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Introduction to Thoroughbred Racing
When a yearling becomes a two-year-old on January 1st, it is eligible to race. Two-year-olds generally begin racing at four to five furlongs and are gradually extended to five-and-a-half, six, and seven furlongs, and longer. During the early two-year-old season, many young horses prove simply too small or fragile for early racing and are ‘turned out’ for further development. Racing careers will not begin for many horses until they reach full development in their third or fourth year. One third of all foals never make it to the track for even one race. Over one half of those who do never win a single race.
During its career, a Thoroughbred may run in a variety of faces. A maiden race is one for horses who have never won any race. A claiming race is one in which any horse running may be purchased at the specific claiming price that posted as a condition of entry. In allowance races, the weight that each horse carries is set by the track’s racing secretary, who makes specific allowances for horses with less impressive past performances, and saddles better horses with more weight. Allowance races are distinguished by entry conditions which restrict the race to horses which haven’t won more than a certain number of other, lower level allowance races. Horses thus generally compete only against other horses who have won the same number of allowance races, advancing up the ladder as they win. The most important Thoroughbred races, stakes races, attract the best horses and the most public attention. Owners must pay a nomination fee or a series of nomination fess in advance, and an entry fee and starting fee at the time of entry (a few days before the race) and on race day. The stakes money raised by these fees is supplemented by ‘added money’ contributed to the purse by the track, and in some cases further supplemented by state breeders’ association awards. There are also a number of combinations and variations on these race types.
In 2003, Thoroughbred racing in North America distributed $905 million in purses. This figure was largely provided by bettors, through a percentage of the betting handle. Also that year, the total handle in North America was $17.8 billion. While purses have more than doubled sine 1990, the number of races – 53,312 in 2003 – has declined about 13% in that time, improving the average purse per race and the average earnings per runner. This increase in averages has created one of the best environments for owning racehorses in decades. In addition, the market for Thoroughbred foals, and for yearlings at auction, has stabilized after the “bubble” of the late ‘80s. State breeding programs have expanded both the awards available to breeders and owners, and, therefore, the number of foals – particularly in states like New York which have an active and vigorous state-bred program. All of these trends mean growing supply of horses coupled with stable (as it were) demand and greater return on investment. This makes ownership, and in particular ownership of New York-breds, a much better proposition today than in the mid-80s, when a surplus of demand and races pushed down the averages in real dollars.
Racehorse ownership is still a tough game. Only a small percentage of runners every year cover their training costs for their owners. Training expenses, entry fees, farriers, insurance and transportation costs are substantial. Most owners get involved in racing for the love of racehorse ownership and the thrill of racing. Because of this, each partner agrees and acknowledges that the primary goal of the partnership is the pleasure and enjoyment of horse racing (the sport of kings!) and the ability to participate in the sport as the part owner of a Thoroughbred race horse. Each partner agrees that she or he becomes a partner in Karakorum partnerships solely for fraternal and entertainment purposes, and not with any expectation of any investment return upon the amounts contributed to the partnership.
Understanding Thoroughbred Racing ^Back to Top^ The world of Thoroughbred racing – like many other industries – has its own unique language, practices and regulations. To help you make the most informed decisions about a horse racing partnership, we've taken the mystery out of the racetrack with brief overview of the sport.
Thoroughbred Racing Eligibility
When a yearling becomes a two-year-old on January 1st, it becomes eligible to race. Two-year-olds generally begin racing at four to five furlongs and are gradually extended to five-and-a-half, six, and seven furlongs, and longer.
During the early two-year-old season, many young Thoroughbreds prove too immature for early racing and are “turned out” for further development. And for many horses, their racing careers don't begin until they reach full development in their third or fourth year. In fact, one-third of all foals never make it to the track for even one race; over half of those who do make it to the track never win a single race.
A Thoroughbred's Racing Career
A Thoroughbred may run in a variety of races during its career, including maiden races, claiming races, allowance races and stakes races.
A maiden race is one for horses that have never won any race. A claiming race is one in which each owner declares before the race at what price his horse will be offered for sale. There are two levels of maiden races: maiden special weights , for which each horse must carry the same assigned weight; and maiden claiming , for which each horse is offered for sale at a given price.
