GALLOPERS NEWS

 18.11.11 Race Horse Owners Require Large Wallets
 

..... A research study carried out by the University Of Melbourne Faculty Of Veterinary Science & published in the Australian Veterinary Journal has produced some amazing statistics.

All of us that have owned & raced thoroughbreds are fully aware of the costs, both in purchase & on going upkeep of the horses. And most of us understand it is extremely difficult, if not impossible to find a horse that pays his way, let alone show a profit, let alone become a champion of the Australian turf.

This study set out to describe the association between the purchase price of a race horse & the actual racing performance as a 2yo & 3yo. Now there is a flaw there for most who are in the game in as much as most horses will race & earn prize money after they are 3yo, in fact some do not even race until they are 4yo. nevertheless, the study did provide plenty of food for thought. Especially considering all the bonuses on offer for 2&3yo racing across the country.

The study was conducted from all yearlings sold in Australia in 2003, & the subsequent racing performance of these yearlings. A flat figure of $40,000 was used for training fees & upkeep of the horses over the two years, which in Gallopers opinion would be around the correct ball park figure. So the physical cost of owning these yearlings would be $40,000 plus the purchase price. The key points from the study were:-

* Of the 2773 yearlings sold in Australian 2003, only 2206 (79.6%) actually started in a race
* The average number of race starts for the 2206 was 6
* The mean prize money earned was $24,240
* 1711 (61,5%) earned prize money over the two years
* 402 (14.4%) earned more than their purchase price (not including the $40k training fees)
* 312 (11.2%) earned more than $40,000
* 142 (5.1%) earned $40k more than their purchase price

Each yearling sold was placed into one of five categories.

1) Under $10,000,
2) $10,000-$20,000
3) $20,000-$50,000
4) $50,000-$100,000
5) Over $100,000

The study found that category (4) was the best bet to redeem the full purchase price plus ongoing training costs however only 7% of category (4) horses achieved this feat. So only 7% were able to break even or make money in the highest percentage bracket.

Category 1) purchasers were the most likely to redeem their purchase price, 24.1%. These percentages decreased as the purchase price increased with category 2) 16.3%, category 3) 12.9%, category 4) 11.2%, with only 6.3% of category 5) purchasers likely to redeem the purchase price of their yearling.

Overall 14.5% of the horses earned back their purchase price while 5.1% won back the purchase price plus the training fees or more.

 5.1% ! Race horse owners know it is rare to find a good horse that pays their way, however a 5% chance is very skinny odds indeed.

So if you are feeling lucky, then fill up your wallets & head out to the 2012 yearling sales & attempt to be one of every 20 purchasers who will break even on a yearling purchase.

Gallopers thanks the University Of Melbourne Faculty of Veterinary Science, & the Australian Veterinary Journal for the information for this article.

Gallopers 18.11.11