well no, it's not possible, not right now.

A while back I asked an apparently rhetorical question (nobody answered) about whether it would be possible for 2 veteran horse racing professionals to disappear from the business for 5 years and then return to start a new racing stable from scratch in the US.  We tried to do it starting April 2009 and we gave up about 1 year later.  Even with the advantage of our own investment startup money, we were not able to sustain the business, also despite our previous 30 years of experience, contacts, former successful investors, early success with a small stable, all new technology to help attract and retain clients, in short every possible advantage.  So what was the problem?  I will try to summarize:

1. race purses are not high enough to sufficiently offset the costs of racing, shipping, routine veterinary work, feed and payroll.   You might be OK if you always finish 1st or 2nd with every horse or if every horse has an owner willing and able to pay $75/day toward the maintainence of each horse.   In order to get started we had to own a few horses or take half ownership of client horses, and we had too many 2nds with those horses. So in a race with a $10,000 purse, we had too many finish 2nd for a 20% share or $2000 instead of a winner's 60% share or $6000.  A 2nd place finisher earning $2000 only covered his own expenses for 1 month.  If that horse needed 2 months between races, we are in the hole if we own him.  We had 7 wins, 10 seconds, 4 thirds during the year - if 2 or 3 of those 2nd placers had won we might have broken even most of the year.

2. we were unable to recruit an owner willing to send us a horse and pay $75/day toward his care.  It was our experience that for owners to be willing to take a chance on our start-up (even if they were our former clients in years past), they required a significant discount on day rate, generally $55-$65 was the day rate they would pay.  It was our experience racing in Kentucky, Indiana, Illinois and Florida that this rate will not allow a trainer to break even on shipping, feed, payroll and the cost of rental housing while traveling - especially if too many horses finish 2nd instead of 1st.

I think this is part of the reason for the trend toward the mega-stables, the old "economy of scale" rule.  These stables have enough cash flow to keep the whole machine running even if some owners get behind on monthly invoices.  A small start-up can't carry owners who get behind because they must have enough cash on hand to make payroll and to buy feed.  Unfortunately in a mega-stable, the individual horse is often lost in a crowd.

3. we were unable to organize partnerships of 2-5 investors to claim horses.  This may have been due to the state of the economy in 2009 and 2010, because we had 8-10 investors interested who backed out when it came time to deposit several thousand $ with the track bookkeeper.  Most people said the timing was bad.  If we could show them something about the investment to help them see it as a way to help their business with networking opportunities, then things might have been different.

A private club for owners at the track would work wonders - most tracks offer trainers some options to give owners access to a jockey club suite or dining room reservations when they have a horse "in", but these are very ineffective for attracting new owners.  The track needs to have a big room with easy access to paddock and winners circle for elderly owners or those who can't deal with crowds, food and drink in a chic atmosphere, and only open to licensed owners with 5% or more share of a horse and licensed trainers - and no additional membership fee - essentially an upscale "horsemen's lounge". One reason tracks don't do this is because they don't know who the owners are - the corporate office, the racing office and the bookkeeper don't share owner and trainer data.  An owner has to go through a time consuming and expensive process just to get licensed, giving all their personal data to the state's racing commission, including percent ownership and home address, yet when you call the bookkeeper to get a check from your account they have no idea what your address is?  The "front side" (corporate) and the "back side" (horsemen) of the tracks don't usually work well together if at all and that's a shame. 

4. synthetic tracks were a big, major problem for us.  If you have a horse that has never run on a synthetic track before, but the only available race when he is ready to run is on synthetic then it's a huge gamble to try him on it.  A small stable can't afford to gamble like this but we felt we had to do it, and in every case we lost the gamble either due to a very consistent dirt or grass horse not handling the polytrack at all, or due to injuries on polytrack.  If you don't have an owner to pay the upkeep, the only way for the horse to support himself is to race.  If the horse doesn't like synthetic, you have to ship to the dirt or turf race and that costs money that the owner is gambling to recoup in the race.  Shipping is very expensive.  So you end up gambling on the shipping expense or gambling on the surface, neither is sound business.

We had 3 injuries all year, all on polytrack, one during a race at Keeneland which was a race career ending suspensory (we gave him away so we took a huge loss, but he is now a show horse so that's a bright spot, see his recent photo taken January 2011 at right), one during training at Keeneland which was a hind pastern fracture requiring 3 months rest, and one front tendon in a race at Arlington in which our horse finished 2nd (we sold her at a $10k loss). 

