Computerized Stallion Companies : Staid Breeding Industry Changing

In an apparant affirmation that the idea has taken hold in the usually staid thoroughbred industry, another computerized exchange for stallion seasons and shares is scheduled to open next month.

And this time the company is backed by one of the pillars of the breeding industry, Fasig-Tipton. In conjunction with Bloodstock Research Information Services Inc., the auction firm is opening Stallion Access.

“It was a natural marriage,” said Stallion Access President Ric Waldman. “Bloodstock Research provides the industry with pedigrees via their computer terminals. And Fasig-Tipton, which is mainly an auctioneering firm, provides us with their base and services and locations. There is a steady following of clients who will accept any function which Fasig-Tipton sanctions.”

Stallion Access becomes the third computerized exchange in Lexington, but it will be the first to allow traders to buy and sell seasons instantaneously.

The first of the services was International Shares and Seasons Information Exchange, started in mid-1984. That was the first service to offer an orderly listing which gave bloodstock agents the ability to find out what shares and seasons were available.

Matchmaker Breeders’ Exchange followed shortly thereafter and was the first to provide a “bid and ask” market for its members.

Waldman said Stallion Access brings the process one step forward. At Matchmaker, there is a designated time period before transactions can occur. At his company, a sale can be made instantaneously over a computer terminal.

“What you see is what you get,” Waldman said. “If you say I’ll take it, it is yours. You don’t have to wait for some time period and then wait for a drawing in case somebody else wants it.”

Stallion Access also differs from Matchmaker by offering “live foal seasons,” as well as unguaranteed matings with stallions, Waldman said. A live foal season requires no payments unless the mare produces a live foal.

“There are some stallions that just shouldn’t be traded on a no-guarantee basis,” Waldman said.

Waldman said he was not concerned that the exchange business was becoming too crowded.

“A lot of business we attract will be from the others, but we will also be creating some new business that has not been transacted before,” Waldman said.

Barry Weisbord, the president of Matchmaker, said he believed there was room for another exchange, and said his firm would watch closely the track record of Stallion Access.

“We may take a few things out of their playbook,” he said. “We will not be stagnant. We will continue to be an innovative company.”

And Weisbord said he took it as a compliment that Fasig-Tipton was entering the field, in essence putting a stamp of approval on Matchmaker’s idea.

“We can’t say we’re thrilled (at the prospect of competition),” said Weisbord. “For the first few months we took a lot of heat in this town. People said we were going to ruin the industry. But now Fasig-Tipton and Bloodstock Research are in our business. We think this will diffuse some of the criticism.”