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Money Talks

When all of the costs have been tallied at the end of the year, keeping a racehorse in training can cost $40,000 to upwards of $75,000 a year or more.

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By: Alex Campbell | July 1, 2015

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you're listening to an article from canadian thoroughbred.com. money talks by: alex campbell. the thrill of thoroughbred ownership is an experience unlike any other, and racing fans looking to take the plunge will likely have investigated the cost of acquiring their first horse. but what about the expenses incurred on top of the initial purchase price? even before acquiring their first horse, an owner will have to apply for their owners’ license. in ontario, new owners are charged $20 as a new applicant fee, along with $100 for their individual owners license. if involved in a partnership, it costs an additional $200 to register the stable name, and each owner in the partnership that has a five per cent stake or more in the horse must also be individually licensed. other provinces follow a similar structure, but the costs are much less. an individual ownership license in alberta is $50, and just $30 for three years in british columbia, while the annual fee is $35 in manitoba plus an additional $20 for partnerships. licenses don’t include registering silks, which costs $65 for one year and approximately $300 to have the silks made. owners also have the option of paying a $200 lifetime colours fee to avoid annual payments. advertisement scroll to continue with content once an owner is licensed, they can purchase a horse by entering a claim in a claiming race, purchasing a young horse from public auction, privately purchasing a horse from another owner, or owners can race horses they breed. tuccis tout claimers. carlo and lou tucci of tucci stables have owned horses at woodbine together since 1992. in their early years of ownership, the tuccis claimed horses to build their stable, and even managed to claim a couple of horses that would go on to win graded stakes, including just rushing and one for rose. in fact, the tuccis won their first queen’s plate with midnight aria in 2013, a horse they claimed for $35,000 at gulfstream park in january of that year. lou tucci said claiming is the quickest way to get into horse racing ownership, while carlo tucci added that claiming offers new owners a chance to earn revenue right away to help offset expenses. “the last thing you want to do is buy a two-year-old and not run until their three-year-old year and sit there and pay bills,” carlo said. “you’re going to get pretty down on the sport. when you claim, in two or three weeks there’s the potential to earn revenue and there’s also the excitement of seeing your horse run.”. trainer john leblanc, jr. owns several horses that he trains. most of his clients are breeders who race their own homebreds, but leblanc, jr. has also been involved in the purchase of yearlings at public auction over his 23-year training career. among them is the sale topper from the 2014 canadian premier yearling sale at woodbine that leblanc, jr. purchased for a syndicate for $325,000. leblanc, jr.: patience is key. leblanc, jr. said owners who opt to purchase young horses from public auction must have patience. “when you’re buying a yearling, that’s a long wait and a long process,” he said. “you’re talking a year of expenses if you’re lucky before you get that horse to the races. it’s not an easy thing to do to buy a yearling, but myself, i love yearlings.”. keith and rachel mcclelland of stoneleigh farm in rockwood, on, primarily breed thoroughbreds to sell at public auction, but sometimes they campaign their own homebreds at the racetrack. instead of paying to claim a horse or buy a horse out of an auction, one of the largest expenses the mcclelland’s pay is the stud fee to breed their mares to a stallion, which can range from $1,500 to $7,500 in canada, or more elsewhere. “the largest cost of course is a stud fee, and that depends on how you set that up,” keith said. “if you’re paying a normal stud fee, traditionally, they are due in the fall [of the foaling year].”. mcclelland added that breeders also pay a foal registration fee ($85) and could pay to nominate their foals to the breeders’ cup ($400). once a new owner has acquired their first horse, it’s time to get them ready for racing. if the horse is a yearling, the first step is to break the horses for riding. while some owners have the ability to break horses at their own farm to keep costs down, others will need to send their horses to a training centre for approximately six to eight weeks. in ontario, owners will be charged a day rate between $50 and $60, which covers boarding and training fees, while in british columbia, the day rate at a training centre ranges between $35 and $40. at the racetrack, a trainer’s day rate will vary based on where they train. for example, at woodbine a trainer will typically charge between $85 and $125 for their day rate, while down the road in fort erie, the day rate ranges between $45 and $55. out in british columbia, the day rate will typically be between $50 and $65. the day rate helps trainers cover the costs of caring for the horses and their stable staff. blacksmith, vet and other fees. what the day rate doesn’t cover is any blacksmith or veterinary fees. according to leblanc, jr., the average horse will get a visit from the blacksmith once a month that will cost approximately $150. meanwhile, veterinary fees will be different for every horse, but on average, carlo tucci estimates a bill of $600 per horse per month. “it varies quite a bit from horse to horse,” he said. “some horses need a little more care than others and some compete more. the more you race, the more veterinarian care you’ll need.”