So we plan to return to Saudi Arabia to train for a single owner with 20-30 horses.  Racing thrives there due to infusion of money from wealthy owners and businesses who want to promote their products and services to racing fans while networking with other individuals and businesses who have the same interests.  I'll continue to look for ways for everybody in the business to be more successful, and I'll let you know how it goes.

Is it impossible to start a new public race training stable in 2010?

Jere and I have been back in the United States since April 2009.  After being out of the country for so many years we knew it would be tough to get a racing stable started again, but we felt we did a good job of keeping in touch with former and potential new clients while we were gone, and we had a little money in savings to invest in the start-up.  Now it's January 2010 and although we're still in business, we're just barely able to pay business expenses and we haven't added many new horses to our roster.  Although the most prominent stables charge a minimum of $75/day per horse, we are finding that about $65/day is what the majority of owners are willing to pay.  For more about the costs associated with racing, see http://racehorsetrainers.com/dayrates.htm - this is several years out of date, so keep in mind that costs have risen since then.

We are stabled at Gulfstream Park for the winter and  it's been challenging due to the very high expense for hay and bedding that must be shipped to south florida from northern states, plus the unexpected flooding of the barn area in December.  Despite this it's been an overall good experience so far.   The racetrack has drawn a huge crowd every race day, and the dirt and turf courses are in excellent shape. 

We have a photo gallery in Jere's web site that's labeled "kentucky gallery" but I'm adding the photos from Florida there as well.  I also started a YouTube channel and I'll be adding videos about our racing experiences here at Gulfstream soon.  You can click on the link to our YouTube channel from Jere's web site at http://www.jrsmithjr.com/ - please visit the site and send us an email or give Jere a call anytime. 

If you are an owner, trainer or other industry professional we invite your comments about the current economics of the racing business.

Changes in racing since 2006

So much has happened since I created this blog in 2006 that I felt I should ask everyone to share their views of how racing has changed in the US in the last couple years.

I can think of several areas of the business that have changed drastically,

1. costs have gone way up for nearly everything - feed, fuel, labor.

2. medication rules, track surfaces, public attention to catastrophic injuries.

3. globalization - influence of Sheik Mohammed of Dubai for instance, US horses traveling abroad to race, and import/export of racing stock to/from the US.

4. racehorse retirement - closing of slaughterhouses in the US has focused attention on this subject.

5. addition of casino style gambling at many US tracks.

I was reading some of the old posts about the cost of owning a racehorse and I wanted to say that from 2006-2008 the costs have all certainly gone up. A $75/day rate for training doesn't seem as high as it did a couple years ago, due to the dramatic increase in the cost of doing business.

women jockeys

? Why aren't there more women jockeys?


Women jockeys don't seem to last very long at the top levels, Julie Krone is the last one that I remember and she is now retired, but there are a few around, mostly at smaller tracks. It's still a man's world at the track, you have to be a tough woman to make it in any job around the racetrack, and a woman jockey has to be tough as nails.

What I notice about women riders is that since they can't and wouldn't be inclined to try to use muscle to get a horse to do what they want, they find a way to control horses with finesse instead. I think this makes for a better racehorse and usually also a more physically sound racehorse, because the horses don't use the wrong energy fighting their rider. There are many female exercise riders, at least in Kentucky. Being an exercise rider is still a hard life though for a man or a woman.

trainers don't seem to want "green" owners

? It seems like many trainers don't want to spend time with first time owners, I've been brushed off quite a few times when approaching a potential trainer that I'd like to work with.


You should understand that trainers are constantly approached by people who want to get involved but can't or won't put up the funds necessary to get started, and as a result trainers are mostly a cynical bunch I'd say. When they first meet you they have to figure out if you really have the money needed to get started, and that takes a fairly extensive question and answer session to determine. A lot of trainers just don't want to spend the time. So they brush off the average joe owner and concentrate only on acquiring wealthy owners as clients. I think it's important for a trainer to have owners at all levels, because I think the spoiled trainers with owners that pay bills without even looking at them tend to get lazy. Also it's silly for trainers to compete against each other for the limited pool of wealthy owners. It's important to bring new owners into the business at all levels.

how to become a trainer

? Please give me any information about how to take courses to become a race horse trainer. I live in Houston Texas.



