The name McGaughey carries a lot of weight in the Thoroughbred industry. Trainer Shug McGaughey is a Hall of Famer, whose credentials would cast a large shadow for anyone with the same name. But his son, Chip, has made a name for himself.
As the assistant director of sales analytics for Keeneland, the younger McGaughey leads the Lexington-based outfit's efforts to expand its international presence.
"I was brought on to replace someone that...did a lot of our international market development. So that's a kind of big priority, and then also mare recruitment and then just general client relations as well as all the marketing and advertising for sales," said Chip McGaughey, who has been with Keeneland for nine years.
Although he believes if he wasn't part of the Thoroughbred industry he would probably be working in golf, McGaughey loves being able to positively impact the lives of equine athletes across the world.
He shared with BloodHorse his thoughts on Keeneland's upcoming April Horses of Racing Age Sale, knowing when he wanted to be part of the same industry as his father, and his involvement with the Thoroughbred Aftercare Alliance.
BloodHorse: You mentioned international, and that really feels like an area that is constantly evolving. How in the nine years that you've been with Keeneland have you seen that change?
Chip McGaughey: It's an open market. Different things ebb and flow and so you can see some of this growth in different nations. Obviously, with the investment that's been put into Saudi Arabia, you can see that trickle down into our sales as well. Before, they were only able to purchase mares and some horses of racing age. Now different policies were enacted. They can buy yearlings and it's a lot more lucrative over there. So we've seen our sales specifically in Saudi Arabia increase a very large portion. Conversely, sales to Russia were growing and then obviously with the conflict in Ukraine, some of those will kind of dry up. It's an ever-moving target and trying to figure out where the new market will be and how we can provide a service to make sure if they are going to buy horses that they make sure that they keep Keeneland in mind to be able to source them.
BH: Is there a particular market you see that's growing faster than you anticipated?
CM: Saudi Arabia would easily be the fastest-growing international market right now. Japan's always been one of our largest, Ireland as well. But, Saudi in terms of your growth, Saudi Arabia is just growing at an incredible rate.
BH: Thinking more about the bigger picture, how has the sales landscape changed in the past nine years?
CM: There's been a contraction of racing in the United States. .... You don't have quite as many outlets for these horses to go to with some of these track closures. With the role that I take on with international market development, it's making sure that we can find buyers from different regions of the world that can purchase horses not only at the top end but also toward the later stages of the sales, too. So it's important that Keeneland maintains something for everyone, regardless of which price point they're shopping in. And then the way the sales are organized, you can make sure that you can come for the section of the sale that you want to participate in, and you're not going to have to necessarily be here for the entirety of it. That's one of the testaments: Keeneland Sales graduates perform all around the world and in the biggest races. And, they're the cornerstone for some of these developing markets as well.
BH: You've been around the industry your whole life. When did you know that you wanted to have a career in it?
CM: I'd say shortly after college. I was always (taught if) there's any opportunity out there that I wanted to pursue, I was able to go out and do it. And like so many people that go out and experience different things about the world, they end up coming back and seeing what they truly love and grew up with, and that was kind of what I had. So coming back home just felt right and it's an industry I grew up around. I knew I did not want to be a horse trainer. Just through my parents, I understood that aspect of it, but I wanted to be involved in some capacity. And through the different routes we've taken have ended up here at Keeneland and couldn't be happier.
BH: You see more data than most people do. What stands out to you that would probably surprise a lot of people in the industry? Are there any sort of misconceptions that are out there that from what you see, would debunk those beliefs?
CM: Maybe misconceptions about the treatment of our equine athletes. Just the incredible amount of care and time that is dedicated to making sure that these world-class athletes perform at the highest level is something that I think the general public maybe doesn't get exposure to quite as much. And then the same thing with the amount of our international sales, the amount of horses that will end up in different countries and form the bedrock of their breeding and racing is always good to see. It's like Kentucky-bred Kabirkhan winning the Al Maktoum Challenge Round One (G1) in January in Dubai. He started off selling here at Keeneland to a client in Kazakhstan, raced and broke his maiden in Kazakhstan, ended up in Russia, and was one of the top horses there as a 3-year-old, but then he goes to Dubai as a 4-year-old and wins a group 1. It's just kind of a remarkable story that no matter where in the sale a horse may be, it can end up becoming a champion—one of the most respected and revered animals in that region.
BH: You've got the April sale coming up. How do you see that evolving?
CM: It's always a moving target. Obviously, horses with real recent form are going to be the standout ones. We've spent a lot of time throughout this winter just making sure that people have on their minds that we will be having this sale, this is the day, and that they should—specifically, if they have horses to try to target—end up coming here to sell. You can get a nice premium selling at the horses of racing age sales and it's an ever-growing segment. And we think and feel that it'll just continue to grow as racing becomes more and more lucrative.
BH: What do you think spurs on the growth of these horses of racing age sales?
CM: I think that a lot of people want to make sure that they can get a ready-made horse. You have the opportunity to come buy a horse on Friday the 26th and then race it the very next week at Churchill Downs Derby week. There's nothing more exciting than being able to just immediately have hopefully a good, great return. And I mean we've seen a lot of our graduates from that April horses of racing age sale, and even our November horses of racing age sale, go on to become graded stakes horses for their new ownership. And obviously, that'll just continue to grow and spur more people to enter their horses knowing that they're going to get a good result.
BH: Your involvement in the industry goes beyond what you do for Keeneland. What areas are you passionate about?
CM: I was on the board of the Thoroughbred Aftercare Alliance for a very long time, I actually just rotated off, but that's another thing going back to the treatment and care of these equine athletes. I mean, the TAA does such a great job of making sure that all of these organizations are funded to be able to take on the horses after their racing careers are finished. And again, that may be another facet that isn't quite brought to light quite as much, but it is such a good umbrella organization to make sure that all of these horses are taken care of. But also Keeneland is really good just in that we're all in a partnership together with our clients. So it's not necessarily we make a sale and then it's the end of the story. So we want to make sure that when our clients do well, we're celebrating in that success with them. We want to see everyone get their horses sold. And when we have buyers that come in and buy, we want those graduates, those horses, to go on and perform on the racetrack and lead to repeat sales down the line.
BH: Who or what inspires you?
CM: I've always looked up to my father, obviously with his work ethic and how long he's spent in the industry, and how much when people speak about him the reverence that he gets, just all the high marks and the high regard that people hold for him. It was always something that I aspired to but also want to make sure that I'm able to represent Keeneland in the best light possible. And Keeneland is such a beacon within our industry. I think that's such an important thing, and it's not like we're getting a cut of sales or anything like that—there's no bonuses or shareholders that are getting paid out for a successful year. It's just being able to put that money back into the industry. So it drives us to be able to recruit the best horses possible to sell and generate as much revenue so that we can put as much back into the industry; whether it be through purses for racing or charitable endeavors, you name it. It's founded off of the idea that it's all about the horse and whatever we can do to help the horse. That's the most important thing.
BH: Where would you like to see yourself 10 years from now?
CM: Hopefully, still at Keeneland. When I was offered the position it took me a little while to accept it just because not only (was I) making a change from something that I was comfortable with and enjoyed working at when I was at Cornett marketing and advertising, but I just knew that if I did take this position that I would never want to go anywhere else. So it was kind of a tough decision just knowing that you're hopefully solidifying your life and career path. So yeah, the goal is to always continue to be here and represent Keeneland to the best of my ability.
