Bob Hutt, Owner and President of Uptowncharlybrown Stud LLC, Inc.
For your continuing education I have some very good news At Keeneland the September yearling sales are establishing all types of records as prices are going thru the roof. The supply and demand economics have taken hold as everyone is desperately trying to buy horses. The economic collapse of 2008 resulted in nearly a 50% decrease in horses being foaled. We jumped into the breeding game when everyone was abandoning ship. This should now reward all our investors for years to come. There’s more good news that I wish to share with everyone; especially the Kimberley Diamond Broodmare & Wait For It partnerships.
Previously about a month ago I laid out exactly how our broodmare partnerships work. I hope you all read it but if you didn’t you can write for a copy to Joerg at firstname.lastname@example.org In our recent broodmare partnerships the last few years there are always 50 full shares, all of equal value, at 1.8% each. The cost to get involved is the ridiculously low price of only $300 for the first year. Then the costs understandably increase in subsequent years as foals are born with more mouths to feed. At its worst, the zenith point, you have a broodmare and three foals with only expenses and zero income coming back.
The reason I opted for 50 share broodmare partnerships, instead of 30 shares as we typically use in our racing partnerships, is because the expense is far less. Its My Town and One Fast Chick, both broodmares are already in foal to the white hot Uptowncharlybrown and are expecting next spring. On the other hand, Ambling Rose, Joyce’s Angel & Kimberley Diamond were converted from 30 share racing partnerships. Thus the expenses are obviously 67% higher than our prototypical 50 share broodmare partnerships. However, the upside for these converted racing partnerships is also 67% greater because there are less partners – 30 versus 50.
With the aforementioned 30 share partnerships I heard all the complaining; especially, when there were 4 mouths to feed, two horses in training, and absolutely no income coming in. The biggest complainers came from the original Ambling Rose Broodmare partners. You see, we paid $7,500 to rescue and claim her back; then paid twice for stud fees totaling about $35,000; while still having to pay all the boarding & training expenses. The complaining was relentless because some of the partners didn’t see the big picture and lacked the necessary patience.
Then a funny thing happened…
It’s always darkest before first light. The first born son of Ambling Rose, Amblin Man started racing as a 2YO. He raced twice and was dismal as you needed a posse to find him he was so far back. The little guy, yes he’s small is the son of Any Given Saturday., I fully admit he was horrible at age two, but that was because, he had no clue about racing as he was immature. The light bulb had still not gone off in his head. If I said it once, I’ve said it a million times in that the mental aspect is just as important as physical talent. All horses go to the beat of their own internal drummer. Some take longer than others to learn what is required of the. Just ask the Alan’s Legacy partners? He was King Kong in the morning but a donkey in the afternoon. He would lose his race at the paddock and at the starting gate. I preached…Patience, patience, and then more patience. It took awhile, but with Eddie schooling him in the paddock on a daily basis he eventually figured it out. Now he’s a professional racehorse with two dominating wins under his belt as he’s closing in on a one hundred thousand dollars in earnings.
Back to Amblin Man… He had just the 2 dismal races in his two year old campaign. Then we gelded and turned him out until he was 3. The complaining continued unabated. Some of his partners actually told me to retire him as he was worthless.Lucky for you I didn’t listen. He returned as a 3YO a new horse. He started winning and before the year was done he had earned $77,000 but was claimed away for $15,000. I then had to listen to some complain why did we lose him? If you’re me, you can’t win for losing as no matter which way I turn someone is always unhappy. Not to worry as I have broad shoulders and can handle it. LOL
Anyway, Amblin Man’s $77,000 took care of all the expenses for the year for the entire Ambling Rose Broodmare partnership. The bleeding had stopped. Then along came Roosevelt Lane out of the red hot sire Twirling Candy. When I bred to Twirling Candy very much similar to when I bred to Tapit for $12,500 I heard the proverbial “WHO?” Twirling Candy’s first 2YO’s hit the auction block spectacularly as they averaged a whopping $400,000 at the OBSauctions despite a stud fee of only $15,000. All the Ambling Rose Broodmare partners that wished to sell half their holdings in Roosevelt as a 2YO (we do this with all our two year old’s) were able to prorated at $210,000.
All that sold got back their entire investment and then some. The complaining abated. In the last 3 years I have not heard BOO from any Ambling Rose Broodmare partner as they have contributed just once to expenses in all that time. This is how a broodmare partnership is supposed to work. Roosevelt Lane won twice for us and was claimed away. I got blasted for losing him in his comeback debut even though he won. He still hasn’t won for his new connections. Then along came Charlybrown’s Rose the next in line for the Ambling Rose Broodmare partnership. We raced her in a $10,000 Maiden Claimer, got the winners share of the purse plus the breeders award bonuses too but she was claimed. You’d think that the partners would have learned by now to trust us. But no as some took me out to the woodshed again for losing her. She’s a solid racehorse, and at the right level of competition, she could be another ATM. However, her new connections are clueless and have wasted 3 races running her above her head. Sooner or later she’ll be back in for $12,500 where she belongs. When reality sets it, If we want, we can take her back? Don’t you realize we always think ahead as to what we will do if we lose a horse at the claim box. Most times, we just let them go but sometimes we plan on the eventuality of getting claimed. In this game you have to take chances with contingencies if we get caught? So what? We already have the purse earnings from the win, no expenses in the interim, and can easily take the horse back in the future, that is if we want to. They are not pets. You have to race them where they can compete and win! Give us a little credit in that Mrs. Hutt did not raise a stupid son. I just can’t share with you what our thinking is because a few of you, not all, can’t help yourself from forwarding my emails. Loose lips – sink ships.
