"One third of all thoroughbred foals bred for racing never start. More than half of those that do make it to the track, never win a single race."

What does a race horse cost?
Yearlings or young, unraced thoroughbreds are valued based on conformation and pedigree. A thoroughbred's pedigree is examined by looking at the parents and sibling's money earnings and type of races won or placed. A thoroughbred with an athletic, "straight", and well proportioned body and along with excellent pedigree will bring the highest price at sales.
Horses that are racing or older horses are valued based on past performances and their soundness, along with the ability to continue earning. A talented, sound horse with consistent performance may continue to earn money at a high level. A good claiming horse may continue to do well at a lower level, but may change owners often as the horse is bought and sold.

Thoroughbreds may be purchased from auctions, privately or claimed out of races. Prices can range from free to millions of dollars. Typically a claiming level race horse, racing in the mid-atlantic region, can be purchased for $5,000 to $40,000. These figures are based on Maryland claiming prices. Horses racing in allowance and stakes races, demand a higher price and most likely not for sale since they are often earning money and taking their owners to the winner's circle.

The industry today.
Thoroughbred racing in United States and Canada distributed almost a billion dollars in purses in recent years. The betting contributes to the purses, through a percentage of the handle (money bet). The total annual handle in North America is about $18 billion in the past few years. Purses have more than doubled in 15 years , but the number of races has declined. The average purse per race and the average earnings per horse has increased. So this means now one of the best times for owning racehorses ever!

Training fees can range from $35 to over $100 per day depending on the region and track where stabled. The typical rate in Maryland is from $55 to $85 per day. This is the basic daily rate and does not include owner's license, horseshoes, transportation, veterinarian cost and race day expenses. The basic daily rate covers feed, sports supplements, boarding, cleaning stalls, stall bedding, worker's compensation insurance and other training cost. The trainer earns his money off of the 10% he earns from the horse's earnings.

Partnerships

Partnerships are becoming very popular. Thoroughbred partnerships are designed to allow thoroughbred racing ownership opportunities to reach more people beyond the rich and famous. There is a program out there that is affordable to anyone. The best opportunities are claiming partnerships. Some partnerships require investors to buy into a yearling or a 2 year old that is unraced. This is a very risky program and usually is full of more hopes and dreams than actual reality. Beware of programs which require a large initial capital investment with an unproven horse. Crocker Racing Stable Inc. has created the most comprehensive, straight forward plan for making money in a thoroughbred partnership with minimal risk of loss and huge potential for success. Click here to learn more

Sole Ownership

A single investor who may own one or many horses and is responsible for all expenses. Many owners are very successful. These owners are usually very knowledgeable of the business and employ trainers who work closely with them to make careful decisions regarding profitable racing strategies. A good owner and trainer relationship is a must, as with any successful business.

Investment Groups and Corporate Ownership.

Sometimes companies are formed to buy, sell, trade and race thoroughbred horses. These entities are very similar to the partnerships. Basically partnerships may be incorporated and taxed as a business entity or partners can be taxed as sole proprietors if they choose not to operate under a Legal Partnership, Limited Liability Company (LLC) or Corporation.