So you're excited. You are ready to start racing. How much does it cost? Putting aside your horse purchase, registration of your horse, your owner's license, and the "fun extras" like the purchase of your own silks for the jockey to wear when he rides your horse, there are ongoing costs that must be considered carefully. While some owners enter the racing game and experience incredible success from the get-go, racing is generally not a short term proposition if you plan to be successful. Arabian horse racing is as thrilling a sport as they come with emotional and financial rewards. But for the welfare of the horses, all owners must be prepared to accept the responsiblities that come with the pursuit of these rewards.
Many variables come into play in the cost of horse racing. If your horse is stabling off track, you may save some in trainer expense but you may also have additional transport expenses. Trainer rates vary, as well as vet and farrier. If you are doing the training yourself, you may save some money. The health and soundness of your horse comes into play as well as his mental readiness. You may want to consider entering a Partnership, which can include partial ownership of just one, or many racehorses at a time. Read more about Partnerships later on this page. Keep in mind that equine investments are legitimate business activities and will be treated as such by the IRS if you handle them properly. Consult with a tax advisor familiar with the horse business.
The trainer's day rate will be your major expense. Day rates for Arabian race trainers in Texas vary from $25 to $45 per day. ($750 to $1350 per month). Stabling on track is most often higher than stabling at a farm. You may find trainers who offer a special lower rate for your horse's initial breaking and pre-race training period. Find out what is included in your training rate. Be cautious of excessively low rates. A racehorse that is well fed, well housed, and well managed through his training process requires a lot of cash outlay from the trainer. Your trainer will also be providing costly equipment and supplies as well as compensating staff. Cutting corners on your training expense may be something you and your horse pay for later.
Veterinary fees can vary as much as trainer day rates. Much of what you may spend on vet expenses depends upon your trainer's habits and the health of your horse. For routine veterinary care, the cost can be less than $100 per month. Some owners have reported vet bills 50% or more of the monthly training bill. It is wise to discuss these issues with your potential trainer. Your philosophy about veterinary care should coincide with your trainer's for a great training relationship and no surprises.
Your horse to be trimmed and re-shod with new racing plates every month to six weeks. Special shoes (bar shoes, mud calks, padding) cost more, as will any patching of cracks in the hoof or corrective shoeing. Approximate your farrier cost from $60 to $120.
Entering a regular race does not cost anything. Stakes races generally do charge a fee-- some will have a nomination fee plus a fee to start. Others only a starting fee. Other big stakes races or futurities with highest purse amounts will have a pay-in schedule for several months to a year prior to the race. Check the stakes rules and nomination schedules.
If you are a do-it-yourself trainer and hauling your horse to the races, you may need some help to lead the horse up to the paddock and to hold him while you saddle. Grooms are usually available in the receiving barn (check with the racing office or receiving barn manager prior to hauling in). The cost of a groom is from $20 to $30, and they will help you after the race with bathing and cooling down your horse. If you are using another person to train for you, your trainer will most likely have his own grooms and the cost may be included in your training price.
If your horse requires a pony horse at the race, which most do in order to escort them to the starting gates, the cost is usually $20 - $30.
You will pay a jockey fee in any type of race. If your horse comes in first, second or third the jockey receives a percentage of your share of the purse instead of a flat fee. For unplaced mounts, generally the jocky mount fee is $40. The Condition Book published by each racetrack will tell you the exact fee schedule.
Remember, when you win a race your trainer will normally charge a 10% commission. Be sure to discuss with your trainer about any other percentage of earnings compensation.
In this sample, the high end describes a winning mount. In the $8,000 race described, winners share (60%) is $4800, offsetting the cost and producing a profit of $995. The low end cost column describes a non-placed mount with no cost offset. Remember, races do pay to the first through fifth place finishers and Accredited Texas Bred horses win additional money. Your estimates may differ considerably, based on your projected expenses and the race purse amount. If you have nominated to stakes races, add in nomination fees and potential winnings. It is highly suggested you prepare your own budget and projections.
Partnerships
Partnerships are a great way to reduce your expenses and multiply your fun. This is one of the most attractive options for new racehorse owners, as many existing partnerships are available with owners and trainers who are very experienced in the business. Some partnerships are available with not just one horse, but multiple horses owned by the same group. You may choose to partner on a horse that is already a champion, or get started in a partnership with a prospect or even a broodmare or stallion.
Communication is the most important part of making a partnership exciting and fulfilling for everyone involved. Meet with your potential partners and especially the managing partner, and find out about the decision making processes surrounding your racehorse. Find out the length of commitment required of you in the partnership, and the role you will play. Find out what plans are in place for retirement of your racehorse and your responsibilities to this horse at this time. Ask for a written contract.
Remember, each partner who has an ownership interest of five percent (5%) or more must be licensed by the Texas Racing Commission for the horse to start in a race. Whether you decide to create your own partnership with friends or join an existing partnership, this can be an exciting journey in racehorse ownership. Check with TABA Breeders and TABA Sponsors as well as our Classifieds section to explore these opportunities.
