Quote:
Originally Posted by classhandicapper
I would assume foal crops are down because the economics of breeding/owning are not good enough to encourage more of both.
IMO, if more owners were doing well, the demand for horses would rise. Breeders would supply them if the demand was high and they could get the prices they need to justify their investments.
The economics of owning are related to costs and purses.
The industry handle has been shrinking for years in "real" terms (inflation adjusted handle) but costs are rising. So despite some consolidation and casino money for some tracks, the benefit has not been enough to offset the overall trends. I think we are sort of treating the problem when we actually need major surgery.
The one thing I'll never understand is why so many owners are willing to pay so much for horses when most are losing their shirt. I can see paying a small premium for the joys of ownership, but the economics are pretty bad for most.
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If the current purses at the bigger tracks aren't enough to get more owners, I don't know what the answer is. Places like Oaklawn, New York, and Kentucky are absolutely through the roof. There are obviously some deeper, complicated issues.
