Tag Archives: horseracing

Facts and figures: Horseracing costs and potential million-dollar profit

For most people, horse racing is an ultimate game of luck—but that’s not entirely true. Anyone in the horseracing business will agree that luck is just a part of the larger equation in balancing risks and returns in this kind of venture.

 

Image source: sportshaze.com

 

So how much does it cost to own and sustain a thoroughbred horse?

 

An average of $45,000 a year should be spent not only to train but to maintain a racehorse, at least in popular horseracing regions like Southern California. Here’s a quick breakdown:

 

  • The biggest expense will be in your horse trainer’s daily rate. For instance, experienced trainers have quoted a $95-$120 salary range. This amount will cover vitamins, supplies, feeding and bedding costs, groomers, exercise riders, and pay the necessary taxes depending on which state you live in.

 

  • On top of your trainer’s day fee, you’ll also have to consider veterinarian bills that can range from two hundred to a thousand dollars. In addition, a healthy horse also needs new shoes put on every four to five weeks and expect a monthly cost of $100-$200.

 

 

  • Lastly, horse owners should also take transportation fees into account and shoulder other expenses for licenses, taxes and insurance. All can vary by state

 

Image source: thebusinessadvices.com

 

Racehorse ownership is relatively expensive so the question that needs to be addressed now is: is it all worth it? Well, horseracing success stories are rare but they happen. For instance, the 2017 Kentucky Derby Purse reached an approximately $2M dollars. Normally, a winning horse takes 60% of the purse for a first place, second place is 20%, and the third spot gives you 12%.