157 Thoroughbred and auction characteristics that impact bid price when sold at online auctions

Abstract

Thoroughbreds are best known for their careers as racehorses, a career that often concludes between the ages of 3 and 6. After racing, Thoroughbreds can perform successfully in other disciplines like eventing and dressage. However, the owner demand for off-the-track Thoroughbreds (OTTBs) as mounts for second careers is not well characterized. Therefore, the objective of this study is to quantify the buyer demand for OTTBs that have started second riding careers and are being marketed through a virtual auction. Horse and auction characteristics were collected on 170 Thoroughbred horses across 39 online sport horse auctions between 2012 and 2020. Data were analyzed using ANOVA (α = 0.05) and mean separations were assessed using Tukey's HSD when appropriate (STATA 16). Bids ranged from $100 to $20,000 and the average was $2,528.25 ± 3,011.37 (mean ± SD). Horse age impacted (P = 0.001) the bid price, where each additional year increased bid price by $430.50 ± 158.7. However, when the age was squared to model an aging horse, bid price decreased (P = 0.001) with age (-$22.91 ± 6.74). Additionally, geldings brought a premium of $924.08 ± 427.84 over mares, displaying buyer preference for geldings. Horse color, especially chestnuts ($1,071.07 ± 555.28;P = 0.05) and grays or roans ($1,054.05 ± 536.41; P = 0.05), brought premiums over bay or black horses. Horse height did not (P > 0.05) impact bid price, nor did Jockey Club registration (P > 0.05) or previous training in most English riding disciplines (P > 0.05). Horses listed as trail riding mounts, though, received discounts (-$1,599.46 ± 604.58; P = 0.001) compared with other disciplines. Of the auction logistics, only registration in USEF or USHJA or USEA affected (P = 0.01) bid price, where registration increased sale price by $1,967.33 ± 820.24. This interest shows that bidders value horse registration and could suggest a valuable tool for sellers to increase their horse's bid price. By characterizing the discounts and premiums for horse and auction characteristics, equine bidders can better expect what a horse may sell for, and which attributes could lend them more competition when actively bidding. Additionally, sellers can use this information to not only calculate what premiums or discounts their horse may sell with, but sellers can increase their horse's bid by enhancing their profile with registration.