PURSE DIVISIONS AND COSTS
So, you have purchased a horse and it is ready to race. Now what?
As a new horse owner, you likely have many questions and concerns. How are purse earnings divided and what are the costs associated with racing your horse?
Hopefully, the examples below will give you a better understanding of how it all works, who gets paid and how much. A purse prize of $10,000.00 is being used to illustrate how the percentage split works.
* If your horse places 1st, you receive 50% of the purse ($5000.00).
* If your horse places 2nd, you receive 25% of the purse ($2500.00).
* If your horse places 3rd, you receive 12% of the purse ($1200.00).
* If your horse places 4th, you receive 8% of the purse ($800.00).
* If your horse places 5th, you receive 5% of the purse ($500.00).
A percentage of the winnings comes directly from the purse to the driver (5%) and the trainer (5%).
There are a transportation fee and paddock fee that is NOT deducted from the purse at this time. Those two fees will be applied to your monthly bill, according to the percentage of ownership shares you have invested in the horse.
If your horse places out-of-the-money (6th to 10th), there was no purse money collected, so there are no driver/trainer fees/percentages to be paid out.
HOWEVER, your transportation and paddock fees will still show up on your bill at the end of the month.
*Please note: Your transportation and paddock fee will be determined by how many races your horse has competed in by that month’s end.
There are no fees associated with entering your horse into a race. However, if your horse is STAKES ELIGIBLE and you have been making payments prior to the stakes race on a regular basis, there MAY be a final stake payment due to enter the race.
With the physical demands placed on racehorses, the trainer will work closely with a vet to ensure the horse is at its best. Prior to racing and after a race, the services of a vet may be needed, meaning there will be a fee for services rendered. The vet fees will be applied to your monthly bill, according to the percentage of ownership shares you have invested in the horse.
As new owners ourselves, this venture has been an exciting time for us, but it does come with questions and concerns and it all can be a little overwhelming at times. Hopefully, this article answers some of those questions about one of the many steps we all will be taking together on our road-to-the-races.