Those that tune in regularly to the celebrated financial journalist, Alec Hogg’s daily session on Radio 2000 will have heard his interview with Mick Goss last evening. Of course, having just visited us, Alec had a myriad of interesting questions to probe, including a revelation on how Racing’s most treasured relationship (with the ruling family in Dubai) developed. While that is part of the storied lore of Summerhill and South Africa, (being unique to this part of the world), it’s a topic for another occasion. What was a revelation was Mick’s conjecture on the current value of South African-bred sire sensation, Jet Master, something which very few of us had thought of until we heard this interview.
Bearing in mind that Jet Master was purchased as a weanling at the KZN Mare and Weanling Sale for a trifling R15 000, and then proceeded to reel off 8 Grade One wins during a stellar career in spite of wind “operations”, his rise to the top of South Africa’s sires has “floored” pedigree buffs and especially those believers that the imported product will always outperform local blood in its ability to shape the breed in this country. There is no surprise that these beliefs exist, as “Colonial Creep” was common trend until the very recent past.
At his newly-announced fee of R250 000 (payable upfront in cash, but with a live foal concession) and in the expectation that Jet Master will be patronized by of the order of 100 broodmares, with an approximate 80% foaling rate, he could be expected to generate something in the region of R20 million in revenue per annum. Taking the standard measurement of a stallion’s worth at three to four times annual earnings, this would place a value on Jet Master of R60-R80 million, a phenomenal appreciation on his original cost of R15 000, forgetting that his racecourse earnings exceeded R3 million rands as well!
Even financial analyst David Shapiro, who deals in billions and was part of the show, was stunned by these numbers, it remains to be seen whether in the fullness of time, he won’t turn out a “victim”!