Thoroughbred Racing Stables

Thoroughbred Racing Stables: The Economics of Racing

A Thoroughbred's value is determined by its ability to perform and a thoroughbred racing stable is no different. The following is an estimate of various operating expenses that an owner will be incurring on an ongoing basis.

These expenses can annually amount to a substantial portion of the initial cost of a Thoroughbred racing stable and in some instances the annual cost of maintaining and racing a horse can exceed the initial cost of the horse.


Big Pots, Reasonable Expenses, Pa and WV.

Costs will vary depending on where the horse is trained. Training fees of $35-50 per day are not uncommon at the tracks in Pa.and WV


These rates cover feed and boarding, as well as the trainer's professional fee. They do not include blacksmith and veterinary care, which cost an additional $100-$350 per month.


The following gives an idea of what to expect on a monthly basis if it is decided to race at a medium cost track like Penn National or Charlestown.


* Training (1 month @ $40/day) $ 1,200
* Veterinary (routine & preventive - no major illness or injury) $ 200
* Blacksmith $ 100
* Transportation $ 200


Total $1,700 per month


These estimates could change substantially depending on the location of the horse, the success the horse has at the racetrack, the soundness of the horse and other factors out of the Managing Partner's control.


There are certain other expenses a thoroughbred racing stable will incur which are not outlined above because they are expenses, which will usually occur only if the horse win a purse and therefore would be paid by the owner out of purse earnings.


These expenses vary depending on the state, racetrack, and trainer.
The main expenses are as follows:


* Jockey Fees - according to the finish. Usually 10% for First, 5% for Second and Third, $60 for an unplaced mount


* HPBA (Horseman's Group which usually receives 1% of purse earned)


* Backstretch Fund (1% of purse earned)


* Workmen's Compensation fee - according to finish position. In New York unplaced $12; Win 1% of purse earned.


* Trainer's Commission - 10% of all money earned by the horse in addition to the daily training fee


* Barn Commission - gratuity to the help at the barn usually about 2%.