In the meantime, it took Amblin Man 2 years to get back to his winning ways but has done so with a vengeance. All totaled the little horse some of you told me to retire has now won over $150,000 in just two years of racing. And each time he wins or finishes 2nd or 3rd, the Ambling Rose broodmare partners get a nice fat check of 20% because Any Given Saturday is NOT a PA stallion. If he was by a PA stallion like Uptowncharlybrown it would be 40%. So let’s see? Amblin Man won $75,000 this year so the Ambling Rose Broodmare partners, without spending one red cent of expenses receive 20% PA breeder awards of $15,000. Does anyone have a problem with that? I didn’t think so. The same holds true for Roosevelt Lane and Charlybrown’s Rose. No expenses but breeders awards each time they finish one two or three. You don’t have to own them to receive your breeders awards. It’s like the gift that keeps on giving.
So heading into 2017 the Kimberley Diamond Broodmare partners were exactly where the Ambling Rose partners were a few short years ago at their lowest point expense-wise. There’s Kimmy with 3 mouths to feed and another one on the way. Two are in active training. And guess what? This past January the Kimberley Diamond Broodmare partners needed to put in the grand total of $90,000 for expenses. I could hear some of them whispering “WOE IS ME”.
Well a funny thing just happened to all you Kimberley Diamond Broodmare partners…
Congratulations as the first foal to make it to the race was Wait For It who won in his second try. At the beginning of the year I transferred $24,000 from the $90,000 in the KD Operations Account to WFI account to pay his stand alone “spin off’ partnership as we do with all our 2YO’s. A few smart new partners bought shares in WFI which reduced the $24,000 in capital required for six months of training by $3,200. We’ve now gone 9 months without a “cash call” although WFI was about $10,000 in the red. I knew from Eddie that Wait For It was training “lights out”. So I did not bother anyone as I covered you as I knew or hoped what was coming. WFI won one race and earned over $30,000. He went from being in the red to the black overnight as his operations account increased 217%.
Now you can sleep soundly knowing that for the rest of 2017 there will not be any cash call. Who knows there may never be a cash call again with the purses they offer at Parx. If he wins an allowance, or even better yet a stake, instead of a cash call we’ll be making a distribution. We’re pointing him toward the 7 furlong restricted $125,000 PA Bred stake at Parx on December 2nd. He should be one of the favorites having earned a Ragozin Sheet number of 16. He’s also nominated to the $100,000 Fitz Dixon Stake on October 5th at Presque Isle. This is an open stake. After looking at the nominations there appears to be some real killers in there capable of wining graded stakes. If so he’ll sit in the barn and next race in an allowance. Regardless, my point is everyone that owns Wait For It is now in the black. If you’re interested, we have just a few shares, not many, still remaining. Most of his Kimberley Diamond breeders wisely have pulled their shares off the market similar to what many partners did with Dixie Serenade. What Wait for It has done for Kimberley Diamond, Dixie Serenade, True Sweetheart and Alan’s Legacy have done for the Uptowncharlybrown Broodmare partnership not to mention the Uptowncharlybrown Stallion partnership.
So now we get to the Kimberley Diamond Broodmare partners…
Relax as you’ve weathered the storm. Last January her partnership was ten-thousand dollars in the red which necessitated a cash call of $90,000 for training expenses. Just last month with 4 mouths to feed, it was down to $38,000. Then on Labor Day… Wait For It wins! Guess What?
Just that one win changed everything dramatically. The KD broodmare partners now have a receivable from the Pennsylvania Horsemen Breeders Association in the form of a 40% breeding bonus; double dipping, on the earned purse of $30,600. Yes you now have a receivable of $12,240 (40%) just by his winning. That bumps the Operations Account from $38,000 back up to over $50,000 when I receive his breeders award in about 90 days. That’s an increase of 31.85% for just one win. You do the math as to what happens when his other siblings join the fray.
Meanwhile similar to Amblin Man for the Ambling Rose Broodmare partners, Wait For It earns breeders bonuses for his Kimberley Diamond Broodmare partners. Is this a great country or what? LOL Down on the farm at Ocala Kimberley Diamond 2016 is “tearing up the track” training forwardly for its debut next summer. So by this time next year the KD broodmare partners should soon have two horses earning their way with 40% breeding bonuses paying the expenses for the breeding going forward. I originally thought Christmas might arrive in 2019 but it appears for the KD broodmare partners, it’s arrived early. Welcome Kimberley Diamond Broodmare partners to the Ambling Rose Broodmare Club. What’s that? Gifts that keep on giving! So now we have two broodmare partnerships humming along with other partnerships about to join the festivities. Yes Virginia, there is a Santa Claus. I trust everyone is happy?
By the way, before you ask, I’m feverishly trying to get all caught up on our Operations Reports for all 25 active partnerships. I will get them out to all of you in the next few weeks so please be patient. I have to incorporate the receivable breeders bonuses. So now that you see how our broodmare partnerships work; please note we have just a few shares still remaining in the 50 share 1.8% Its My Town; and, One Fast Chick broodmare partnerships. Both are in foal to Uptowncharlybrown. If interested, just drop Janet a line by clicking here at: email@example.com The cost to join is a ridiculously low $300. It will strictly be first come – first served.