The Texas Horsemen's Partnership at http://www.texashorsemen.com can give you some information, or the Texas Racing Commission at 8505 Cross Park Drive, Suite 110, Austin, TX 78754 (512) 833-6699. Please let me know if you have problems getting the information you need or contacting these organizations. They should have some kind of information package to send you that will explain the requirements for getting your trainer license.

In general there are not "courses" for learning how to become a trainer, most trainers work for another trainer starting at the bottom level job (hotwalker or groom) and working up to assistant trainer. Then you take the "trainer test" in the state where you wish to train when you feel that you are capable. If you already know horses and good horsemanship in general but you are not familiar with racing, you could possibly achieve this goal within several years, about the time it would take to get a university degree.

what to expect if I claim a horse

? If I tell my trainer to find me a horse to claim, how much involvement should I expect to have in that process?


It's a good idea to tell a trainer who will claim a horse for you that you want to go over the horse's past performances before making the final decision. You can ask him to fax the page of the daily racing form to you or you can ask the horse's name and which race he's entered in and look it up at drf.com or equibase.com. Then the trainer can go over the horse's chart with you and tell you why he'd like to claim that horse. Also ask the trainer what he knows about the horse, has he seen it in person, does it look sound, has he seen it race or train before, etc.

Horses are entered for a race only 2 days in advance generally so you may only have 1 day notice if you want to be there when the claim is put in. Also keep in mind that more than one owner/trainer could try to claim the same horse in the same race. When that happens they draw names to see who gets the horse!

Also you and the trainer may decide that a particular horse looks good on paper only to find that he looks terrible in the paddock before the race. So you could make the trip only to come up empty. Sometimes it takes several tries to successfully claim a horse, especially at Keeneland and Churchill where there are many people trying to claim horses.

If your trainer has a horse that is already racing that needs an additional partner, this is an option to consider. If he has such a horse he should fax you the pp's (or email them) and go over it with you. Or if it's an unraced horse, he should send you photos, full pedigree, description of it's training history and readiness for a race, and why he thinks the horse will be a winner and good investment.

Recoup your investment

? How soon will a horse make back its money in the terms of original investment or cost of horse?


This totally depends on whether you have a very knowledgable person pick the horse that can make up it's cost quickly - not an easy task. No guarantee you will make any money at all back on your original investment. Worst case scenario is that a horse is injured soon after you acquire it and requires a lot of vet care and time to recover. In that case you will likely take a loss. I'd say the chance of breaking even in 6 months is about 50%, in my mind the chance of breaking even in 1 month is about 5-10%. I would advise to plan on not breaking even, that way if you do make a little profit, it's a bonus.

The goal is to pay for the horse's expenses so you can enjoy yourself without worrying about how much it costs. And it's the same as going to the track to bet or going to a casino - more fun when you make a little money or come out with as much money as you went in with.

the owner's license

? Should I get a state or multi state license and where do I get those? Also what about taxes?


Your trainer would be the one to direct you on getting your license, so if you haven't got a trainer yet you need to do that first, and your accountant should advise you on taxes. You can also go to http://www.arci.com/license.htm for info about the owner's license, and the National Racing Compact web site at www.racinglicense.com for info on the multi state license - it's $225 plus $100 for KY, $25 for LA, $70 for IL, $40 for FL, for example.

If you don't use an accountant for your taxes, ask your trainer to recommend one who understands the tax rules on racing activities, you won't have to worry too much about that until it's time to file but wouldn't hurt to talk to an accountant to ask what the tax implications will be. Taxes and deductions on racing ventures vary from state to state.

How to find out about a horse's bloodlines

? How can I find out about the bloodlines of a thoroughbred? I entered a raffle to win a 2 year old filly, I know her name and her sire and dam, but would like a more detailed pedigree. Also if I win the horse how can I get more information about her background and training, and how do I proceed after that?


