Owning a Standardbred Race Horse

They call Thoroughbreds the “Sport of Kings”. You might need a king’s ransom to own a thoroughbred. Harness racing would be considered the sport of the everyday man because the costs are usually substantially less. Many more people can afford to take part in harness racing.

There are many factors to consider when you have made the decision to become an owner of a Standardbred Racehorse. What horse do you buy, how do you buy a horse, who will train it, how much does it cost, what type do you buy (trotter or pacer), who will drive the horse, how much can I make?

These are all very important questions. Your answers to these questions will give you a better idea if you want to become involved. Harness racing is a very exciting and thrilling sport. The animals are truly athletes. Unlike their thoroughbred counterparts which may race 10 or 12 times a year, Standardbreds are bred to race 30 to 40 times a year or more. They are built different from a thoroughbred. Standardbreds are smaller and are much more durable and have greater stamina.

In order to race a horse, you must be a member of the..................... That is the organization that governs racing and tracks ownership and keeps records of all horses. Each state also has a Racing commission. To become a member of the ......................, you must complete an application and pay a fee, which is $90 for a year. In............................ you must also obtain a license (this cannot be done until you actually own a horse). That cost is also $90 for a year.

How do I get a horse

There are many avenues to get into being a horse owner. You can breed a horse, go to an auction, buy a horse from an online auction, claim a horse from a race or buy one privately.

Breed a horse and raise the foal. This is a very rewarding way to enter, but it will take from the beginning of the breeding process at least 4 years until that foal will be eligible to race. And only if the horse is good enough. Not all foals make it to the races.
Auctions. There are numerous auctions that take place throughout the year in .................. etc. Just like any other auction of any type, this is where you can bid on horses. If you are fortunate enough to end up being the highest bidder, you can leave the auction with a horse. Prices at these auctions vary greatly depending on the horse. It is possible to buy something for $4000 on up. Auctions have had horses sell for over $1,000,000
Online auctions. Within the past 5 years or so, online auction sites were developed. This is where anyone looking to sell a horse, can list the horse on the site and give a time frame as to when bidding can start and when it ends. High bidder gets the horse. Like live auctions, prices will vary greatly depending on the horse.
Claiming race. Each race track has claiming races. This is a race where horses are entered into the race with a price tag. Anyone can buy that horse for the price listed. For example, there are $12500 claiming races at.............. That means if you want to buy that horse, you will need to fill out some paperwork before the race starts and pay the $12500 to the track, and the track in turn will pay the prior owner. If you are the only person interested in buying that horse, then you will be the owner after the race concludes. If there are multiple people looking to buy that horse, then those people’s names will be entered into a drawing and the winner will get the horse, the others will get their money back.
Private Sale. Many times, people sell horses without the use of any type of auction or claiming race. Usually, you would need to know someone who has horses, and they might know of people around the track that are looking to sell a horse.

Who will train the horse

This is a good question. Before buying a horse, you should find a trainer. Trainers are licensed by both the ASHA and the State Gaming Commission. Some trainers only train their own horses, while others train for many different people. If you know someone who has a horse already, that person has a trainer, and you can ask them who they use. If you do not know anyone that owns a horse or know any trainers, you need to do some research. The Saratoga Harness Horsepersons Association can help you. Anyone on our board can be contacted and we would be glad to give you some names of trainers that train and race horses at Saratoga and other tracks around the northeast. Like everything in life, there are many different trainers with different styles and maybe different specialties (like trotters or pacers).

What does gait mean and which should I buy

The gait of the horse refers to trotting and pacing. Pacers are usually easier to train and they go faster than trotters. Trotters can be more difficult to train than pacers. At most tracks, Pacers outnumber trotters by 2 or 3 times. At ASHA Tracks, there is usually one race card of trotters with 10-13 races. There are 2 to 3 race cards with pacers. Although there are fewer trotters, some trainers have a reputation for working well with horses racing under that gait.

How much does it cost once I buy a horse

Horse costs vary depending on the trainer. But typically, rates run $40 to $50 per day. This includes feeding the horse, cleaning the stall, grooming the horse and training the horse. Unlike Thoroughbreds that might work out once a week or every two weeks, Standardbreds typically workout (jog or train) 4 miles a day on days they are not racing. In addition to the daily rate, an owner can expect to pay for all vet work, all shoeing costs (typically once a month the horses get new shoes), and a race day paddock (this is the person that helps prep the horse on race day) Race Day paddocks are usually $75 to $100. So, all in all, if your horse does not need much vet work, you can expect to pay around $2000 a month during the racing season. For periods of time away from the track, turn out rates will vary by farm but generally run about $20 a day.

FRACTIONAL OWNERSHIP

If you are interested in Fractional Ownership, read the article below and contact the ASHA office for more information
The concept of fractional ownership in horse racing comes into play when there is:

Demand by owners to purchase fractional interests in a horse or horses. The attraction to owners may be a reduced cost of entry into horse ownership or the desire to be involved with a partnership on a horse that involves experienced owners. In some cases owners prefer partners on horses for social reasons as they enjoy the experience of owning and racing a horse with a group of friends or acquaintances
A effort by a trainer and training stable to bring new owners and horses into the stable. This reduces the risk of a trainer being too dependent on a small group of owners by adding new interested owners.

The tricky part of fractional ownership stables is bringing owners and trainers together. For fractional interest owners the model has some benefits and some drawbacks:

Benefits

Lower cost of entry into ownership buying a piece of a horse rather than the whole thing.
Ability to go as fast or slow as you want growing investment in race horses.
Social interaction with co-owners
Ability to discuss concerns with co-owners.

Drawbacks

Usually have less control in selection of horses than a high interest owner.
Less control in managing the race horse with more power to the trainer.

For training stables the following is a list of things that need to be considered when starting a fractional interest stable:

Any trainer considering a fractional ownership stable needs to put together a plan that sets targets for number of horses, types of horses and number of owners. Another consideration is the make up of stables. Will there be one per horse, one for a group of horse and of course how big or small to make the fraction owned. Finally how much will the trainer retain of each horse and charge for administration and overhead.
The onus will be on the trainer and their staff to sell the fractional stable concept to prospective owners. Presentation materials and a breakdown of whats involved with training and racing horses will be helpful especially with new owners.
The stable will require good management skills including regular written and verbal communication with ownership groups, accurate reporting and accounting records. prompt invoicing and the ability to collect on outstanding invoices.
You need language in stable agreements that leave final decisions with the trainer recognizing that they will need to take the time to explain the reasons for making decisions to the owners.

Getting started:

Solicit the help of Century Downs and/or ASHA to set up an event for prospective new owners interested in fractional ownership. This is where trainers will build relationships with prospective fractional owners so it is vital that the communication is excellent and that there is management of expectations and cautionary language that will narrow down lists of prospective owners to those with the ability to take the highs and lows of horse ownership.
With a group of prospective owners, determine how much capital they have for initial investment and how they will keep up with monthly bills. Communication is again important as trainers discuss type of horses targeted, expected acquisition cost and expected monthly net cost/benefit of racing.
From there it is getting the stable(s) organized. Collecting initial payments. Registering stables. Finally discussing and executing on horse acquisitions.

The Cardinal Rule:

The client (fractional owner) needs to be treated with respect, concerns need to be addressed, changes in their horses condition needs to be communicated and options discussed. If a trainer and his staff can develop a bond of trust with the fractional owners and deliver some measure of success there will be opportunity for growth.

Owning a Racehorse