Contracts

Derby2004 · Postby **Derby2004** » Tue Jan 04, 2011 8:39 pm

Are any of the major farms doing the payable out of proceeds contracts?

LB · Postby LB » Tue Jan 04, 2011 8:43 pm

Derby2004 · Postby **Derby2004** » Wed Jan 05, 2011 10:09 am

ok. which ones?

LB · Postby LB » Wed Jan 05, 2011 12:17 pm

I would think that all the farms would at least entertain the possibility, dependent upon which stallion you're talking about, how good your mare is (and how much they want her for their horse) and whether or not you're offering multiple mares (for that stallion or others.)

For a horse whose book is close to being closed you're probably out of luck. But for one who's struggling to get the numbers, I'd expect that most farms might be willing to deal.

Derby2004 · Postby **Derby2004** » Thu Jan 13, 2011 8:08 pm

i cannot find a farm offering the payable out of proceeds contracts. Little help please if you know of any,

LB · Postby LB » Fri Jan 14, 2011 7:40 am

If you are simply calling farms and asking if they will give you a pay-from-proceeds contract, no one is going to say yes. Why would they? They don't know you, they don't know your mares, and you're asking them to give you an unsecured loan of approximately two years' duration.

However if you call and say, "I have 5 mares that I want to breed to your stallions and this is who they are and this is why they'd be a great match with your horses and by the way, all those stud fees are a little tough for me right now so could we possibly do 2 of them on a pay-from-proceeds basis and the mares that I'm interested in doing that with have offspring that have sold very well in the past and now they're on the track and I'm expecting updates to the page soon so this isn't much of a gamble for you and think of the nice foals we'll get..."

Under those circumstances, chances are the farm will say yes--unless you're talking about one of their most popular stallions.

fastappy · Postby **fastappy** » Fri Jan 14, 2011 11:26 pm

Is this the type of contract you are speaking of (proceeds for sales?) http://www.spendthriftfarm.com/breed-for-free.html

Sounds like a good deal!

Hold Your Peace · Postby **Hold Your Peace** » Sat Jan 15, 2011 6:08 am

fastappy wrote:Is this the type of contract you are speaking of (proceeds for sales?) http://www.spendthriftfarm.com/breed-for-free.html

Sounds like a good deal!

At least until you try to sell a foal by one of these stallions.

Derby2004 · Postby **Derby2004** » Sat Jan 15, 2011 7:30 am

I saw that but im not too crazy about either stallion. There babies are already short yearlings and by the time my foals are born and ready for the yearling sales, the market will know of they are a wash at stud. At least with a first year you have a better chance at hitting. Too bad they arent offering that program for Warriors Reward.

LB · Postby LB » Sat Jan 15, 2011 10:08 am

Derby2004 wrote:Too bad they arent offering that program for Warriors Reward.

Warrior's Reward's book is closed.

Derby2004 · Postby **Derby2004** » Sat Jan 15, 2011 10:19 am

found that out when i talked to ken.

fastappy · Postby **fastappy** » Thu Jan 20, 2011 1:45 pm

Hold Your Peace wrote:
fastappy wrote:Is this the type of contract you are speaking of (proceeds for sales?) http://www.spendthriftfarm.com/breed-for-free.html

Sounds like a good deal!

At least until you try to sell a foal by one of these stallions.

I just got off the phone today (20 Jan 11) with Ken at Spendthrift and he explained the contract in detail. The gist of the deal is if you elect for the risk free breeding, you have to sell the foal as a weanling. If the foal brings a price, you get the 1st $3,000, in excess of that goes to Spendthrift up to the stallion fee, of which any excess goes to you the breeder.

If the foal sells for $1,500 for example, the stallion fee would be waived. How is that a bad deal? If you don't make money, they don't get their fee and you have no obligations or additional loss other than the $300 deposit.

If you elect to get a 50% discount on the fee, your mare simply has to meet the listed criteria which protects the other breeders as well.

Yes, you are breeding on the bubble but you're not putting out alot of funds either. Here is what Tom Clark says about Notional; "Buy!"

"Foals that I have seen are top class including a homebred filly that I am excited about. Good physical horse, solid speed; interesting sire line. Like the horse and bred several clients mares to him again this year. Just have a hunch about this precocious son of In Excess which ran a Beyer 105 in his maiden win."

Bohemia · Postby **Bohemia** » Thu Jan 20, 2011 4:19 pm

Tom Clark also likes Smarty, so I wouldn't put too much stock in his opinion.

fastappy · Postby **fastappy** » Thu Jan 20, 2011 6:22 pm

Bohemia wrote:Tom Clark also likes Smarty, so I wouldn't put too much stock in his opinion.

Apparently alot of people liked Smarty when he was 100K. Have you ever liked a horse that bombed? Don't anser that question, because you have a right not to incriminate yourself (Joking)!

All of us are guessing in regard to an unproven sire(s) based on part of our likes and biases. How many people thought that Candy Ride would be so successful. Why did Dynaformer, Saint Ballado, & Malibu Moon start out for $3,500?

How about the other horses that he comments on do you agree with any of his selections?

Bohemia · Postby **Bohemia** » Thu Jan 20, 2011 7:20 pm

I think he's pretty much on the mark with all his assessments except for Smarty (I made my comment somewhat tongue-in-cheeck). He wrote: "Off to PA; a move that I cannot understand at a point where they are beginning to run." Smarty most definitely should have been moved, especially since most of his top performers are in the allowance and non-graded/Gr. 3 stakes class.

But overall, Clark's opinions are pretty accurate.