You can go to www.equineline.com and get a pedigree report using a credit card. If you win the horse, ask the raffle organizers for contact info for whoever had the filly before the raffle, so you or your trainer can ask about the background of the filly. Probably if you win there will be no problem getting all the info you need on the filly, and there will likely be plenty of trainers around offering their services to help you with the horse. Your trainer can arrange to transport the horse, if you don't have a trainer lined up then definately do that first. The horse will come with the original registration papers which include a basic pedigree. The horse's papers are required to be on file at the racetrack where the horse will run, so generally the trainer gets the papers along with the horse when the horse is delivered, and they submit those papers to the racetrack secretary. The racing secretary keeps the papers on file until the horse is shipped to another track. I could go on and on but I'll stop there.

can you make a living in horseracing

? I'm doing a report on horse racing for a college business class. My question for you is can you make money? I see some horses for sale for $1500, are they competitive? How much money would I need upfront to start? Can I make a living doing this?


- The short answer is it's rare for a $1500 horse to be competitive at a high enough level to make any profit and it's pretty rare that someone can make a living at horse racing alone. The amount of money needed up front is dependent on where you race, costs vary by track and state. One thing is fairly certain, the cost of the horse itself is usually less than the cost of maintaining the horse.

In my area, Kentucky, to be competitive you would need a horse that could compete at about the $10,000 claiming level, and generally you would have to pay at least $10,000 for a horse that is ready immediately to compete at that level. Costs for training and maintenance of the horse could be as much as $2000-$3000 per month. A sound, fit horse could run about every 3-6 weeks and may be able to make back his expenses in purse money in Kentucky if he always finishes 1st-3rd, but a horse that consistent is rare, and he can't run all year long every month, breaks are inevitable.

Owners and trainers who make money race at the highest levels where the purses are highest, $50,000 and up, but it's expensive to acquire a horse that can race at that level. Some owners and trainers who make a profit take the opportunity to sell a horse that they acquired inexpensively and developed into a much more valuable racehorse. For instance if you claim a horse for $5000 and move him up the claiming ranks to the $20,000 level in just a couple starts, then he'll hopefully be claimed from you for $20,000 in a race that you win, so you get a profitable price for your horse plus the winner's share of the purse. This scenario is NOT a common occurance so the opportunity for profit is really pretty rare.

That being said, I believe that a lot of wealthy owners do benefit from some tax advantages when they buy racehorses and end up taking a loss, but there are a lot of rules about what qualifies as a tax deduction or other tax advantage and I am not at all qualified to speak about that.

As far as breeding horses to race or sell as a career, it's very difficult to make a profit. I believe the successful breeders are creative and diversified, and often have capital investment from outside sources to keep the business going.

This also applies to trainers - the profitable ones are creative about their business, for instance not afraid to own a few horses themselves or in partnership with owners, enabling them to earn more purse money when the horse wins and enabling them to sell the horse when it's value is at it's highest level. Many trainers also offer farm lay-up and shipping services in order to make more money themselves rather than using outside services.

How are jockeys assigned

? It seems to me that the majority of races at least at Fairmount use mulitple jockeys. That is to say that when you look at the program guide at any given horse and check past performance and races, you can see that different jockeys are used. Is this typical? Isn't it better to have only one or two available jockeys to ride your horse during any race?

How are jockeys assigned and can a request for a given jockey be made? Does trainer and owner have any say so in this area?


- Sometimes the first jockey you pick for a horse ends up not getting along with the horse, it's best to let your trainer evaluate the jockey's ride on the horse and decide whether to stick with that jockey or use another. Also you might not always be able to get the same jockey since he may have committed to ride another horse, in that case you have to pick another. Your trainer should always go over the race with you after it's over and explain everything that is happening in the race. Over time you will be able to see little things that happen in a race by yourself. When a trainer enters a horse he names a jockey to ride. Usually he informs the jockey's agent in advance to make sure the jockey will be available, and at that time the agent makes a verbal commitment to the trainer to let his jockey ride the horse.

What does maintenance and training cost

? The more I research my opportunities the more confused I become and determined as well This is information taken from a website and I wonder how exact it is.

from West Point Thoroughbreds (this is from 2006) -

>>
What does my initial investment cover?

Your initial investment covers the cost of the horse as well as all training expenses, fees, supplies, and mortality insurance through December 31st, of the horse's two-year-old year. From the time of your investment through the end of the two-year-old year you will not incur any further expenditures. West Point Thoroughbreds sells 10 percent units in each horse. The minimum buy in to a horse is 5 percent.

What does maintenance and training cost per quarter?

