So, you are looking to buy your first racehorse? I don’t blame you. Trust me, you are not the only one that have been bitten by that horse racing bug. The sport gets under your skin, and you cannot get enough of it.
But instead of watching other people’s horses, I know that we’ve all thought about owning our racehorse. Is this a good idea?
Well, you already know that in business, there are no right and wrong answers. It all depends on multiple factors, and the biggest one is your goals, desires, and passion. If you are buying a racehorse just for the sake of making money or getting a piece of those million-dollar prize purses you see on TV, you better forget about going on this journey!
Yes, racehorses can win a lot of money, but that’s only the bright side of things. Many people don’t see the struggles and expenses that go into taking care of a horse. It will put a big hole in your wallet.
So, before you run to the nearest horse racing auction, here are some things to consider.
What Does It Really Cost to Own a Racehorse?
Buying a racehorse is like buying a yacht—your financial nightmares don’t stop when you pay for the boat. There are many other (and quite significant) costs beyond the initial purchase, such as:
Purchase Price
Depending on the breed, pedigree, and age, you could spend anywhere from $15,000 to $300,000 just to get your foot in the stable door. There are beginner, mid-level, and high-level horses. Obviously, contenders at huge horse racing events like the Breeders’ Cup have the highest-quality horses.
Click here to check out the Breeders’ contenders:
https://www.twinspires.com/breeders-cup/contenders
But, as a beginner, I’d try to go for the cheapest option. Yes, you might not win a lot of Grade 1 races, but at least you have some time to learn the business without taking a big risk.
Training Costs
Training a horse isn’t like a dog where you throw it a stick and expect the horse to run. You need a professional to do the job, and this costs money. Trainers go around $2,500 to $6,500 per month, and this doesn’t include any special treatments.
Veterinary Care
One of the most important things when having a horse is keeping them healthy, which is why regular vet check-ups, vaccinations, and unexpected medical needs can put a huge dent in your wallet. But on average, expect to pay anywhere from $600 to $1,200 every month. Of course, this does not include any big unexpected medical emergencies, which can escalate the costs very quickly.
Insurance and Miscellaneous Fees
Insurance for your horse (yes, that’s a thing) could cost about $10,000 annually. Add in entry fees for races, jockey fees, and supplements, and you’ll see why this is not your average hobby.
So, to sum up, owning a racehorse isn’t cheap at ALL. You’re looking at several thousand dollars a month just to keep the horse healthy and racing. And the best thing? Nobody guarantees that your horse will make any money in races, so there is a big risk.
The Risks: More Than Just a Bad Day at the Track
Owning a racehorse is like playing a game where the rules keep changing, and not always in your favor.
- Uncertain Returns: There are no guarantees. Even with the best training and care, a racehorse’s performance is influenced by myriad factors: health, competition, and even the weather on race day. The reality? You might never see a return on your investment.
- High Operational Costs: All those expenses? They can easily exceed any winnings. Unless your horse turns out to be the next Secretariat, it might be hard to break even, let alone make a profit.
- Inherent Risks: Racehorses are athletes, and like any athlete, they can get injured. An injury or illness can not only end a racing career but also lead to significant financial losses.
- Long-Term Commitment: This is not a “flip it for profit” deal. Racehorse ownership is a long-term commitment that could span years, with no guarantee of success.
But What About the Upsides?
Yes, taking care of a horse might be very difficult, but there are some positives into this journey (not all of them are about money).
- Community and Networking: You get to meet and connect with like-minded people. It’s a social sport with a passionate following, and the camaraderie can be worth more than gold (though actual gold wouldn’t hurt).
- Love of the Sport: For many, it’s not just about the money. The thrill of watching your own horse race, the excitement of being a part of the sport, and the sheer joy of working with these magnificent animals can make it all worthwhile.
- Educational Value: There’s a lot to learn, from horse management to understanding race tactics. Even if your horse never wins a race, the experience itself can be incredibly enriching
Is It Worth It?
So, is buying a racehorse a good investment? It depends on what you’re after. If you’re looking for a guaranteed financial return, you might want to look elsewhere.
But if you have a passion for the sport, enjoy the social aspects, and can afford the costs, racehorse ownership could be a thrilling, albeit risky, adventure. Just go in with your eyes wide open, your wallet ready, and maybe a lucky horseshoe in your pocket.