Ashwin Reynolds was an avid horseracing punter from Grassy Park, Cape Town South Africa. His dream was to one day own a superstar racehorse that would become a horse of the people. He would study Horse Racing catalogues of Stud Farm Sales, looking at the pedigree of the yearlings that were on sale. In 2017 he identified a Sale in which he believed could produce that superstar for him and decided to allow his trainer Harold Crawford to choose a horse for him. He told Harold that the maximum he would spend was 80 000 South African Rand (approximately 3800 Pound Sterling).
The horse Harold purchased was bought for R55 000, even less than he had envisaged, named the yearling Kommetdieding, and the rest as they say is history. Trained by Harold Crawford and his daughter Michelle Rix, Kommetidieding has now won the historic Durban July and Cape Town Met double, having earned R3.2 Million in prizemoney in the process. It all started with a dream, Ashwin bought the horse and now owns an absolute superstar. The future earnings not only via winning races but also breeding once Kommetdieding has retired, is unlimited.
How do Horse Racing Owners make Money – Even though a successful horse can make a lot of money racing, its real earnings potential might be as a stud. Racehorse owners can make money standing a stallion at stud, selling offspring, and breeders awards. Many horses retire and are used for breeding after completing their racing career.
Racehorse Owner Potential Profits – Racing
The majority of racehorse owners race their horses not only because they love the sport, but also to make money. The purse for each race is set at a certain level for the various grade of races and is determined by the racing authorities in whichever country the race is taking place.
Typically, the winner receives 60% of the entire payout, while second place receives 20%, third receives 10%, fourth receives 5%, fifth receives 3%, and sixth receives 2%. Jockey and training costs are paid from the winnings of the horses.
After the monthly training fees and additional expenditures are deducted, the owner of the horse banks the residual. If a horse is competing in middle to lower-class races, the monthly expenditure would normally be covered by the horse winning a race. However, when a horse competes in and wins Graded races, then the horse owner not only receives the prize money but also has the horses’ stud value increase exponentially.
Racehorse Owner Potential Profits – Breeding
Racehorse owners may profit by standing a stallion at stud, selling progeny, and winning breeders honours. After finishing their racing careers, many horses retire and are utilized for breeding. A successful horse may win a lot of money by winning races, but its true earning potential may be as a stallion. Superstar Galileo was one of the most expensive stallions with his stud price rumoured to be in the hundreds of thousands.
Tapit is the highest-paid stud in the United States. He breeds with approximately one hundred mares every year and his stud fee is $185,000 for 2022. Tapit and Galileo are extraordinary racehorses who command the highest rates as the average stud fee for a skilled stallion with a solid pedigree vary between $2,500 and $10,000.
Racehorse Owner Potential Profits – Pinhooking
Pinhook horses are owned by certain racehorse owners especially the Stud Farms who raise the yearlings from birth. Pinhooking is the business of purchasing and reselling juvenile racehorse prospects. Typically, a person will purchase a yearling or weanling, train the horses, and then sell them for a higher price.
Pinhooking is a frequent procedure in high-end well-bred racehorses. The skill of the Pinhooker is in spotting the foal with the potential to increase in value on account of its scope for physical improvement and how fashionable its pedigree may be. However, there are risks to pinhooking, as there is to any business venture.
Despite the danger of the young horse not developing as expected, or being injured or ill, if a young horse matures well and responds well to training, it is worth much more than it was as a yearling. Buyers perceive a horse’s potential considerably more clearly when it is two years old than when it is one year old.
Owners may profit from the sale of racehorses, some as runners and others as breeding potential. Trainers are often on the market to buy horses for investors and private owners and will scour catalogues and Stud Farms to find “The One”.
Horses that have just retired from racing, particularly mares with strong breeding and racing success, are sought after by breeders. If an owner is not involved in breeding as a business, he or she may choose to sell a horse as a broodmare.
Racehorse Owner Potential Profits – Support Services
Some racehorse owners have farms with amenities available for rent, especially those owners who have paddocks at most Stud Farms that may be utilized to keep horses during the offseason or when a horse is injured or requires a rest.
There will be times during a racing season when there will be multiple races suited to and available for a certain horse. During this time, the trainer will nominate and declare the horse to run relatively frequently across a short period. However, when suitable races are not available for the horse any longer, the horse will be sent to the farm where it was bred to be pampered and enjoy a well-earned rest.
Not every horse can become a Kommetdieding
Not everybody who purchases a horse for such a relatively meagre sum will be fortunate enough to purchase a superstar. Yes, you can earn money as a racehorse owner, but it requires time, chance, and understanding of the racing business.
Many racehorse owners do not profit from their horse racing adventure, but their love of horseracing and the privilege of owning an equine superstar will continue to drive those who don’t initially succeed. As an owner of these majestic equine species, the thrill of seeing your horse reach that winning post in first position is unparalleled.