Horse racing continues to be one of the most popular sports across the world, and it has never been easier to get involved in racehorse ownership as it is in this modern day.
Syndicates offer a route into owning a horse, with the total cost divided between various people to ensure that it isn’t as expensive as buying a horse outright.
However, for many, the dream of owning a horse individually is still a passion, with many fans of the sport dreaming of having a winner in one of the world’s most prestigious races, such as the Kentucky Derby or Breeders’ Cup Classic.
However, what are some of the most important things that any potential owner should consider before parting ways with big cash?
Photo by Helena Lopes: https://www.pexels.com/photo/white-horse-on-green-grass-1996333/
Determine How Much You Want to Spend
The first, and potentially most important, consideration that should be taken into account when making your first steps into racehorse ownership is determining how much you want to spend on a horse.
If you have aspirations of winning a Triple Crown race in the United States, you will need to spend big money in the sales, and pick up a runner that has no proven form, with the only knowledge surrounding the pedigree.
This is typically one of the most expensive options but could provide excellent up-side should you pick up a champion for the future. Fees for Triple Crown pedigrees could be worth millions, and there is no guarantee of any return for that investment. You can find more information about the races in Triple Crown in Twinspires website, their official sponsor.
However, if you’re looking to own a horse for the enjoyment aspects, then the best way in could be to purchase a slightly older horse, this could cost as little as $5,000 in sales. Determining how much you’re willing to spend will ultimately be determined by what you’re trying to get out of the experience.
Take Into Account Other Costs
After buying a racehorse, you will be committed to getting the best out of your newly acquired star. However, that also doesn’t come cheap. In Southern California for example, the highest day rate to house and feed a horse can cost in the region of $120.
That price will accumulate over the month, but it does take into account the care for your horse from employees at the yard, as well as feeding, bedding, and supplies.
Trainers typically claim that they don’t take their cut from the day rate, and will instead take a 10% cut from the winnings won by the runner throughout their careers. As well as this, jockeys will also be guaranteed their money for performing horses, and they will take a cut, which is dependent on their reputation in the saddle.
For example, a jockey of world-class pedigree such as Frankie Dettori will demand a bigger cut than a rider that is just beginning their journey in the saddle.
What Other Costs Should Be Considered?
Owning a racehorse will see individuals forking out money on a constant basis to ensure that their equine star is fit and healthy to compete on the track.
As well as the standard day rate, owners will also need to pay out on other monthly expenses. These include up to $100 for a blacksmith, $75 per month for a trip to the dentist, and the same price for regular check ups with a chiropractor.
Furthermore, horses will also need regular trips to the vets, which could cost anywhere between $200 and $1,500 depending on the health of your horse.
What About Racing?
Once your horse is at their peak, entries can be made for them to enter a race in conditions that suit their style. Once again, this will require a down payment to secure your position in the race.
The class of the race determines the entry fee required, with some stakes races such as the Breeders’ Cup Classic having an entry fee of $120,000. However, it should be worth mentioning that the purse for that Grade One is also incredibly healthy, with $6 million up for grabs.
Stakes races at a smaller level will also cost a considerable price, with a $200,000 race meaning an entry fee of $3,000. As a general rule, entry fees work out to around 2% of the purse. After the race, the prize purse will be handed out based on the finishing results, with the winning runner gaining the biggest share.
Following the result, trainers and jockeys will take their commissions, before the remainder is handed back to the owner. Therefore, it is always important to consider your accounting when buying a racehorse, as unsuccessful runners on track could prove to be an expensive hobby.
Therefore, like betting, you should only choose to go into racehorse ownership if you’re able to afford all the fees without having to rely on prize money on the track.
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