Date

5-23-2025

Department

College of Arts and Sciences

Degree

Doctor of Philosophy in History (PhD)

Chair

Carey Roberts

Keywords

Arabian Horse, Horse market, History of Arabians, American Arabian Horse, Arabian Horse Registry, Arabian Horse Show

Disciplines

History

Abstract

The Arabian horse world in the 1980’s was characterized by high prices followed by an unprecedented fall of the market. The Arabian horse industry was a boom and bust cycle, much like the Dutch Tulipmania of the 1630’s. Many breeders reveled in the status of owning an Arabian and prospered in this inflated market. They could make a quick profit buying a horse and reselling it a short time later, as the prices quickly rose. High prices, which were the boom, turned out to be the issue. The horses, referred to by many as living art, were not a good investment as many thought they would be. The culture of the Arabian horse industry was one of luxury. With auctions that combined entertainment, décor and hype, buyer overspent on horse purchases, thinking they could make a profit breeding the exotic Arabians. The upkeep alone was enough to negate profit. However, this living art that could reproduce itself was seen as not only profitable, but it was trendy as well. When the market corrected, following a change in tax laws that ended non-racing horses as depreciable, many woke up to realized they had overpaid for horses. Some discovered their horse was not as valuable as it was presented to them. Others found out that their valuable mare could not produce foals that could sell for the high prices to make up for the initial investment. The tax laws changed in 1986, closing a loop hole that investors relied on. In short, those who sought to profit off the trendy Arabian horse found themselves with animals that they could not sell for what they bought them for. Into the 1990’s and 2000’s, some remaining herds fell into despicable conditions. Many breeders got out of the business altogether. Due to market decline, Lasma Arabians folded. Other large farms closed their doors or simply retired. A few of the respectable breeders, such as Varian Arabians, were able to survive the market crash due to their impeccable reputation and high quality horses. Almost a decade after the death of founder Sheila Varian, horses bred by her are still winning and producing winners at the National level. Greed and horses are not a good combination. This is the lesson learned from the tale of the 1980’s Arabian market. Animals are not the same as artwork, and while their beauty is unmatched in the equine world, those who sought to make a sizable profit from them should have stuck with buying works of art.

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