts and average starts per starter for 1991 and 2007. There are MAJOR differences that cannot possibly be explained by the track, jockey, trainer, economy, medications or statistics.
Well, aside from the loss of 7% of the 2002 foal crop due to MRLS and three major recessions (1991-1992, 2000-2001, 2007-2007) in the 20 years from 1990-2010, which are economic events that would have a direct impact on whether or not people kept horses in training or bred them.......
The 1986 Tax Reform Act affected the industry in three fundamental ways: I) The Passive Activity Loss -- Prior to this Act, the thoroughbred industry benefitted from capital infusions by people who needed to shelter large sums of money, and these investments in the industry were tax-exempt. The Act put an end to these tax benefits. Newberry argues that there is no change in the Internal Revenue Code which has had such a profound impact on the thoroughbred industry as the passive loss provision. 2) The income tax from horses classified as capital assets (mainly the broodmares and stallions) rose from 20 percent to 28 percent, and 3) the Act lowered the depreciation rate for the industry.
That happened in 1986. (Source:
http://ageconsearch.umn.edu/bitstream/1 ... 010165.pdf ) By changing the rules so that people couldn't write off losses in breeding/racing on their taxes, by making breeding more expensive, and by changing the amount of money owners could write off on their broodstock per year, this event made it directly more expensive to own and breed and race horses.
The JC stats on hand (
http://www.jockeyclub.com/factbook.asp?section=12 for 1988-2009,
http://home.jockeyclub.com/factbook/fac ... fc-87.html for 1987,
http://home.jockeyclub.com/factbook/fac ... fc-86.html for 1986) show no significant difference between 1986 and 1987, an immediate decline in foal crop between 1987 (bred in 1986) and 1988 (bred 1987), and large declines in foal crop every year until 1996. This was accompanied by a nine-year decline in the number of aggregate starters (that's while the pre-rule-change horses worked their way out of the system) and a steady fall in the number of aggregate races. Average purses increased over this time, which can partially be explained by the rise of statebred programs fueled by slot money and partially explained by the huge rise in top-end stakes purses. (1 purse dollar out of every 50 awarded in North America in 2009 was handed out on Breeder's Cup Weekend.)
Here is an article written by a tax professional in 1993 that attempts to explain how the change in the tax code will affect both large breeders, wealthy folks who might want to use the game as a profit/tax sink, and small hobby breeders who run for fun:
http://www.allbusiness.com/professional ... 278-1.html It's worth mentioning that the change in the tax law had demonstrable effects on other aspects of the horse industry:
http://findarticles.com/p/articles/mi_m ... _20417683/Horse slaughter hit its peak in the late 1980s, when changes in the federal tax code no longer allowed sheltered investments in thoroughbred breeding operations. Marc Paulbus, director of equine protection for the Humane Society of the U.S. (HSUS), says that "billions of dollars" were invested by speculators and, when the tax laws changed, the value of high-line animals - everything from racing Arabians to Tennessee Walking Horses - plunged overnight. "Horses with a paper value of $100,000 were sent to slaughter," Paulhus says. The horse population shot up from 5.5 million to eight million between 1983 and 1986, but just as many horses - 2.5 million - were slaughtered between 1986 and 1995. Paulhus says that overbreeding continues, and that racing breeds, most of them relatively young, still make up the greatest percentage of horses slaughtered.
(emphasis mine)
The relatively-young racing bred horses were the ones who were no longer economical to race.
So...
a single economic event in 1986 caused a persistent 10-year decline in the number of mares bred, number of horses who started, and number of horses who continued to race, and increased the number of horses retired from racing (to kill or otherwise) at a young age.Since the original post addressed field size and number of starters, here is another table from the JC:
http://www.jockeyclub.com/factbook.asp?section=10The number of starters in 1990 was three times the number of starters in 1960, but look at what happened to the number of races. Compared to the number of starters, there were more races (1.26/runner) in 1960 than in 1990 (0.89/runner), meaning fewer opportunities to run. If you look at the chart and also at the graph, you'll see that the number of starts per year is pretty flat until 1973 or so, and then really drops off around 1980 (which is the 1-to-1 point of races/runner). At the same time, the number of races run has fallen every year since 1990 (which, if you recall, is when horses conceived right after the tax law changed, were working their way through the system), until now when the ratio of races to starters is 0.75.
If there are fewer races, there are fewer opportunities for horses to run. If there are fewer opportunities for horses to run, then by necessity they will race less often, because fields have fixed sizes. That was Sysonby's point about the perpetually oversubscribed Maiden $8000 at Golden Gate--that's the level at which those horses need to run, and there are not enough races for that level of runner.
To another point you made, taken out of order:
For an example, the Size of Field and Starts Per Horse data includes horses in Canada. If you exclude the horses in Canada, the field sizes are smaller with fewer starts. In the post by DDT, he includes sires in Europe! Exclude the sires in Europe and all of his numbers change.
You are correct in pointing that out. And in the context of the discussion above of the US tax law change, excluding both the Euros and the Canadians from the decline in aggregate starters, starts, and foal crop makes absolute sense. It is also a
profound explanation of why horses abroad with the same 3rd-generation ancestors (and in many cases, the same parents!) as US-bred horses run more often than US-owned horses--the economics of racing in those countries is very different.
On a final note, your insinuation that I was using statistical analysis to be intellectually dishonest with you was exceptionally uncalled for, especially since the whole point of that exercise was to show why average starts was a bad metric and to suggest one that would be better for both your argument and mine.
Good luck on BC day and may your bets pay off well.
NB: edited to fix a small typo.