The Keeneland September Yearling Sale in Kentucky achieved record-breaking results this year, grossing $536.7 million, which exceeded last year’s total by approximately $5 million. The auction, which concluded on September 26, featured 70 yearlings sold for at least $1 million, up from 56 in the previous year, marking the highest number in 19 years. The average price per yearling increased nearly 7%, reaching $187,933.
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A standout purchase was a dark bay colt sired by champion stallion Into Mischief, which sold for $3.7 million. This colt is notable for being part of a group of investors that includes paper mogul Peter Brant; Into Mischief has previously produced three Kentucky Derby winners.
Len Green, a horse breeder and accountant, credited tax incentives from recently enacted legislation for boosting auction results. Specifically, the OBBBA, signed into law last year, reinstated 100% bonus depreciation for qualified business property, allowing racehorse purchasers to deduct costs in the first year of ownership. Green noted that such benefits make the horse business an appealing investment as it provides both potential tax deductions and public visibility.
Despite initial concerns that the ongoing conflict in the Gulf region might deter wealthy buyers from the Middle East, attendance at the sale remained unaffected, according to Shannon Arvin, president and CEO of Keeneland. International buyers, particularly from Qatar, Saudi Arabia, the UAE, and Libya, accounted for about a quarter of the yearlings purchased.
The largest acquisition group at the sale consisted of four partnerships that collectively spent $16.2 million on 20 horses. Arvin observed that while partnerships have become more common, they have not diminished overall sales; in fact, they allow investors to diversify and enhance their chances of success, fostering a sense of camaraderie among the buyers.