Costs for a horse in training at the track break down in the following manner (all figures are approximate):
Trainer - $75 a day, approximately $6-7k per quarter
Vet - $500 a month, approximately $1,500 a quarter
Blacksmith - $130 a month, approximately $300-400 a quarter
Stable Supplies - $100 a month, approximately $300 a quarter
Vanning - $200 a month, approximately $600 a quarter
Medication - $300 a month, approximately $900 a quarter. West Point Thoroughbreds places its horses on gastroguard to prevent and treat stomach ulcers as well as EPM medication.
Management costs - $500 a month, or $1500 a quarter. WHAT EXACTLY IS THIS EXPENSE IF I WOULD BE A SOLE OWNER OR PARTNER?
On average, the cost for a horse in training will be between $11,000-12,000 to cover all training, maintenance, and management costs. However, most horses do not spend the entire year in training.
A cost of approximately $40,000 per horse per year can be assumed.
Besides the initial expenditure and the training and maintenance fees, are there any other costs involved?

The only other fee is for mortality insurance (covered by initial expenditure during two-year-old year), which is charged annually and is 4.9% of the purchase price of the horse (not the syndication price). For example - if a filly is purchased at auction for $130,000 the annual fee for mortality insurance to the partnership would be $6,370. Therefore the annual cost for a person with a 10% stake in the partnership would be $637. If there is a major surgery the partnership is covered up to $1000, the partnership will be responsible for anything additional

Initial Expenditure - $34,000 Training and Maintenance – For each year thereafter approximately $4,400 to $4,800 (if at the track the entire year)

Purse Distribution

Purses earned at the racetrack are typically distributed as such:
First place receives 60% of the total purse
Second place receives 20% of the total purse
Third place receives 10% of the total purse
Fourth place receives 6% of the total purse
Fifth place receives 4% of the total purse
Per industry standards, trainers receive ten percent (10%) of any purse earnings. Jockeys receive ten percent (10%) of a winning purse, five percent (5%) of purses earned for finishing second or third, and a flat fee of $60 to $100 per mount for finishing off the board
<<


- In my opinion West Point TBs is a "boutique" partnership group that is aiming for high priced horses and owners with deep pockets. All their numbers are high because they use the most expensive trainers and they sell shares based on the idea that everything is high end. To me I can't see paying a trainer $75/day in 2006, very high. Vet bills could be $500 but the horse better have something wrong for it to be that much, for routine vet work that is ridiculous. Blacksmith could be $130 but depends on which blacksmith you use and if the horse needs special shoes, that is a tad high to me. Most trainers don't charge extra for everyday horse supplies like buckets, lead ropes, cooling out blankets, etc. But if he needs a special type of equipment that can't be reused on another horse, such as a special bit or saddle pad, then you might get charged for that. Routine medication/vitamins shouldn't cost $300/month but I don't blame them for estimating high that way if it's less then the owners are pleased. Most partnerships don't charge a management fee, especially if it's just 2 or 3 people going in together on a horse. Most trainers will divide the bills up themselves and bill each owner for their share without any "management fee".

I'd say the cost to have a horse in training should be more like $2500/month or $30,000/year and it could easily be less since your horse may get a break from the track for a couple months here and there, layup at a farm is typically about $25/day, and if your horse is claimed then it will take a while to find a new horse, so you'll have breaks in your bills during that time also.

income after expenses

? What tracks / state would you highly recommend? You mentioned Church Hill Downs among possible tracks and that threw me as I always felt those tracks and horses were out of my range of possibility at this time. In one of your emails you also mentioned Turfway Park. If there are trainers who have partnership possibilities in the 10K - 30K range that may work I have not seen this type of claiming race at Fairmount. Highest claiming race I have seen is about 4,200 - 5,000 You have convinced me that looking for a higher quality horse even though more expensive would yield better returns at tracks other than Fairmount.

What do you feel the potential would be as far as the horse and its ability to provide income after expenses? As an estimate, can you break down the cost for trainer, jockey, vets, etc?


- I would guess that expenses are much the same for both Illinois and Kentucky. I mentioned in the last post the page to look at the breakdown of the trainer's "day rate", with farrier, vet, shipping and some other small expenses on top of that. These extra expenses can vary greatly depending on the horse you end up with, which is why it's important to have a good horseman pick a horse out that hopefully will not have too many "extra" expenses, or if he does have special needs such as custom farrier work or special vet care, he is a good enough horse to make up his expenses in purses. Since expenses can vary, that's another good reason to have some reliable partners to share expenses, that way nobody is overwhelmed if an unusual expense arises.

