2025-26 - Interesting........

The rumblings are out there to indicate that this could be a tough year again for those who are trying to establish themselves in the mid to low end of all markets. We all know that the top will be strong as the wealthy protect their investments however with no drive from the bottom we should see further softening of the market.

I've seen stables in both the provincial-country regions of NSW feel the impact of the decline with minimal spend on all aspect of their businesses. Some of the prominent stables that would run 30-40 are now pulling back to 20 and their investment in both tried/untried bloodstock has stalled. With the flow out of the metropolitan scene evaporating and owners holding their chips this will only get worse over the next 12 months. We saw in 2024-25 the setting up of country satellite stables by the likes of Neasham Racing which saw them pull over $1.6M out of the system compared with $831k in 2022-23. Prizemoney remains at record highs and this is a must as the cost of training skyrockets. Monthly bills of a minimum $4,500 plus are expected and with the $10k marker being reached in town you can see why they are scouting wider to make racehorse ownership sustainable.

The pre-trainers are also seeing a decline in their numbers as trainers throughout NSW doing the trot and canter phase to keep their boxes full. These key indicators further strengthen the opinion that the racing industry will continue its correction. Service fees of champion sires are being slashed, and the hobby breeders are scarce as the online auctions are filled with non commercial mares in foal to sires who can't net a positive return.

My advice is if you are running a racing industry business in 2025-26 by proactive to change. You will need to scrap a bit with tight profit margins where buying your way out of trouble can't be achieved.