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FINANCIAL PLANNING
The Girls Partnership, Champion Old Habits goes wire-to-wire in the 1998 Governor’s Cup Futurity-G1 at Los Alamitos.
© Speedhorse Archives
P PA A R R T T N N E E R R S S H H I I P P S S A A N N D D T T H H E E F F I I N N A A N NC CI I A A L L S SI I D DE E O O F F H H O O R R S S E E R R A AC C I I N N G G
by Cade Peterson, Financial Planning Advisor
hose of you reading my articles are
well aware that horse racing can be an expensive industry to be a part of. I’m rather excited to be writing about this because I am about to partner up on my first racehorse with my dad, Billy. Having been around different race tracks and sales, I have noticed
it’s all said and done, the costs really add
up. With an industry like horse racing, it
is important to account for all the expenses that come with owning a racehorse. Before I made the decision to get in on a horse, I had to break down the expenses that come with it. I have been keeping track of expenses for our ranch, and I have quickly learned that the price of owning a racehorse goes far beyond the initial purchase or breeding, and It is also a game of patience. We are planning to breed one of our broodmares and it will take 3 years before I even see the horse run.
I want to break down monthly expenses
of owning a racehorse and explain how partnerships can be beneficial for someone who is considering owning a racehorse.
AVERAGE PRICE OF A RACE HORSE
As we all know, the average price of a racehorse has increased over the last several years. When you go to a sale, it’s hard to buy a yearling with a good pedigree for less than $40,000. Inflation has certainly affected the
the cost of raising a foal quite a bit more expensive, which is one of the reasons why the sale prices have increased so much.
MONTHLY EXPENSES
Inflation hasn’t only affected the price of a horse; it has affected the monthly expenses as well. I have done some research and compiled a few averages for different bills you might have for a horse in training. Training alone costs about $65 per day on average. That equates to just about $2,000 for one month. I’m estimating a monthly vet bill of $1,000, transportation of $250 per month, farrier costs of around $150 per month, and finally, miscellaneous supplements and other expenses of $150 per month. The total monthly cost of owning a racehorse equates to roughly $3,466. You might be surprised to find out that these monthly expenses add up to over $41,000 per year. This is excluding the cost of boarding before you send the horse off to training. As you can see, the expenses really add up. Now imagine you are running 3-4 horses. To make
T
that a person must have some money on the table to even participate. It starts with boarding, stud fees, training bills, vet bills, transportation costs, farrier fees, etc. When
racing industry, especially this last year. From 2021-2022, the consumer price index hit its highest level since 1981 when it increased
8.3 percent. This trickles down and makes
a profit, you’ll need to win some big races or prove out a broodmare or stud. It’s obvious that you must have some money in the game to continue to meet these expenses, or you have
138 SPEEDHORSE April 2023