Lexington sale

[buffalo believer]

Fast forward 5 years: how many horses out of 100 when all is said and done have made money beyond all bills ( vet, training, stakes, shoes, shipping) and purchase price?  I don't have the answer but what is your guess?

[horses first]

BB, I did some research years back and it's difficult to say but a overall percentage for harness 12-14% which is a bit better then th 8-10% for thoroughbred. It's a tough sell when 146 MH sell in 2 years bringing 18m dollars. There just isn't enough big races to win at 2 and 3. Only 1 can win the Oaks or Hambo. 1 can only win a Sire finals, or Earl Beal, and this is just 1 sire and it doesn't mean MH bred horses win all the big races anyway. Let's not forget buying yearlings your holding the bag for 10 months before they tend to race. For the heck of it 146 yearlings say x3,000 for just a training bill your at 438k for 1 month. So tack on another +4m to your 18m and you haven't added in the major stake payments and other etc etc etc. The top of the game is played by the top players with most the money. For them it's a money churn to normal income. Everyone wants that great colt to win a Hambo then get a syndication. Or a breeding farm that sees potential in a young race horse and pays up for future jackpot. It's all risk and how one manages it. If the top is willing to lose money then more power to them otherwise the game would be much different.

[LUCPARK]

evry body has the right to dream,
and if they can afford the bills and horses  more power to them

..jmho..

I hope all do well,,

 

[Fatboy]

I hear that family is considered very outdated by many

smart man

[horses first]

Rid Flair bought 223 a American Ideal pacing colt for 24k

[Equus Caballus]

Average was 83 k and change tonight

I’m interested to see what happenes at harrisburg

[Inside The Pylons]

 Everybody complains about the high cost, except those who are the sellers.  You know you can get into the business from the selling angle also.  But I guess that doesn't give the ego a boost when you hope to hear, "your horse raced great" and that is what buyers want to hear, Ego Flattering comments,  There are very, very few Humble people in this industry

[slimshady]

Money makes the world go around.   If you've got it, flaunt it.  Certainly doesn't hurt the business.
The big fish buy the flawless and pedigreed, while the little guy tries to find something with a flaw or two that don't stand in the way of a successful racing career.
It's a lottery.   Like finding a top 6 forward in the 7th round of the draft.

[Brown jug]

hahahaha
good one
ric flair doesn't have $24 let alone $24k
whooooaaaa!!!

[augustaandy]

Bought my first 6 figure yearling (trotting colt) but man it’s tough when the big guys raise their hand on everything. For me it was pay the Gov’t or buy a horse and get the 100% depreciation. Eligible in two states.

that is EXACTLY what is causing the high prices

buy the horse or pay the government but if the horse is great you just hit the lottery

good luck!!!

 

[pickfourny]

Bought my first 6 figure yearling (trotting colt) but man it’s tough when the big guys raise their hand on everything. For me it was pay the Gov’t or buy a horse and get the 100% depreciation. Eligible in two states.

Good luck with your purchase.  I pondered the last part of your comment (pay the govt or buy the horse and get 100% dep); of course the key here is being able to substantiate that one is in the business of racing, and not merely of course invested in what's construed a hobby.  Always tricky with the IRS.  That aside best of  luck racing!

[horses first]

Hobby or not if the person is new to the industry you usually have 7 years to show your in it to make a profit. If you happen to put back to back profit years together your good for a long time. 100% not sure if that person thinks it in 1 year it's not. The depreciation is over 3 years 33%.  It was 100% for a couple years during the recession. With the IRS and horse racing it's always a red flag but you have sometime to show profits. If your in it for a long time it's best to show profits at some point.

[augustaandy]

Hobby or not if the person is new to the industry you usually have 7 years to show your in it to make a profit. If you happen to put back to back profit years together your good for a long time. 100% not sure if that person thinks it in 1 year it's not. The depreciation is over 3 years 33%.  It was 100% for a couple years during the recession. With the IRS and horse racing it's always a red flag but you have sometime to show profits. If your in it for a long time it's best to show profits at some point.

I believe we are back to accelerated depreciation (but I'm not an accountant)

[augustaandy]

a Muscle Hill sold for $30,000 and another for $10,000 tonight

sometimes they aren't huge sellers

[horses first]

That 4th leg would have came in handy on those two. All kidding aside there looked to be many that had value on day 3 for some reason. Sale was down 12.5% from last comparing day 3. Will be interesting over the next two days and especially day 5 where you have many that aren't the PA, NY, and NJ yearlings.