What Influences the Price of a Racecourse?
Buying a racehorse needs more than just the capital as you also need to know the risks and limitations upon buying one, especially with thoroughbreds. More than purchasing, you also have to break into the ownership of having a racehorse and it takes a lot of planning and research before even paying for your favorite new horse.
In general, some horses ranging from free to steeds can cost $100,000 (and beyond), while some riders can find a healthy trail horse for less than $5,000. Many factors affect a racehorse’s prices, but the most common ones are age, gender, pedigree, black-type, conformation, market factors, and a nomination for restricted races. How much money was earned by the horse’s parents is also a key factor in a horse’s valuation as that’s how the world of horse racing betting works.
The bloodline, or breeding, plays a significant role in horse prices, like Quarter Horse breeds, Paints, and Warmbloods. Like Galileo, the most expensive one, top stallion breeds have had private listing since 2008, but reports suggest that its figure has been almost $700,000 to stud. Meanwhile, the most costly American horse, Tapit, charges a $300,000 fee to stud, making nearly $12.6 million earnings a year. These horses would generally cost higher than the typical breeds.
Thoroughbred horse racing has a category for the highest level competitions called pattern races, graded races, or group races. Including the world’s most iconic races (i.e., Melbourne Cup, Irish Derby, Prix de l’Arc de Triomphe, Breeders’ Cup, Kentucky Derby). Horses that won in these races are exceptional and have determined stud values, referred to as Black-type races. A horse’s price will increase depending on its time and experiences in the show ring, so expect a price increase for any winners.
Nomination or registration for restricted races depends on the meeting’s requirements. Horses qualified under these categories are expensive as they have a better potential for profits. The expected investment return is 521% for the Breeders’ Cup, 590% for the Maryland Million, and 2,590 for a Maryland-bred registrant. However, the horse’s pedigree could also affect the price and returns.
A racehorse price might also depend on the nature of its training and its trainer’s expertise. Expect that the breadth and depth of the training that the horse received will affect the cost. The seller might also conform to the average market price, the health condition, and even the reason for selling. A horse with minor injuries and health issues may come at a significantly minimized price, but you must still have it examined by a veterinarian.
The first factor that majorly affects thoroughbred pricing is the age of the horse. Although the prime age for a horse is typically between seven to fourteen years old, you still must not rule out an older horse as some of them are even more capable and more experienced than the younger ones. Horses approaching and into their 10s typically have much lesser worth, but they might become more effective as a racehorse if they have good breeding and healthy conditions of living and training.
In the middle of a race track, it is hard to distinguish whether a racehorse is a male or female or even a gelding, making people assume that all thoroughbreds are male. However, racehorses can be either mare (female horses) or sire (male horses), where mares competing against male counterparts often win. Male horses can also be more expensive as mares that don’t have the same earning potential. Mares only have an eleven-month gestation period upon retirement. Meanwhile, fillies (female horses aging four years or younger) might be more expensive at some time, especially if they received racehorse training and experiences.
On the other hand, a horse price may decrease or increase depending on the latest market demand and supply. If the seller is in a hurry, you can expect lower horse prices or more bargaining chances. If the horse on sale has been long overdue, its price may decrease over time due to low demands. However, some sellers could have a firm price as they might not mind waiting for the right buyer.
Buying a racehorse depends on your hobby, ambition, and how much your budget is. With the frequently changing market of racehorse online, it is important to know the right valuation for your horse or a horse you want to own.