Whatever you do, insure any horse you claim or buy with mortality or loss of use insurance. A lot of people don't know but you can call an equine insurance company right before a race that you plan to claim a particular horse from, on your cell from the track when the horses are in the paddock if necessary, give the company the horse's details, and they will cover the horse in the race that you claim him out of. When you claim a horse you own him from the time the gates open on that race you claim him from, so if he should break down during the race, you would take the loss. If you have insurance before the race you will be covered for the full claiming price. The company that I have used in the past to cover a horse I plan to claim is Independent Equine Agents, I believe a search will turn up their web site.

Most tracks pay purse money through 5th place - 1st place gets 60%, 2nd gets 20%, 3rd 10%, 4th 5% and 5th 5% and occasionally they break it down even further and pay through more places so every horse gets something, depends on the track. There is no entry fee generally unless it's a stakes race.

I think what happens is say the 1st place horse wins his 60% of the purse. The track takes 10% of that 60% and puts it in the trainer's "horseman's account" at that track, and takes another 10% of the 60% and puts it in the jockey's "horseman's account", and the remainder goes into the owner's "horseman's account". So the money sits there in the horseman's account until you go to the "horseman's bookkeeper" at the track and ask for a check. So as an owner or partnership you can leave your money sitting there indefinately until it's needed to pay for expenses or to use for claiming the next horse - you can use your horseman's account funds to pay for a horse you claim at that track.

Similarly if someone claims your horse the track puts the money paid for your horse directly in your horseman's account. A lot of owners just keep turning that money around constantly in the quest to increase the funds by claiming, winning, and possibly losing the horse to another claim but making money in the process to claim the next one (this is Jere's specialty:)

cost analysis

? Splitting the cost of training and boarding .... Is there some sort of guideline as to those expenses?

- There is a cost analysis for racehorse owners at http://www.racehorsetrainers.com that was done a few years ago, but you can get a better idea of where the money goes. I will guess an competent midwest trainer at the track will have a "day rate" of $60-$65, or about $1800-$2000 per month. So with 3 partners figure at least $600-$700/month for expenses. Farrier, vet, shipping, and some other expenses could be extra on top of that. This is why it's a good idea to get a horse that can run hopefully about a month after you get him - to try to keep some money coming back in instead of watching it all go out for a long time before the horse has a chance to race.

update 2011: racehorsetrainers.com has a lot of other good general info for owners and has been updated in 2011, including the article with the expense breakdown for the day rate at http://racehorsetrainers.com/wordpress/article/do-you-know-where-your-day-rate-money-goes/ - amy

how and when to obtain a throughbred

? The biggest question now is how and when to obtain a throughbred. That answer seems like it may come from a trainer but I do wonder how one can get a trainer without having a horse up front, and if trainers are willing to search for a horse on my behalf. For example, should I find a trainer that I wish to work with out of Arlington, would they be willing to go to Keeneland to obtain a horse?

- I'd say most trainers would rather start a relationship with an owner by helping the owner claim or purchase an appropriate horse rather than getting a horse that someone else picked out that may not be suited for a profitable level of racing. And yes many trainers from your part of the country will be at Keeneland to buy horses this month, but the Keeneland Sept sale is Yearlings, so they are a year away from racing (or more). Probably best to try to claim a horse or buy a horse privately that is ready to run. Most trainers have owners that are always willing to go in as partners on a new horse or who are looking for a partner on a horse they already own (to help share expenses).

Why run a horse in a cheap claiming race

? Why would someone want to run their horse in a claiming race knowing that there may be an individual ( Like me ) or a trainer who may claim him?

Can a throughbred be purchased any time of the year from Keeneland?


- You would run a horse in a cheap claiming race even though it might get claimed because you have a chance to win the race and get the winner's share of the purse, plus the claiming price, thus likely making a very nice profit. Keeneland and Fasig Tipton have sales throughout the year, there is one every few months. But again you need your trainer to advise you on whether to claim, purchase privately, or at auction. Their recommendations may depend on where and when you will be racing the horse, and how much money you are willing to spend on a horse.