. while procedures and medications can range significantly from horse to horse, typical treatments owners can expect to be billed for include stomach ulcer medication like gastroguard, which can range from $1 to $2 a day, and dantrium, a medication which treats lactic acid build up that also costs $2 a day. when horses are successful on the track, owners will earn a portion of the purse, but they will also be required to pay commissions to the trainer and jockey. on average at woodbine, trainers will charge 10 per cent of the total purse earnings when a horse finishes first through third, while some trainers will charge down to fifth-place. jockeys, meanwhile, charge a $55 fee per race, which could reach $100 for stakes races, and also charge a 10 per cent commission for a win or a five per cent commission for second or third. similar practices exist at hastings racecourse in british columbia, where trainers will charge a 10 per cent commission on earnings when a horse finishes first through third. meanwhile, jockeys will charge approximately $70 for their mount fee, a 10 per cent commission if they win, and additional fees are charged for placing in races above a certain class level. owners who have horses competing at the stakes level will also be required to pay stakes nominations and entry fees. nomination and entry fees for the majority of stakes races at woodbine are typically 1.1 per cent of the total purse per horse. at the end of the season owners must decide whether they want to keep their horse in training or send them to the farm for a winter break. some owners opt to race in florida over the winter, which means they will continue to pay the track day rate, along with a van ride down to florida, and additional licensing fees to be able to enter a horse in a race. the van ride to florida will cost $1,500 for a one-way trip per horse, and licensing fees in florida are an additional $300 for the year. at the farm for the winter, or even for a break during the racing season, the costs are much less. a van ride to a farm within an hour of the track can cost $200 per horse, but the typical day rate at the farm is between $25 and $35. the veterinary and blacksmith fees are also lower on the farm, as long as no unforeseen circumstances occur. on average, horses will need work from the blacksmith every six weeks for a $100 fee, while vaccinations will be needed from the veterinarian once a year for $150 and deworming treatments will be needed every three months for $25. owners can also opt to insure their horses. once a value is agreed upon with an insurance agency, the owner would be required to pay a monthly premium. carlo tucci says only a select number of tucci stables horses are insured to limit the amount in premiums that they pay. “any of our horses that are stakes calibre horses, or any mare or filly that looks like a quality horse, we like to insure them because they have a value after their career in racing,” he said. the final tally. when all of the costs have been tallied at the end of the year, keeping a racehorse in training can cost $40,000 to upwards of $75,000 a year or more depending on certain factors. but, lou tucci says that when the bills get that high, it doesn’t mean it’s all bad news. “if your bill is $80,000 – $90,000 on a horse, that’s good news,” he said. “that means they’ve made money.”. the largest expense an owner will incur over the course of a season is the day rate at the track. at smaller racetracks, an owner might be able to keep their horse at the track for six months for $10,000, but at woodbine, which has a longer meet and higher day rates, the cost could reach $30,000 to $35,000 per horse. during the offseason, owners will likely pay a farm day rate, which can range from $3,500 to $5,500 for four to six months. vet bills can range between $2,000 and $5,000 per year assuming no major issues arise, while the blacksmith will likely cost $1,000 per year. licensing and equipment could cost up to $1,000 in ontario, while transportation to and from the track a couple times per season could reach $1,000 as well. finally, jockey and trainer commissions can vary between $5,000 and $25,000 depending on how well a horse performs. while those numbers may be tough for some to stomach, mcclelland recommends joining a syndicate as the best way for new owners to get involved in the game to help limit expenses by sharing the costs. “i think the best way to become an owner and get into the business is by getting into a syndicate and concentrate on having fun,” he said. “you have a lot of fun for a limited financial output.”. &&>

The thrill of thoroughbred ownership is an experience unlike any other, and racing fans looking to take the plunge will likely have investigated the cost of acquiring their first horse. But what about the expenses incurred on top of the initial purchase price? Even before acquiring their first horse, an owner will have to apply for their owners’ license. In Ontario, new owners are charged $20 as a new applicant fee, along with $100 for their individual owners license. If involved in a partnership, it costs an additional $200 to register the stable name, and each owner in the partnership that has a five per cent stake or more in the horse must also be individually licensed.

