A Thoroughbred can cost anywhere from a few bucks to upward of $10 million, says
Malcolm Commer, an equine economist at the University of Maryland. The nation’s most prestigious horse auctions are held at Keeneland Association in Lexington, Ky. At its September 2003 sale of yearlings, 2,969 horses sold for an average of $92,329 each. The highest price paid was $3.8 million, and 27 horses went for $1 million or more.
The highest profile buyers at Keeneland sales are John Magnier and Michael Tabor of Ireland and Sheik Mohammad bin Rasheed al Maktoum of the United Arab Emirates royal family. Regular buyers also include Schwartz, pharmaceutical magnate Eugene Melnyk, NetJets CEO Richard Santulli, John Ammerman, who is the former chair of Mattel Toys Co., and G. Watts Humphrey, who sits on the Federal Reserve Board.
No matter what you pay, your ultimate goal as a buyer is to find a horse that will win the largest possible share of the combined $1 billion racing purses nationwide, then shoot up in value for breeding purposes. The nation’s most successful stallion commands $500,000 a breeding session, and can do more than 100 sessions a year. More typical stud fees are $5,000 to $20,000 a session.
Your horse’s purchase price is just the beginning where costs are concerned. Plan to pay $35 to $100 a day for training, depending on where your horse is being trained and by whom. Vet charges run $150 to $500 a month for a horse in training. Shoeing can cost $100 to $400 a month. If your horse is traveling to attend races, transportation can total tens of thousands a year. Commer recently transported a horse to England and back for $16,000. There are also jockey fees, which are typically 10 percent of what a horse wins. In addition to their standard fee, trainers also take a percentage of a horse’s earnings.
Entering your horse in the important races also carries a premium. Top-end races have both nomination fees (so that your horse is eligible to run) and entry fees (if you choose to enter the horse). These fees vary depending on how early you pay them. For a top race with a purse of $1 million, you could pay anywhere from $30,000 to upward of $100,000.
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