Thoroughbred Sales and Public Auction Part 1: Introduction

 Purchasing a thoroughbred for your future participation or continued participation in the racing industry is one of the most important aspects of your investment.  I would like to reinforce the term "investment".  Weather you join the game for pleasure, or you plan on a return for your deposit, you need to be in the mind frame of value.  The racing industry has many flaws and is often attacked with negative publicity from laymen complaining of rampant cheating and scamming.  All areas of life are plagued with people that are out to make a quick dollar fast without putting in the hard earned work to develop a reputation.
Think in terms of buying a used car, selecting a general contractor, or retaining a lawyer.  People can relate to the fact that it is always difficult to find a reliable and trustworthy vehicle, mechanic, or any other service because that entity knows something we don't and can make a lot of money quickly because we are not knowledgable of the product or service.  Most people will rely on word of mouth or consumer research tools to find a reputable business.  The blog you are reading is designed for that specific reason.
If you plan on purchasing a thoroughbred, you should consult a reputable Bloodstock Agent, Veterinarian, and Trainer.  The Bloodstock Agent specializes in research of market trends and breeding value.  The agent will research the appropriate pedigree and view all horses for conformational performance.  A Veterinarian is needed to make sure all things are in working order with your new investment.  The people at the sales known as consignors, provide Vet work, but buyer beware, sometimes Vets and consignors have a "gentleman's agreement" meaning the Vet will "sign off" on a clean bill of health even if their is a developing issue that could cause a problem in the future.  Like I said, please remember, it is similar to buying a used car.  You can not always trust the salesman or dealership.  You must educate yourself and arm yourself with a trustworthy and loyal team of specialists.  I will provide more detail as the weeks pass, but this is just an introduction to prepare and help educate.  The thoroughbred industry is not "evil" and filled with cheaters and scam artists.  Any industry has members that try to make a quick dollar of those less educated.  Our blog will help educate and inform, offer assistance of any kind so you can gain the most from your new investment and enjoy the main purpose: love of the athlete and thrill from the adrenaline rush of standing in the winners circle!  Join the Ritual.

Posted by: Jessica Maciejewski

Thinking About Cost

So another thing you have to do is to honestly figure out what kind of money you want to spend on this deal. As an example it is about 1/3 to 1/2 of the price for a trainer in Arizona than it is in Southern California. Trainers have what they call a Day Rate, this is what they will charge you every day of the month for your horse. It covers all the basics such as feed, works and everything to do with the daily routine. It doesn’t cover vets, shoeing any special supplements or medications or anything to do with the actual race day, we’ll get into those later. Another way that some trainers do business is to not charge you a Day Rate but to charge you a percentage of the win money that the horse makes. Now I personally am not a fan of this method, and I don’t think many trainers are either, since the trainer carries all the cost and that can mean the owner doesn’t really have much say about what goes on with the horse let alone make much off of any money earned. As an example I know of a man that had such a deal with his trainer, the owner got 25%of the winnings with the trainer getting 75%. So just think if your horse does do well that means you see very little return on your investment. Anyway, so in Arizona you could pay a good trainer $40-$50 a day and in Southern Cal that could run you around $90-$100. Now keep in mind that the difference between the two is like the major leagues and a farm team, so some of that jump in price is completely justified. Some of it has to do with things like Workman’s Comp and fees that the trainers have to pay, and of course those are going to get passed to the owners, some states are just much more expensive to deal with.

Another option to cut down on your cost is to go into a partnership. Again there are several ways to go on this, you can get with some friends and all buy in on a horse and split the cost, like the partnership that was started by six friends in New York and purchased Funny Cide, or you could buy into an already established racing partnership. Usually you buy “shares” like a stock. If you go this way you want to have a very defined agreement with a clear understanding of how many shares there are and what responsibilities and benefits are part of this partnership. Remember if you don’t own the majority you’re really just along for the ride and may have no real say so about anything. However, this is a good way to get your feet wet and to go out there and just have some fun without the bulk of the responsibility. No matter which way you take make sure part of the deal is to get copies of all the bills that affect your horse, such as vet bills and such, so that you have a complete accounting of what your percentage of liability is.

You Need a Vet

 In the list of things to do here is another very important step, get a good vet! If you are going to buy your new horse in a private sale then one of the things that you absolutely have to do is get a Vet Check of your potential new horse. This is just a basic physical not an in depth exam however it could end up bringing some problems to light that would then require a more extensive check. As an example, at one point my husband and I were going to purchase a horse and had the Vet Check done. The vet came across something that caused him concern and recommended that we get an x-ray done of one of the legs, he found a that the horse had a hairline fracture. We let the owner know about it and chose not to complete the sale. This saved us, potentially, thousands of dollars. Now if you claim a horse then you don’t have this ability, when you claim it is basically and as is sale so be aware of that. But if you get the horse be sure that you have it checked out fully as soon as you can by your trainer’s vet.

