An
elegant carriage, beautifully dished face, large liquid brown eye, and the
movement of a ballet dancer define the stunning breed of horse called the
Arabian.
In the
United States, this breed more than many others, has had its financial ups and
downs, much like the stock market in the not so distant past. This history is alive and the information
invaluable.
Arabian horses
were first imported into the United States in the mid-1800’s. During the Chicago World’s Fair of 1893, they
received a tremendous amount of attention.
Turkey displayed 45 equines, and two became the first to be registered
in the Arabian Studbook of America.
In 1906
Homer Davenport imported 27 horses.
Shortly thereafter a registry was formed, and recognized by the United
States Department of Agriculture. In the
1920’s and 1930’s Arabians were imported by W.K. Kellogg. Roger Selby imported
England’s Crabbet Stud horses. Breeding
programs began springing up all over the United States, as Arabians were also
brought in from Spain, Poland and Egypt.
In the 1960’s
the horses with Crabbet breeding were all the rage. These bloodlines were later referred to as
course; however, they have proven themselves over time, to be sturdy, athletic,
impactual and thus, important to the breed. In 1969
Wayne Newton purchased an imported Russian Arabian stallion named Naborr. He paid the large sum of $150,000.00 for the stud. Mike Nichols, the famous Hollywood director,
also began breeding Arabians in the 1970’s. Shortly thereafter, they became the living art and
status symbol that every celebrity, or wealthy individual needed to have in
their art collection. In the
1960’s it was reasonable to pay $25,000.00 for a top of the line Arabian
horse. In the 70’s the same horse
brought $30,000.00, while in the mid-80’s the price sky rocketed to $478,000.00
In 1963, the Lasma Arabian Stud, owned by the LeCroix family imported
*Bask , A Polish stallion that later became a
National Championship winner at both the halter and performance classes.
His stud fee was $500.00 in 1963 and later
rose to an astronomical $10,000.00 by 1975.
*Bask sired 1,046 Arabians, and 194 of them were national winners.
In 1971 the first Lasma sale, the average
price for the sale horses was $19,000.00.
A *Bask daughter brought a stunning $56,000.00, and Mike Nichols
purchased another *Bask bred mare for $117,000.00.
In the
1980’s a large marketing push to the wealthy displayed the Arabians as an
investment. Because they were scarce,
magnificently beautiful, and exotic, they made an attractive investment. The fact that they also offered a tax write
off only added to their allure. The tax
laws permitted the depreciation of the cost of breeding animals for five
years. At this time, investors wanted
not only the tax write off, but also the status that these horses symbolized. Potential investors were wined and dined and
educated on the tax advantages of the Arabian horses as an investment. The
opulent auctions, that investors attended, had state of the art lighting, fog
machines, performances by popular singing artists, and a luxurious atmosphere
that allowed these magnificent horses to be showcased in an opulent atmosphere. At the pinnacle of their popularity, Lasma
would even give away a new Cadillac to the highest bidder at their auctions. Banks
became involved and interested in this “living art” as a commodity, and began
helping buyers finance the horses. Once
a high selling horse was purchased, pictures were placed in all of the
important magazines and newspapers.
Private parties and other photo opportunities created a fast paced
exciting and tantalizing atmosphere. New
buyers were needed in order to keep the enthusiasm and selling prices
high. Many celebrities got
involved. Non celebrities or “newbies”
were attracted in order to be involved with the exclusive parties and be part
of the “in crowd.”
During this period, an imported stallion of Russian breeding, Padron, was
syndicated for the unheard of price of $11 million dollars.
He went on to sire many National champions
and sired over 700 progeny.
Many *Bask
sons and daughters also set high records at the auctions.
Unfortunately, often times the price paid was
not truly reflective of the value of the equine.
Promoters and trainers would often combine
training, and breedings to their stallions, into the total cost.
Many lawsuits and allegations of impropriety
followed.
People rushed to purchase these beautiful horses, each one hoping that they
would sell the next high priced or syndicated horse.
In just four years between 1982 and 1986 100,000 Arabians were registered in
the U.S.
This is more horses registered
than in the sixty five years previous.
In 1965 11,000 Americans owned Arabians, and by 1986 the number was
110,000.
Unfortunately the Tax Reform Act of 1986 brought this gravy train to a
screeching halt.
Legislators passed laws
that no longer allowed the full deprecation and expensing of horses.
Both the Arabian market and the Race Horse
Industries were hit hard by these new laws.
Unfortunately, the horses suffered the most as many who had sold for six
figures ended up being dumped at low end auctions and sold for a fraction of
their previous selling price.
Registrations dropped considerably, the foreign market dropped, and prices
plummeted.
Lasma liguidated its stock in
Arizona and Kentucky.
Breeding
businesses collapsed and registration slowed considerably.
While thousands of people got out of the
business of breeding Arabians, there were those who were passionate about the
breed, and stuck it out. Many horse
people viewed the crash as a good turn for the Arabian horses as a whole. The new market, albiet smaller, created
better horses and focused on the excellence of
the horses themselves, not the possible financial advantages.
Although the Arabian market still struggles, the market overseas, especially in
the Middle East is robust.
Some horses
still bring the six figures and stud fees can compete with those from the
1980’s.
But they are the rare horses.
Here in the states, a market for amateur
sport horses has taken root, and a show called the Sport Horse National
Championship Horse Show that features Anglo-Arabs, Half-Arabs, and full blooded
Arabians is put on by the Arabian Horse Association each year.
USEF and USDF carded judges choose winners in
classes such as dressage, working hunters, jumpers, conformation and carriage
driving.
Eventing has also become
popular amongst Arab Sport horse owners.
This movement towards performance horses is more affordable for the average
horse owner because a professional trainer need not be involved.
This gives people a more financially feasible
way to enjoy and show at regional and national shows.
There are more registered Arabian horses in the United States than all other
countries combined.
An unbelievable 67%
are used for recreational purposes only.
The average selling price of an Arabian in the U.S. today is $5,000.00;
however, there are those people who still believe that their horse is worth six
figures and that they will be the next big syndicator or seller.
Top show horses, of course, sell for
considerably more money.
But those who love this kind, intelligent, elegant and beautiful breed of
horse look far past the dollar signs.
There passion creates Arabians that hold true to the excellence of the
breed for today and for future generations.
