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View Full Version : $ 16 Million for a horse???


Rudy
03-05-2006, 08:30 PM
A 2 year old out of Forestry sold for 16 million dollars at Calder just a week ago..Most people don't understand the business side of this.. Obviously this horse must be something special which has yet to be seen...The horse was bred by Satish Sanan, a man who is determined to get what he wants.His belief is to breed the best with the best...This horse was sold at auction for close to 1/2 million...did Satish make a mistake...in the long run probably not
he's in for the long haul...Did the buyers who paid 16 mill..maybe not. If this horse stays injury free to win its maiden and go on to say the Derby or further the present stud fee for Giants Causeway sits at $300,000 which is not the highest stud fee...so theoretically this horse could bring at least that or more so really the money to be made is not in racing but the breeding side...Also what many of us fail to realize is that Americans are not the only ones who spend alot...just take a look at purses in Saudi Arabia and Japan...so although this looks like too much spent I beleive a profit will be made if the horse stays sound and produces as expected....feel free to share your thoughts breeders and trainers..............

RJ Racing
03-05-2006, 09:39 PM
You paint a perfect picture for success. I would say the odds are way against it.
Ron

ken
03-06-2006, 01:49 AM
Since if I bought a high-priced colt at auction I would have my equine insurance agent there to immediately insure it, how much would the colt be insured for?

WitchDoctor
03-06-2006, 02:37 PM
I stole this from the pedigreequery board.

Don't have a clue how the thoroughbred industry is, but I can tell you what it would cost to insure a quarterhorse with our insurance company. 3.5% of purchase price. Homegrown's, 3 times the stud fee. Broodmares, 2.8% purchase price. Yearly. This is mortality. A rider can be added for medical and major medical. The insurance can be increased only with training and winning's.

Using these figures, that 16M colt would cost $560,000 to insure. And it's not even tax deductiable. I tried, with the arguement that it's part of the up-keep. Accountant wouldn't buy it.

deltasports
03-06-2006, 09:55 PM
The Outfit That Bought That 2year Old.....that $560,000 Is Like $56 Dollars To Them...that You Can Take To The Bank...

Mister Sanderson
03-07-2006, 12:39 PM
better be able to walk on water and "shake that laffy taffy" as well. And I would expect he would be able to carry on a conversation with me as well. Just to assure me my $16 million is in good hands. They should name this one "Fusaichi Badinvestment!!" hh) $)

deltasports
03-07-2006, 07:37 PM
All He Has To Do Is Break His Maiden By Open Lengths And Win 3 More Races The Same Way(don't Even Have To Win A G1 & He Can Go To Stud With A $150k Stud Fee And His Book Would Be At Least 200 Covers Minimum...=thats $30 Million The First Year..

deltasports
03-07-2006, 07:42 PM
All He Has To Do Is Break His Maiden By Open Lengths And Win 3 More Races The Same Way(don't Even Have To Win A G1 & He Can Go To Stud With A $150k Stud Fee And His Book Would Be At Least 200 Covers Minimum...=thats $30 Million The First Year..