Bloomberg TV is reporting that Crown Prince of Dubai Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum is cutting his yearling purchases by 60%. You've got to think that if Bloomberg is reporting on horseracing, then the bottom of the sales market will start to fall out.
The Crown Prince is known to be in trouble over the extravangant coastal development he has invested in. Apparently, he has gotten a loan from the United Emirants to tied Dubai over, but the financial experts are in agreement that sooner or later robbing Peter will not enable Dubai to pay Paul, forgive the pun.
Dubai Prince Cutting Yearling Purchases
Moderators: Roguelet, WaveMaster, madelyn
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Shammy Davis
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Shammy Davis
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Maybe the Prince didn't realize how low his bank account or treasury was getting. The report was on the Bloomberg ticker this evening at the bottom of the TV screen. I've been watching Bloomberg for sometime and it really surprised me to see the report. I don't think I've ever seen Bloomberg report on horseracing. Maybe BH, TT, the DRF will pick up on the information and we'll get a full report. My eyes aren't exactly what they used to be, but the ticker passed twice during the Charlie Rose show and I'm sure I read it right.
It is certainly old news that Dubai is deeply in debt because of its extravangant development plan for seaside resorts and communities.
It is certainly old news that Dubai is deeply in debt because of its extravangant development plan for seaside resorts and communities.
Shammy Davis wrote:Maybe the Prince didn't realize how low his bank account or treasury was getting. The report was on the Bloomberg ticker this evening at the bottom of the TV screen. I've been watching Bloomberg for sometime and it really surprised me to see the report. I don't think I've ever seen Bloomberg report on horseracing. Maybe BH, TT, the DRF will pick up on the information and we'll get a full report. My eyes aren't exactly what they used to be, but the ticker passed twice during the Charlie Rose show and I'm sure I read it right.
It is certainly old news that Dubai is deeply in debt because of its extravangant development plan for seaside resorts and communities.
I would wonder what Bloomberg's basis for the information is--do they seriously have any idea what he normally spends on yearlings in a year? 60% of what number exactly are they referring to? And in which sales has he reduced his buying...presumably the european ones because certainly not at Keeneland. Has it occurred to them that having bought so many in KY that perhaps he's already gotten all he wants for 2010?
Frankly I'd be very surprised if Sheikh Hamdan didn't have a better idea of how much money is in his treasury than a Bloomberg reporter does.
here's a link to the video. nice to take a look around there.
http://noir.bloomberg.com/avp/avp.htm?N ... srKsbs.asf
If the sheiks decided to stop buying it would have about the same effect on the industry as the having the Chinese stop buying US debt. Short term collapse, long term pain and maybe even the end of the game as it has been known of late.
Credit markets at this level are personality driven. Somebody (like a sheik) is perceived as good for it or not. A simple credit check at a sale will not reveal whether the sheik is responsible for some multi-billion dollar boondoggle off the coast of Dubai and actually under water. The sales companies want the sheiks there - they need the sheiks there.
jm
http://noir.bloomberg.com/avp/avp.htm?N ... srKsbs.asf
If the sheiks decided to stop buying it would have about the same effect on the industry as the having the Chinese stop buying US debt. Short term collapse, long term pain and maybe even the end of the game as it has been known of late.
Credit markets at this level are personality driven. Somebody (like a sheik) is perceived as good for it or not. A simple credit check at a sale will not reveal whether the sheik is responsible for some multi-billion dollar boondoggle off the coast of Dubai and actually under water. The sales companies want the sheiks there - they need the sheiks there.
jm
Run the race - the one that's really worth winning.
Yes Dubai got a $20billion loan from Abu Dhabi last February to tie itself over.
The only problem with the Arabs is their wealth is in the ground.
Sheikh Mansour (of Manchester City fame) and his family run Abu Dhabi and their family have a personal wealth of $560billion.
So lending Sheikh Mo $20billion untill he can get some of his oil outta they ground won't be called in urgently.