Other provinces follow a similar structure, but the costs are much less. An individual ownership license in Alberta is $50, and just $30 for three years in British Columbia, while the annual fee is $35 in Manitoba plus an additional $20 for partnerships.

Licenses don’t include registering silks, which costs $65 for one year and approximately $300 to have the silks made. Owners also have the option of paying a $200 lifetime colours fee to avoid annual payments.

Scroll to continue with content

Once an owner is licensed, they can purchase a horse by entering a claim in a claiming race, purchasing a young horse from public auction, privately purchasing a horse from another owner, or owners can race horses they breed.

Tuccis tout claimers

Carlo and Lou Tucci of Tucci Stables have owned horses at Woodbine together since 1992. In their early years of ownership, the Tuccis claimed horses to build their stable, and even managed to claim a couple of horses that would go on to win graded stakes, including Just Rushing and One For Rose. In fact, the Tuccis won their first Queen’s Plate with Midnight Aria in 2013, a horse they claimed for $35,000 at Gulfstream Park in January of that year.

Lou Tucci said claiming is the quickest way to get into horse racing ownership, while Carlo Tucci added that claiming offers new owners a chance to earn revenue right away to help offset expenses.

“The last thing you want to do is buy a two-year-old and not run until their three-year-old year and sit there and pay bills,” Carlo said. “You’re going to get pretty down on the sport. When you claim, in two or three weeks there’s the potential to earn revenue and there’s also the excitement of seeing your horse run.”

Trainer John LeBlanc, Jr. owns several horses that he trains. Most of his clients are breeders who race their own homebreds, but LeBlanc, Jr. has also been involved in the purchase of yearlings at public auction over his 23-year training career. Among them is the sale topper from the 2014 Canadian Premier Yearling Sale at Woodbine that LeBlanc, Jr. purchased for a syndicate for $325,000.

LeBlanc, Jr. : patience is key

LeBlanc, Jr. said owners who opt to purchase young horses from public auction must have patience.

“When you’re buying a yearling, that’s a long wait and a long process,” he said. “You’re talking a year of expenses if you’re lucky before you get that horse to the races. It’s not an easy thing to do to buy a yearling, but myself, I love yearlings.”

Keith and Rachel McClelland of Stoneleigh Farm in Rockwood, ON, primarily breed thoroughbreds to sell at public auction, but sometimes they campaign their own homebreds at the racetrack. Instead of paying to claim a horse or buy a horse out of an auction, one of the largest expenses the McClelland’s pay is the stud fee to breed their mares to a stallion, which can range from $1,500 to $7,500 in Canada, or more elsewhere.

“The largest cost of course is a stud fee, and that depends on how you set that up,” Keith said. “If you’re paying a normal stud fee, traditionally, they are due in the fall [of the foaling year].”

McClelland added that breeders also pay a foal registration fee ($85) and could pay to nominate their foals to the Breeders’ Cup ($400).

Once a new owner has acquired their first horse, it’s time to get them ready for racing. If the horse is a yearling, the first step is to break the horses for riding. While some owners have the ability to break horses at their own farm to keep costs down, others will need to send their horses to a training centre for approximately six to eight weeks. In Ontario, owners will be charged a day rate between $50 and $60, which covers boarding and training fees, while in British Columbia, the day rate at a training centre ranges between $35 and $40.

At the racetrack, a trainer’s day rate will vary based on where they train. For example, at Woodbine a trainer will typically charge between $85 and $125 for their day rate, while down the road in Fort Erie, the day rate ranges between $45 and $55. Out in British Columbia, the day rate will typically be between $50 and $65.

The day rate helps trainers cover the costs of caring for the horses and their stable staff.

