Gum Tree Stables LLC

A Thoroughbred’s value is determined by its ability to perform in important races (most of which are run at distances from five-eighths to one and one-half miles) and its expected ability to produce other Thoroughbreds successful in these races.

Experts in the Thoroughbred industry evaluate unraced yearlings and Thoroughbred bloodstock based primarily on pedigree and comformation. The pedigree of a Thoroughbred includes the genealogy of the horse and the racing accomplishments of members of the horse’s family based on winnings and placings in stakes races and total purse won. Notable successes by a horse’s forebears in the more competitive stakes races will generally increase the horse’s value. Further, a Thoroughbred with an athletic-looking appearance and generally proportionate features (in addition to excellent pedigree) currently tends to bring the highest price at auction in the Thoroughbred industry. However, the element of competitive bidding between determined prospective owners at public auction can result in significant variations in price among relatively similar Thoroughbreds.

The following is an estimate of various operating expenses that an owner will be incurring on an ongoing basis. These expenses can annually amount to a substantial portion of the initial cost of a horse and in some instances the annual cost of maintaining and racing a horse can exceed the initial cost of the horse. Costs will depend on where the horse is trained. Training fees of $86 per day are not uncommon at the major tracks in New York and southern California, but can be as low as $25 per day at small tracks outside metropolitan areas. These rates cover feed and boarding, as well as the trainer’s professional fee. They do not include blacksmith and veterinary care, which cost an additional $100-$350 per month. Most horses spend some time away from the track each year for "R&R". The daily rate during these "lay-up" periods can range from $10-$25 per day. The following gives an idea of what to expect in the first year after a yearling is purchased if it is decided to race at a medium cost track like Churchill Downs

Total $17,850

These are estimates for a yearling. The expense estimates for a year round racehorse would be higher. These estimates could change substantially depending on the location at which the horse will be raced, the success the horse has at the racetrack, the health of the horse and numerous other factors out of the General Partner’s control.

There are certain other expenses, which are not outlined above because they are variables, which will usually occur only if the horse win a purse and therefore would be paid by the owner out of purse earnings. These expenses can vary depending on the state, racetrack, and trainer. The main expenses are as follows: