Puzzled

One part of the puzzle that I do not completely understand is the business models of the stud farms. Obviously they buy stallions, and try to make money attracting mares to breed with these stallions. However, the farms are also buyers and sellers of horses at the sales, and often race horses under their own name. This is where everything starts to get a little cloudy, and the potential for “conflicts of interest” appears.

Then beyond the 20 major stud farms, there are another group of “farms” where various mare are kept. This second group of farms are both buyers and sellers. Mixed into these different farms, are consigners and bloodstock agents, that often seem to be working for both buyers and sellers at the same time.

Just as I was beginning this journey, I heard an interview with Graham Motion on the Steve Byk podcast. Byk and Motion were discussing the indictment of Servis and Navarro. Motion made an interesting comment, he said:

“I am surprised that law enforcement started with trainers, I would have started by looking at the sales”

Motion did not elaborate, and Byk did not push him any further. I am not sure if Motion was talking specifically about the issue of using drugs to prepare horses for the sales, or if he was making a more general comment about the integrity of the sales.

This is a very complex business. The more I learn, the more questions that I have.