Page 89 - November_2023

FINANCIAL PLANNING
“My hope for the younger generation is that racing can grow to be more and more popular throughout
my lifetime. I would like to see purse opportunities for Quarter Horse races to continue to rise so the demand can continue to follow the supply.”
the gross sales were $408,054,900 on 2,884 head. As you can see, that is a pretty significant difference. Why exactly, have the valuations
of Quarter Horse and Thoroughbred yearlings been so different? One of the major factors
is the level of prestige that comes with Thoroughbreds. Dating back hundreds of years, Kings and Queens were acquainted
with the Thoroughbred while the Quarter Horse was thought to be strictly used for ranching and roping. The popularity, perceived social status, and recognition, helps to prop
up valuations that people are willing to pay. Higher valuations for yearlings facilitate higher stud fees demanded by stallion farms. Let’s look at the top five stud fees on both sides of the spectrum to further illustrate this disparity (see chart on previous page).
Quarter Horse values are on the rise,
but there is still a lot of ground to make
up to get to the level of Thoroughbreds. People are willing to pay the stud fees on the Thoroughbred side due to the expansive purse opportunity and higher demand. Investing $250k into a stud fee seems almost ridiculous, but to a Thoroughbred breeder, those fees are more easily accepted because prices of their offspring support them. I recently spoke with a well-known trainer, and he told me that maiden races in Kentucky and New York offer purses of $120,000. He also mentioned that Thoroughbred races are being run in just about every state and in nearly all developed countries. Quarter Horses on the other hand are primarily run in a handful of states here in the U.S. with some exposure in Mexico and Canada.
POPULARITY AND APPENDIX FOALS
The economic impact of Quarter Horse racing is growing. The margin of potential profit between Thoroughbreds and Quarter Horses seems to be slowly narrowing. Some of the purses in the Quarter Horse industry have become really attractive. States such as New Mexico, Oklahoma, Louisiana, and Texas are witnessing profound purse increases, which has provided a significant burst to horse values. Race secretaries may need to consider raising the claiming levels to get more in line with market prices. One could argue that a good Quarter Horse broodmare is more valuable than a Thoroughbred broodmare. The embryo transfer allows for multiple foals each year whereas the Thoroughbred mares are held to only one.
Interestingly enough Thoroughbreds have actually made a significant mark on the Quarter Horse industry. There are several famous Quarter Horses that were the result of cross breeding. The first one that comes to mind is Special Effort, who was sired by the Thoroughbred Raise Your Glass. Special Effort is still the only Triple Crown winner in the Quarter Horse industry and was inducted into the Quarter Horse Hall of Fame
in 2008. Dash For Cash is in this conversation
as well. His mother was a Thoroughbred herself named Find A Buyer. Dash For Cash, of course, left a legacy with his career as a sire. Jess Good Candy belongs on the list of great Quarter Horses produced by a Thoroughbred breeding. Jess Good Candy is by Good Reason SA, who is by the Thoroughbred Favorite Trick. One of the greatest racehorses and sires of all time is Easy
Jet. He is out of a Thoroughbred mare named
Lena’s Bar, who is by Three Bars. Even two of the studs dominating the Quarter Horse industry right now, Favorite Cartel and Apollitical Jess, were the product of a Thoroughbred crossed with a Quarter Horse. Favorite Trick sired Favorite Cartel and Apollitical Jess’s dam Apollitical Time is by the Thoroughbred Apollo. This makes
me wonder why a cross between each breed is not sought after more than it is. Thoroughbred genetics seem to show up in nearly every dominant Quarter Horse line.
Quarter Horse racing is growing at very
fast pace, but so is Thoroughbred racing. As you all know, there are a lot of yearlings at the sales every year. As the supply goes up, demand needs to follow. I would like to see the Quarter Horse industry equally successful as the Thoroughbred industry. The race officials have done a great job to continue to grow both sides of racing. My hope for the younger generation is that racing can grow to be more and more popular throughout my lifetime. I would like to see purse opportunities for Quarter Horse races to continue to rise so the demand can continue to follow the supply. Horse racing is something that I am very fond of, considering my family has been involved for generations. Thoroughbreds had roughly 30,000 more starters in 2022 than Quarter Horses did according to AQHA and The Jockey Club. I hope we can narrow that gap in the future and create more opportunities around the United States for Quarter Horse racing to attract more people. To see the valuations of Quarter Horse yearlings get on par with Thoroughbreds would be incredible for the industry and I hope to see that happen one day.
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