There have been a few murmurings of discontent over Lee Freedman's "purchase" of the $2.2 million colt (OVERLORD) at last year's Easter sale. The vendor was Coolmore (as agent) and the ultimate buyer was also Coolmore. Unfortunately by the time that fact had been aired the publicity machine had well and truly run its course and the "frequent flyer PR miles" for various stallions/individuals had already been racked up.

'Big deal' some would say.

At the risk of sounding naive I have to state that these practices have serious repercussions for our Industry.

Many immediately lay the blame at the foot of marketing and in many ways I accept that marketing DOES have to absorb some of the blame as today's competitive environment (and budgets) mean that all manner of "just legal" practices are indulged in to maximize the profile of a client.

But I am seeing an increasing amount of abuse of marketing practices and frankly the Industry needs to wake up to itself.

One example is the (seemingly) shameless over-hyping of first season sires. Expensive "buy backs" of first crop weanlings/yearlings are part and parcel of the industry but SHOULD be disclosed as such. Allowing the media to flirt with the secrecy and post all number of "hypotheticals" to stir the interest of the general public when there is inadequate disclosure plays to the benefit of only one group - and it isn't the consumer.

The thoroughbred industry has so far managed to dodge many of the standard principles of corporate and competition law that regulate other industries and assist in keeping them 'clean' (or the matter of front page headlines that usually have 'scandal' in the same sentence when they do cross the line.)

In corporate circles the practice of artificial inflation of stock in a company is illegal. I would refer you to the case of Rodney Adler, former director of HIH and One.Tel recently sentenced to four-and-a-half years gaol for crimes involving false and misleading information, some of which may have induced others to buy HIH shares. A Labor spokesman was quoted at the time of sentencing as saying:

"The community has very high expectations of corporate officers and given the failure of Mr Adler in his duties, a custodial sentence was clearly warranted. There is no place in our society for [this] type of activity."

Indeed.

Conflict of interest is another major issue for modern-day corporations. So much as hint of a 'deal' and you're out the door, your credibility with it.

Despite the 'toothless tiger' a.k.a the recently introduced code of ethics, the thoroughbred industry still largely enjoys a carte blanche when it comes to non-disclosure - and for those that think the practice is concentrated at a particular end of the market - think again.

There are all number of weanling/yearling/2yo/tried race horse/stallion/broodmare buy-backs that can be easily traced with a bit of research and a few hours spare time. And with current regulations (or lack thereof) there is absolutely nothing stopping someone from partaking in the practice. The result however is that it becomes almost impossible to distinguish what is real money from what is 'PR-enabled'. Such practices stifle competition, empower the more financial players and create a tension between hype and a market unable to sustain 'dot com' prices. This ultimately results in a major pricing readjustment (and a number of smaller players being burned in the process) as well as a more fundamental credibility issue for the industry - particularly from potential clients that we (ironically) are spending so many thousands of dollars attempting to entice to the 'ownership circle' in the first place.

Corporations and competition law 101 ...there's a lot to be said for the basics.