  If you are new to this then there are a couple of things you need to know about dealing with vets, doesn’t matter if they are on the track or training farm. First, make sure that bill is sent straight to you and not your trainer, you’re going to need them for your taxes anyway, this way you know exactly what is going on with your horse’s health. Second if you don’t understand what you’re getting charged for then don’t be afraid to call and ask them, heck with the internet you can look up the medications and such online if you want. Don’t be intimidated by them, in most cases they are more than happy to explain what was done and why.

Things to Think About Part 2

One of the things to consider is where do you want to race? If you live in a town where there happens to be a track then it is kind of a no brainer. But what if you live in say Vegas? Well we don’t have any tracks here, at least not anymore, and that makes it a little tougher. You could go to Arizona or California, if you want to be close enough to go see your horse run, so which one do you pick? In certain states they have what they call Breed money, this is extra cash that is put into the purse for a horse that wins, or in some cases for lighting the board, that is bred in that stat. This can end up being a big deal thru the course of the year if you have a consistent horse, in the case of my first horse that I owned with my father it was several thousand dollars in the year. As an example in California if a horse wins its Maiden, first win, race in what is called a Special Weight race they get extra money straight to the owner. If the win is in Northern California or a race at the fairgrounds in the state it is $10,000, if it is a win in Southern California, Hollywood Park or Santa Anita, then it is $20,000. Now keep in mind this is for Thoroughbreds only and us something sponsored by The California Thoroughbred Breeders Association, so you may want to know about these possible extra awards before choosing where you want to race.

Jessica Maciejewski

Jessica Maciejewski
Founder and agent with Ritual Bloodstock and WorldEquus

I moved from PA to KY at the age of 18 with dreams and aspirations of becoming a famous race horse trainer. The motivation was spawned from the love of horses and many picture books I viewed as a child of the beautiful farms and history of the infamous bluegrass state. Kentucky was amazing, and I started out on the backside, but what I saw made me change my mind about a career in training. I did not like many of the practices and treatment of horses observed on the track. It is also a very difficult feat to make your way in this business as a female without family ties in the thoroughbred business. I tried my way in several different venues of the industry, pedigree forms at Bloodstock Research now known as Brisnet, show person for Keeneland sales, pari-mutuel clerk, farm worker, and equine veterinary technician. I eventually discovered the world of a Bloodstock agent. A Bloodstock agent is much like a Real Estate agent, I locate and purchase what a buyer of thoroughbreds wants. It is a tough profession and takes a very long time to build your reputation. So in the process, I went to school at the University of Kentucky to kill time and received a degree in Biotechnology. I chose the degree so I could concentrate on genetics and apply to my Bloodstock research. The thoroughbred industry is tough, you have to have a tough skin and be educated. I do not have a job or career, I have a lifestyle and it is fabulous. The sport of racing is invigorating and I want to share my passion with everyone. I flourish from providing others with information, answering questions, and introducing you to these amazing athletes. The sport of racing is an adrenaline rush like nothing you will ever experience. The purpose of this page is to provide a comfortable forum that you can feel welcome to ask any and all questions. It is not designed to attack, criticize, or complain about people, places or events. Owning a thoroughbred, being a partner, or simply a fan is confusing. The blog is an international reference, the BBB of racing. Please post and contribute any and all experiences, tips, thoughts, and experiences to help each other learn. Enjoy.

Terri Crookham

Terri Crookham

So first off let me tell you a few things about myself, I mean after all what makes me qualified to even talk about this whole horse racing stuff? Well my folks got in the business back in the early 70’s at a fair track in Victorville Ca, it wasn’t a pari-mutuel track and you didn’t even need papers to race there but it was a start. We traveled all over the fair circuit in Arizona till one day my mom told my dad she wanted to go to Juarez, my dad’s answer was “where the hell is Juarez”. It turns out they actually had a shirt that said that. Anyway, we raced there and all around New Mexico for years. I was, at first, the unofficial groom and when I was old enough I got my license and became official. As I got older and worked in the “real” world, I still went and helped my folks out whenever I could. One day I went in a partnership with my dad on my favorite horse, Dhabi Lee, until I moved out to Las Vegas to be with my now husband.
Time came and went, my dad passed away and my mom retired from the business. I even ended up working for the simulcast company that sends out the bulk of the tracks to everyone, great gig right? Watch horse racing all day and get paid for I, that will come into play later. Then the husband looks up a horse that my mom wanted some info on, Black Tie Affair, she used to love watching this guy run. The hubby ran across a grand-daughter of his, Missy’s Gone Wild, which was for sale in Riverside Ca. He said “let’s go buy a horse”, so we did. Now mind you there were other things we went thru before we loaded in the car and drove down there to see her, but I’ll cover that stuff in my writings.
Anyway one horse led to another, Practical Magic, and then Missy getting in foal, yes we’re now breeders too, and then a third horse, Running Isabella. I’ve heard people say they’re like Lays potato chips and you can’t have just one. We’ve been thru several trainers, riders,stables and vets. I started talking to another lady that was a small owner and we realized that there didn’t seem to be any sort of resource for people that were small owners or people just getting involved with the sport. I brought this up to another friend, Jessica, when she was out visiting from Kentucky. So then Jessica came up with idea to do this blog and asked me if I was up for it. I thought what the heck, I’m always on Facebook and all the sites anyway picking thru information so why not.
So the whole purpose of this blog is to share information about a business that, many times, likes to keep everything kind of secretive. So welcome to our blog, and be sure to let us know if there is anything you’d like to see us cover, or frankly anything you have a question about at all.