In allowance races , the weight that each horse carries is set by the track's racing secretary. The secretary makes specific allowances for horses with less impressive past performances, and saddles the better horses with more weight. Additionally, they restrict the race to Thoroughbred horses that haven't won more than a certain number of other, lower-level allowance races. Thoroughbred horses generally compete only against other horses who have won the same number of allowance races, advancing up the ladder as they win.
In Thoroughbred racing, s takes races are the most important ones because they attract the best horses – and the most public attention. Thoroughbred owners must pay nomination fees in advance, as well as entry and starting fees at the time of entry (a few days before the race) and on race day. The stakes money raised by these fees is supplemented by added money contributed to the purse by the track, and in some cases further supplemented by state breeders' association awards.
Why Own a Thoroughbred Racehorse? ^ Back to Top ^ With the approach of video lottery terminals (VLTs) in the New York market, purses for NYRA races are set to soar over the next two years. The quality of New York-breds, in particular, is rapidly increasing, and New York-breds can run in a maiden and two allowance conditions that are restricted to state-bred horses. This protects them from competition from “open” runners until their careers are launched.
Additionally, new regulations have made banned performance-enhancing drugs more difficult to administer, which levels the playing field. The upcoming renewal of the franchise to operate New York 's major tracks (the NYRA – New York Racing Association – circuit) has also opened the game beyond the “old-boys network,” as the franchise's operators seek to broaden their constituency. These advancements in the sport make owning a Thoroughbred racehorse more attractive than ever before.
The Thrill of Racing – Unlike Anything Else
Of course, the pulse-pounding excitement, the glamour, the insider's access and the potentially large winnings are what make owning a Thoroughbred so alluring. The Karakorum Team believes every one of its partners should have the experience of knowing what it's like to own a magnificent Thoroughbred horse.
However, Thoroughbred horse ownership is still a tough game. Only a small percentage of runners every year cover their training costs for their owners. And training expenses, entry fees, veterinarians, farriers, insurance and transportation costs are substantial.
The Love of Racehorse Ownership
Most owners get involved in racing for the love of racehorse ownership and the thrill of racing. Because of this, our partners become involved for the enjoyment of horse racing and the ability to participate in the sport as the part owner of a Thoroughbred race horse.
When you become a partner in Karakorum , you do it solely for the fun of sharing the sport with other like-minded Thoroughbred racing enthusiasts – there's absolutely no guarantee that you'll receive any return on the amounts you contribute to the partnership. After all, a Thoroughbred horse partnership is just like any other high-ticket hobby – the money you spend is purely for the pleasure of participation.
Ownership Benefits ^ Back to Top ^
In addition to the fun, excitement and camaraderie of being a racing “insider,” becoming a Karakorum Thoroughbred partner has a number of other benefits.
- Trainer Insights
Our experienced trainers are usually at the top of the standings at their track. Because they're with the horses every day, they have first-hand insight into each horse's unique personality, strengths and potential. Our trainers are happy to welcome you to their barns and answer any questions to help you continue to build your personal racing education.
- Racetrack Privileges
Attending morning workouts have become a tradition for many of our partners, and is just one of the perks of becoming a Karakorum partner. There's no better way to learn the sport of Thoroughbred racing from the inside than getting to know the horses, and meeting the trainers, exercise riders and grooms. On race day, you enjoy the behind-the-scenes action of the Thoroughbred racing world with full access to the stable area, complimentary admission and parking, and paddock access privileges.
- Up-to-the Minute Information
Whether you want check out the details of our recent winners in the Winner's Circle, see what's happing at the stable in Stable News, or get the latest on Karakorum 's currently available Thoroughbreds in New Offerings, www. Karakorum.com has it all. Since you're already on the web site, take some time to look around. Subscribe to our free online newsletter to hear about Karakourm's Thoroughbred racing partnerships, stakes wins, race entries and stable news.
- Detailed Financial Reports
As a Karakourm Racing Team partner, you will receive a monthly invoice detailing the expenses for each of your horses. Partners receive a detailed breakout of their purse earnings for every winning race. You can receive a statement at any time, simply by asking for one. Within 60 days of the conclusion of the calendar year, partners also receive a Form K-1 that reflects the tax consequences of their involvement in each horse.
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