The Economics of Horse Racing

Horse racing is not known as the "Sport of Kings" for nothing. Owning a race horse has always been traditionally reserved for those who are in the highest rungs of the financial ladder. Depending on pedigree, conformation, age and other market factors a horse could cost anywhere from $40,000 USD to $80,000 USD. And this is just the initial cash outlay. This is why in the last few decades of the sport, aside from the extremely wealthy, those who cannot own a race horse by themselves have formed partnerships or syndicates so they can purchase their own race horses.

Indeed, race horse ownership can be prohibitively expensive. Let's take a closer look at the other expenses that can be incurred from owning and training a Thoroughbred for racing.

Depending on where a horse is trained or who trains the horse, a day rate that covers the cost of feeding, boarding and the trainer's fee could range from $25 to as high as $80 depending on the track you put your horse in. The larger the track, the more expensive the rates are going to be. Add in veterinary care and farrier (horseshoer) fees and that will cost you an average of $200 monthly. And it's not just humans who get their occasional dose of rest and relaxation. Equines need them too, and this can up your cost to about $20 per day.

Factor in breaking in expenses, mortality insurance that can cost a little over $1,000, a Liability & Workers Compensation Insurance, vanning and stakes entry fees, you can understand why keeping a yearling and training it to race at a mid-level race track could run close to $20,000. For major race tracks all over North America, these initial annual costs could run to as high as $35,000. If you're training a regular race horse, the cost could rise up substantially as well.

Of course, the fees that you pay from the purse earnings after your horse has won a race are entirely another set of expenses all together.

Indeed, owning a racehorse really costs money. It is no wonder then, that horse racing is viewed as an elite sport.

View the original article here