Start Planning Now

The first thing you need to know about this is, write down EVERYTHING!  Anything that you've done, anywhere you go and any conversations that you have about this business. Do this the moment you start thinking about getting involved in horse racing, trust me on this one.  I know it will be a pain but it can really go a long way toward helping you out on your taxes at the end of the year.  Another thing is to find someone to do your taxes that knows about horse racing, also a big money saver in the end.  I know that the first couple of years we just went to our regular tax person, we did give her some notice about the new buisness so that she could look into it.  Later we found out that there were some rules that she wasn't aware of, they changed the year before, so then we had to look to amend out return.  This waste time and money.

Thinking of Breeding

When you make the choice to breed you have to really dig in and do some research. This isn’t a deal where you put up some pictures of available studs on the wall and throw a dart, although truth told it seems that some people make their choices this way. Anyway, you have to look at your horse and try to find a match that will add those traits that you feel your horse lacks or needs improvement in. Example, you have a mare that has a lot of speed but runs in sprints, well you may want to mix with a stallion that has some history of running well at distance. Or you may want to add extra durability to mix. These are the kind of things you need to think about.
You may want to look for a stallion in your state since there may be breed incentives available to you thru your State Breeders Association. Plus, if your mare is in state it would be easier for you to visit and conduct any business you may need to take care of. In addition you may save on shipping cost, which can be considerable. If you choose to go out of state the stud farm will probably have a list of nearby farms that they deal with as far as boarding. It was a big surprise for us that the mares don’t usually stay on the farms where you breed in Kentucky. The stud farm can be a major source of information and help to you, so don’t be afraid to ask them.

Things to Think About Part 1

One of the things to consider is where do you want to race? If you live in a town where there happens to be a track then it is kind of a no brainer. But what if you live in say Vegas? Well we don’t have any tracks here, at least not anymore, and that makes it a little tougher. You could go to Arizona or California, if you want to be close enough to go see your horse run, so which one do you pick? In certain states they have what they call Breed money, this is extra cash that is put into the purse for a horse that wins, or in some cases for lighting the board, that is bred in that stat. This can end up being a big deal thru the course of the year if you have a consistent horse, in the case of my first horse that I owned with my father it was several thousand dollars in the year. As an example in California if a horse wins its Maiden, first win, race in what is called a Special Weight race they get extra money straight to the owner. If the win is in Northern California or a race at the fairgrounds in the state it is $10,000, if it is a win in Southern California, Hollywood Park or Santa Anita, then it is $20,000. Now keep in mind this is for Thoroughbreds only and us something sponsored by The California Thoroughbred Breeders Association, so you may want to know about these possible extra awards before choosing where you want to race.

Getting Started

I’m going to start off writing about different aspects of horse ownership for those that are just starting out in the business, or are thinking about getting involved. There’s a lot to it but one of the biggest things to remember is that this is a business so you need to treat it as such. I’m not saying to avoid getting too attached to your horses, because goodness knows in my home we’re all about spoiling them, but what I am saying is to research and go into this with some sort of plan. You need to budget for yourself and find out what the rules and requirements are for your area. You’re your best advocate. Don’t trust anybody else to be watching out for your best interest except yourself. This can be a very cutthroat business at times and it has driven away many a new owner. Go into this deal knowing that. If you can get past that then know that this is one of the oldest and greatest sports you could ever get involved in. People have compared this to being like an addict, the more you get the more you want. Instead of sitting on the couch and talking about “my team did this..” you are the owner of your team!
So you want to own a racehorse? Well there are some things you need to think about before you go out there and try to buy your Seabiscuit or Secretariat. You need to think about; location, what you can afford, are you going to own your horse 100% or in a partnership, taxes and even try to look down the road to when your horse no longer can race.