by Jeff Lowe

An A.P. Indy colt out of 2002 Horse of the Year Azeri failed to meet his reserve on a final bid of $7.7-million on Monday in the Keeneland September yearling sale, the highest buy-back price in public auction history.

Michael Paulson set the reserve as the manager of the Allen Paulson Living Trust.

John G. Sikura of consignor Hill ‘n’ Dale Sales Agency initially deferred comment to Paulson, who left the Keeneland sales pavilion shortly after the hammer dropped. The underbidder was not immediately clear.

The colt, named Vallenzeri, is the first foal out of the Jade Hunter mare Azeri, a three-time champion older mare who retired as the leading female earner in North American racing history with a bankroll of $4,079,820.

Paulson’s father, Allen, bred Azeri. Allen Paulson died in 2000, and she raced for the living trust.

“The buyers came up a little short,” Michael Paulson said later by telephone. “We were hoping that whoever did buy him, we would be able to keep a small percentage in him. This gives us an opportunity to put a group together to race this horse, and we’re hoping that he becomes an excellent runner.

"My wife [Lenora] and I have emotional ties to the horse. We were there the day he was born, and I spent days deciding on the mating plans. We are emotionally tied to the horse.”

The previous highest buy-back was $7.5-million for Ajdal in the 1985 Keeneland July selected yearling sale. Bruce Hundley, agent, consigned the Northern Dancer colt for Oxford Stable. Ajdal went on to win three Group 1 races as England’s champion sprinter of 1987.

Jeff Lowe is a Thoroughbred Times staff writer