Blacksmith, Vet and Other Fees

What the day rate doesn’t cover is any blacksmith or veterinary fees. According to LeBlanc, Jr., the average horse will get a visit from the blacksmith once a month that will cost approximately $150. Meanwhile, veterinary fees will be different for every horse, but on average, Carlo Tucci estimates a bill of $600 per horse per month.

“It varies quite a bit from horse to horse,” he said. “Some horses need a little more care than others and some compete more. The more you race, the more veterinarian care you’ll need.”

While procedures and medications can range significantly from horse to horse, typical treatments owners can expect to be billed for include stomach ulcer medication like GastroGuard, which can range from $1 to $2 a day, and Dantrium, a medication which treats lactic acid build up that also costs $2 a day.

When horses are successful on the track, owners will earn a portion of the purse, but they will also be required to pay commissions to the trainer and jockey. On average at Woodbine, trainers will charge 10 per cent of the total purse earnings when a horse finishes first through third, while some trainers will charge down to fifth-place. Jockeys, meanwhile, charge a $55 fee per race, which could reach $100 for stakes races, and also charge a 10 per cent commission for a win or a five per cent commission for second or third. Similar practices exist at Hastings Racecourse in British Columbia, where trainers will charge a 10 per cent commission on earnings when a horse finishes first through third. Meanwhile, jockeys will charge approximately $70 for their mount fee, a 10 per cent commission if they win, and additional fees are charged for placing in races above a certain class level.

Owners who have horses competing at the stakes level will also be required to pay stakes nominations and entry fees. Nomination and entry fees for the majority of stakes races at Woodbine are typically 1.1 per cent of the total purse per horse.

At the end of the season owners must decide whether they want to keep their horse in training or send them to the farm for a winter break. Some owners opt to race in Florida over the winter, which means they will continue to pay the track day rate, along with a van ride down to Florida, and additional licensing fees to be able to enter a horse in a race. The van ride to Florida will cost $1,500 for a one-way trip per horse, and licensing fees in Florida are an additional $300 for the year.

At the farm for the winter, or even for a break during the racing season, the costs are much less. A van ride to a farm within an hour of the track can cost $200 per horse, but the typical day rate at the farm is between $25 and $35. The veterinary and blacksmith fees are also lower on the farm, as long as no unforeseen circumstances occur. On average, horses will need work from the blacksmith every six weeks for a $100 fee, while vaccinations will be needed from the veterinarian once a year for $150 and deworming treatments will be needed every three months for $25.

Owners can also opt to insure their horses. Once a value is agreed upon with an insurance agency, the owner would be required to pay a monthly premium. Carlo Tucci says only a select number of Tucci Stables horses are insured to limit the amount in premiums that they pay.

“Any of our horses that are stakes calibre horses, or any mare or filly that looks like a quality horse, we like to insure them because they have a value after their career in racing,” he said.

The final tally

When all of the costs have been tallied at the end of the year, keeping a racehorse in training can cost $40,000 to upwards of $75,000 a year or more depending on certain factors. But, Lou Tucci says that when the bills get that high, it doesn’t mean it’s all bad news.

“If your bill is $80,000 – $90,000 on a horse, that’s good news,” he said. “That means they’ve made money.”

The largest expense an owner will incur over the course of a season is the day rate at the track. At smaller racetracks, an owner might be able to keep their horse at the track for six months for $10,000, but at Woodbine, which has a longer meet and higher day rates, the cost could reach $30,000 to $35,000 per horse. During the offseason, owners will likely pay a farm day rate, which can range from $3,500 to $5,500 for four to six months. Vet bills can range between $2,000 and $5,000 per year assuming no major issues arise, while the blacksmith will likely cost $1,000 per year. Licensing and equipment could cost up to $1,000 in Ontario, while transportation to and from the track a couple times per season could reach $1,000 as well. Finally, jockey and trainer commissions can vary between $5,000 and $25,000 depending on how well a horse performs.

While those numbers may be tough for some to stomach, McClelland recommends joining a syndicate as the best way for new owners to get involved in the game to help limit expenses by sharing the costs.

“I think the best way to become an owner and get into the business is by getting into a syndicate and concentrate on having fun,” he said. “You have a lot of fun for a limited financial output.”