Sheikh Mohammed is getting older has won most of the major races around the globe, his emphasis is moving away from buying big at sales to buying stallions and mares and breeding his own ala Juddmonte (minus buying the stallions they breed their own) this has been happenning for the past 2 years. Sheikh Mo bought out the Mcnair's in the USA and spent $500million in Australia buying out Woodlands, he has spent money on horse just not at the sales.
Expect him to buy the next big G1 winning Speighstown or Mr Greeley colt.
The only problem with the Arabs is their wealth is in the ground.
Sheikh Mansour (of Manchester City fame) and his family run Abu Dhabi and their family have a personal wealth of $560billion.
So lending Sheikh Mo $20billion untill he can get some of his oil outta they ground won't be called in urgently.
Sheikh Mohammed is getting older has won most of the major races around the globe, his emphasis is moving away from buying big at sales to buying stallions and mares and breeding his own ala Juddmonte (minus buying the stallions they breed their own) this has been happenning for the past 2 years. Sheikh Mo bought out the Mcnair's in the USA and spent $500million in Australia buying out Woodlands, he has spent money on horse just not at the sales.
Expect him to buy the next big G1 winning Speighstown or Mr Greeley colt.
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Shammy Davis
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LB, I don't know what Bloomberg's source is. I just reported what I read on the ticker.
What the Dubai Prince did yesterday at the sales does not rule out what he will do in the future. Maybe, he is projecting his purchases for next year and somehow Bloomberg got wind of it. Are there any yearling sales of any value held from late Oct until the Spring of 2011? I don't think so.
Just before I turned to Bloomberg, BBC America did a comprehensive report on the very troubled international currency market. The international TB market is not immune to this. China is the number one player in currency value becaue of its large export surplus.
If you want my opinion, I believe the ticker was reporting on his 2011 projections. Again, I don't know where Bloomberg got its information.
Recently, I read an article on shuttle stallions to Australia. I was interested to see that Australia was looking to China as a new sales market. Who would have guessed? The Asia Pacific TB market may have a new player. Just goes to show us that surprises can abound in a weak and vulnerable international economy.
If there is something to this Bloomberg report, TT, BH, and DRF will report on it.
What the Dubai Prince did yesterday at the sales does not rule out what he will do in the future. Maybe, he is projecting his purchases for next year and somehow Bloomberg got wind of it. Are there any yearling sales of any value held from late Oct until the Spring of 2011? I don't think so.
Just before I turned to Bloomberg, BBC America did a comprehensive report on the very troubled international currency market. The international TB market is not immune to this. China is the number one player in currency value becaue of its large export surplus.
If you want my opinion, I believe the ticker was reporting on his 2011 projections. Again, I don't know where Bloomberg got its information.
Recently, I read an article on shuttle stallions to Australia. I was interested to see that Australia was looking to China as a new sales market. Who would have guessed? The Asia Pacific TB market may have a new player. Just goes to show us that surprises can abound in a weak and vulnerable international economy.
If there is something to this Bloomberg report, TT, BH, and DRF will report on it.
The quote in today's TB Times about the Bloomberg story references Sheikh Mohammed's spending at the sales this year, not Sheikh Hamdan's. And yes, Sheikh Mohammed has definitely cut back. As Dublino pointed out, he has recently purchased two major dispersals and is now more focused on breeding than buying.
Even with Sheikh Mohammed's reduced spending at the U.S. sales, however, the market still held up. I would expect the same will probably be true in 2011 regardless of his direct involvement or lack thereof.
Even with Sheikh Mohammed's reduced spending at the U.S. sales, however, the market still held up. I would expect the same will probably be true in 2011 regardless of his direct involvement or lack thereof.
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Shammy Davis
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Shammy Davis
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Here's a Nov 2009 article on the sheikhs and their influence on English racing.
http://www.timesonline.co.uk/tol/sport/ ... 920688.ece
http://www.timesonline.co.uk/tol/sport/ ... 920688.ece