Remember it costs as much to take care of a cheap horse as a more expensive one, the real expense is the daily care and training. With several partners a new owner can put in $5000 initially and get a pretty nice quality horse, plus split the costs of training and board.

price levels for thoroughbreds

? To race at Arlington, Hawthorne, Hoosier Park, Fairmount Park and other grades of tracks, would I be competitive with a $5,000 - $15,000 horse? Is it also possible that such a horse may be competitive at bigger tracks and stake races? What type of horse could I expect to obtain at the 5K, 10K, 20K level?

You mentioned a 2 yr old in training. (Never raced before?) Are they readily available? I thought I have seen 2 yr olds already racing at Fairmount.


- In TB racing claimers are divided up by quality/ability into price levels, so a $5000 claimer would have less ability than a $10k or $15k in theory but a good horseman can find a $5k claimer that may be able to move up to $10k or more, however it would be the 1 in a thousands horse that runs for $5k claiming and then moves up to the stakes level. It's pretty rare for a $5k claimer to move up to $10k or $15k UNLESS the horse moves from a tougher track like Churchill or Keeneland where he ran for $5k to a track that has less quality horses running every day, like Fairmount or Hoosier Park.

Sometimes you can get a $5k horse at Churchill and run him at a higher level at an "easier" track like Fairmount, but you must have a really astute horseman to pick the right horse if they are to move up in claiming level. The other part of the equation is the purse money - generally a bigger purse for $5k claimers at Churchill than for $10k claimers at Fairmount so even if you win the higher level at Fairmount you probably won't make as much money as you would running for $5k at Churchill.

The problem with claiming a $5k horse at Churchill is there aren't many races to run him in (if they even have $5k races, sometimes the "bottom" is $7500), most races are for higher level horses, and trainers stabled at Churchill are discouraged from claiming a horse and promptly running back at another track because that takes away from full fields at Churchill. For that reason most trainers wait until the end of a meet to claim a horse, good idea to spot horses and watch them run once, wait for them to be entered back near the end of the meet and then take him. You could find something to claim at Turfway or Keeneland for $5-$15k and then run back at the Churchill fall meet. Better to get with about 3 partners and you each put up $5k to claim a $15-20k horse.

2yos in training are readily available but more often than not you pay more than the horse ends up being worth if it hasn't raced yet because you have no idea of it's true ability. 2yos are racing but it's highly unlikely you'd find good ones racing for a claiming price under about $30k. Trainers and owners tend to enter 2yos at a higher level than they should be to find out their ability before dropping them down to where they belong.

naming a horse

? If a horse is purchased at a claiming race, is it possible that I would have the ability to rename the horse? Since the beginning of my hopes and dream of having my own throughbred, I have had a name that I would very much like to give my horse.

Also, it appears to me that there are other breeds running in the races such as Quarter Horses, is this correct or am I seeing other types of throughbreds?


- You can only name or rename a horse if it has not yet raced, so that means a weanling, yearling or two year old that you buy privately or at auction.

It's fun to speculate on a young horse that hasn't raced yet, but also very risky because you don't know it's ability yet and young horses tend to have physical problems along the way that hold up training and cost the owners in time and vet bills. There is no guarantee that a young horse will ever make the races at all.

It's also risky to claim a horse but I would recommend starting with a cheap claimer (or inexpensive 2 year old in training) and wait on the horse that you will name yourself until after you have learned the ropes a bit. A horse that is already racing or at least has shown some kind of form on the track in training will give you some confidence of it's ability.

If you want your own horse, your trusted trainer can certainly find you a young one that is within your budget that you can name and follow through their road to the races. It's important that you tell your trainer what your budget is upfront because they can present you with horses priced from $5000 up to $100,000 or more.

Quarter horse racing looks fun to me also but I don't know much about it. I do believe that all the things I've told you apply to other breeds as well as thoroughbreds. I recommend thoroughbreds because the return on investment is best with them in my opinion.

buying a horse

? Amy, what do you know about Keeneland?

- All the trainers I know run horses at Keeneland although they aren't based there - it's a pain when Keeneland has to take over so many of the barns to accomodate horses entered in their huge sales, making training stables move their horses around, so not too many trainers are actually based there.

It's highly advisable to have a very experienced horseman help you choose a horse - to claim, buy privately, or at auction. You can get a bargain at Keeneland or Fasig Tipton but it's never a sure thing, you must have someone who knows the people involved with the horse, knows what to look for in a horse, knows how to spot problems, and knows what a horse should be worth.