Arabian Gold Rush, continued
formed. T e marketing and publicity machines behind the sales encouraged prices to skyrocket as the newbies continued to pay exorbitant prices for the sellers’ other horses, assuming that was their true value. Many celebrities were introduced to the Ara- bian horse via these breeders and trainers, and other owners such as Occidental Pe- troleum’s CEO Armand Hammer. People such as Merv Griffi n, Buck Henry, Shirley McLaine, Jackie Onassis, Patrick Swayze and Candace Bergen found themselves caught up in all of the excitement. For noncelebrities, the attraction was to be able to rub elbows with the famous and participate in the exclusivity of owning these special horses. At the height of the frenzy in 1984, a
mare named NH Love Potion sold for $2.55 million. She was a “Triple Crown” winner in halter competition, meaning she had been named Champion at Scottsdale, U.S. Nationals, and Canadian Nationals. Unfortunately, that buyer defaulted on the loan, the mare was repossessed and resold. She only produced three foals in her lifetime. Also during this time, the imported Russian-
appraisals of value, shilling, and many lawsuits.
The Gold Rush T e skyrocketing auction prices Arabian
horses brought had a Gold Rush-like eff ect on horse people or wannabe horse people, with ev-
Swift & J. E. Vader in Sports Illustrated revealed the excesses of the Arabian market, the horse industry in its entirety found itself caught up in and cut down by T e Tax Reform Act of 1986. It could be argued that this Sports Illustrated
article played a role in convincing legislators to disallow the full value deprecation and ex- pensing of horses, which in turn led to the collapse of not just the Arab market but the race horse breeding industry as well. Certainly, the authors chided our elect- ed offi cials when they wrote: T e greatest fool of all is probably Uncle
At the height of the frenzy in 1984, this mare, NH Love Potion, sold for $2.55 million. Unfortunately, that buyer defaulted on the note, the mare was repossessed and resold. She only produced three foals in her lifetime.
bred stallion *Padron was syndicated for a re- cord-breaking $11 million by David Boggs and went on to be the sire of over 700 horses, many of them national winners. T ere were several *Bask sons that were syndicated for $75,000 to $250,000 per share. Moniet al Saharaf set a re- cord for the highest Egyptian Arabian stallion syndication in 1986 at $10 million. T e prices being paid at the time didn’t nec-
essarily refl ect the actual value of these horses, as the trainers/promoters would roll marketing, breedings to their stallions, and training services into the ultimate price paid for the horse. T is resulted in allegations of impropriety, infl ated
eryone wanting to get in on the Arabian act, hoping to breed and sell the next $100,000 or million-dollar horse for themselves. Between 1982 and 1986, over 100,000 pure-
bred Arabians were registered in this country (more than had been registered from 1908 through 1973). T e number of Americans owning registered Arabians went from 11,000 in 1965 to over 110,000 in 1986. Like the other excesses of the 1970s and early 1980s, it was all about to come to a screeching halt.
Party Over/The Hangover Perhaps it is coincidental, perhaps not,
that after a January 13, 1986 article by E. M.
Sam, whose loophole-fi lled tax code allows Arabians, like milk cows, to be depreciated for their full value in three to fi ve years, de- pending on their age. T e expense of keep- ing Arabians can be written off dollar for dollar, and any profi t from their resale is taxed, not as income, but as a capital gain, provided one has owned a horse for at least two years. For unlike any other investment of its kind…gold, fi ne art, real estate, diamonds or stocks,” reads the press release from Star World of Arabians, an off shoot of Lasma, “…T e Arabian horse is a living creature
that can reproduce in its own image…return af- fection and turn a profi t.” Let’s see Merrill Lynch match that. Actually, the Wells Fargo Bank is willing to try. “Consult with our Arabian horse specialist…” reads Wells Fargo’s ad in Arabian Horse World…
T e 1986 tax reform law discontinued the pas-
sive investment allowance that was so benefi cial to horse owners and breeders. Many horse op- erations, large and small, lost millions of dollars over the next few years. With a down market coupled with an inventory at an all-time high, Arabian horses that had previously been selling for six fi gures were now being repossessed by
continued...
SanC Mar Stables (301) 972-7347
◆
ombined Training • Dressage Boarding • Training • Lessons
Poolesville
Features: large box stalls with rubber mats • wash stall • heated tackroom • indoor arena • lighted all weather outdoor ring • large turnout pastures
www.equiery.com | 800-244-9580
BUILDINGS: Custom Designed & Built Post and Frame Horse & Livestock Barns • Arenas Equip ment Storage & Shops • Garages
FENCING: Livestock
Wood Board • Horse “No Climb” • Wire Mesh American Wire • Hi-Tensile • Vinyl Tape
Installed or Materials Available
4111 Lander Road • Jefferson, MD 21755 (5 miles from Frederick, MD)
www.phdrayerco.com • 301-473-4466 BLUE RIDGE TRAILERS, LLC
Dealer for GORE TRAILERS Mfg.
www.blueridgetrailers.com • 301-473-1234 AUGUST 2011 | THE EQUIERY | 39
837330-110811
836251-110711
Arabian Horse World Magazine
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96