A Stronach proposal for $12 million race---Pegasus World Championship

[thespaah]

Well, folks. What would you think of a $12 million race where the owners put up an equal share of the purse.
This could be doable....Thoughts?
http://www.bloodhorse.com/horse-raci...del?source=rss

[PICSIX]

Would each of the owners of 12 horses that would compete in a $12 million race be willing to put up $1 million to not only participate but share in all the revenue available from the day's program? It appears one racing company would like the answer.

In a welcome message Jan. 12 on the first day of the Thoroughbred Owner Conference at Gulfstream Park, Frank Stronach, honorary chairman of The Stronach Group, floated the concept of what he called the "Pegasus World Championship," the name of which references the large statue at Gulfstream. The idea, he said is to grab the attention of the media and also experiment with racing's business model.

http://www.bloodhorse.com/horse-raci...del?source=rss

[senortout]

Just checked a chart for the Acorn Stakes. Under the conditions, the purse was $750,000, and the portion contributed by participants, both race starters, and runners who dropped out along the way......this portion of the purse amounted to only $159,750 if my math is correct. And the race entries closed about a week before the race with 33 nominations. 33x 750.00 to nominate equals $24,750. Now it cost $5000, to enter, making 12 entrants x $5000 for another $60,000 and also cost $6250 to start, for 12x $6250 equals 75,000. Adding those up...a total for $159,750 put up by the connections. This leaves $590,250 to be put up by the track to make the stakes total $750,000!

Do you really think you could get 12 owners on this planet to cough up $500,000 each to participate? C'mon. Also, who would even nominate if they knew this slippery slope? If the race ever did go off, it'd probably be on the order of a match race, and the race would in essence be bought, by the richer owner, with a very top drawer runner indeed. Leading to something neither you and, especially not I would like to see, or bet upon.

Oh yeah and I forgot to mention...if there were to be significantly less than 12 entries at post time, the fee would be much more that 500,000! A match race for instance would cost each of the owners six million dollars minus whatever few more horses nominated and whatever fewer entered, etc, etc. The mind boggles. But yeah, Frank, sounds like a great idea!

[Stillriledup]

One thing you know about Franks 'good ideas' is that they won't be anything that benefits the customer or horseplayer, they're just ideas to put more money in the pockets of the horsemen

[Redboard]

I like the idea, sort of. But he's only talking about one race. I'd rather see a Breeder's cup type day at Gulfstream in January(the original BC with seven races minus the Juvy races).

[Fager Fan]

Originally Posted by Stillriledup

One thing you know about Franks 'good ideas' is that they won't be anything that benefits the customer or horseplayer, they're just ideas to put more money in the pockets of the horsemen

Handicappers and owners are the two who support the sport. You shouldn't begrudge your counterpart from making income. The owners lose mor money than handicappers do, and through them everyone from the trainers and grooms to the vets and feed suppliers have jobs.

[Fager Fan]

Originally Posted by senortout

Just checked a chart for the Acorn Stakes. Under the conditions, the purse was $750,000, and the portion contributed by participants, both race starters, and runners who dropped out along the way......this portion of the purse amounted to only $159,750 if my math is correct. And the race entries closed about a week before the race with 33 nominations. 33x 750.00 to nominate equals $24,750. Now it cost $5000, to enter, making 12 entrants x $5000 for another $60,000 and also cost $6250 to start, for 12x $6250 equals 75,000. Adding those up...a total for $159,750 put up by the connections. This leaves $590,250 to be put up by the track to make the stakes total $750,000!

Do you really think you could get 12 owners on this planet to cough up $500,000 each to participate? C'mon. Also, who would even nominate if they knew this slippery slope? If the race ever did go off, it'd probably be on the order of a match race, and the race would in essence be bought, by the richer owner, with a very top drawer runner indeed. Leading to something neither you and, especially not I would like to see, or bet upon.

Oh yeah and I forgot to mention...if there were to be significantly less than 12 entries at post time, the fee would be much more that 500,000! A match race for instance would cost each of the owners six million dollars minus whatever few more horses nominated and whatever fewer entered, etc, etc. The mind boggles. But yeah, Frank, sounds like a great idea!

try adding up the BC and TC races. The Derby, for example, gets $1m in just entry and start fees.

He's floating an idea. It's an interesting one. If each of 12 owners put up $1m, they're not going to scratch so no idea why you think it'd be a match race. What the potential owners need to know is what they stand to earn in other income other than purse earnings.

The buggest problem isn't just finding 12 people to put up the money, but finding 12 who have the horse wirthy if competing. He may not be able to tie the two together.

[Saratoga_Mike]

Originally Posted by Stillriledup

One thing you know about Franks 'good ideas' is that they won't be anything that benefits the customer or horseplayer, they're just ideas to put more money in the pockets of the horsemen

Do you ever stop whining?

[Stillriledup]

Originally Posted by Fager Fan

Handicappers and owners are the two who support the sport. You shouldn't begrudge your counterpart from making income. The owners lose mor money than handicappers do, and through them everyone from the trainers and grooms to the vets and feed suppliers have jobs.

The horsemens income comes directly out of bettors pockets.

[azeri98]

It's a pipedream, if there is a horse out the like AP or Shared Belief you think there are 12 other owners who are going to fork over that amount to race against a superhorse and lose, no way.

[lamboguy]

Originally Posted by Stillriledup

The horsemens income comes directly out of bettors pockets.

every business operates with some type of a profit margin, otherwise they go out of business.

the horse racing game is working on a much smaller markup than the supermarket that you buy your milk and veggies in. the profit margins in drugstores are probably 100 times more than a race track. sporting events, opera, car racing and other things are making bigger percentages as well.

the great part of horse racing is that if you think the takeout is to high, you don't have to play or support the sport.

[Stillriledup]

Originally Posted by Saratoga_Mike

Do you ever stop whining?

Just calling a spade a spade.

[Fager Fan]

Originally Posted by Stillriledup

The horsemens income comes directly out of bettors pockets.

No, it doesn't.

The owner who goes out and spends $10m in yearlings each year isn't doing it from an accrual of purse income he has at his disposal. He's investing money that he has earned from outside of the sport.

He gets back some of that $10m through purse income, but maybe just a tenth. Where he gets back most of his money is through the sale of a stallion or broodmare prospect. That is why it's so important to have a big sale there every few years.

So ultimately, the owner gets back probably 90% of what he does get back (it's not usually 100% of what he spent) from other owners/breeders.

[Fager Fan]

Originally Posted by lamboguy

every business operates with some type of a profit margin, otherwise they go out of business.

the horse racing game is working on a much smaller markup than the supermarket that you buy your milk and veggies in. the profit margins in drugstores are probably 100 times more than a race track. sporting events, opera, car racing and other things are making bigger percentages as well.

the great part of horse racing is that if you think the takeout is to high, you don't have to play or support the sport.

This is why I've had a hard time relating to the handicappers like riled.

Do they not realize that they are a customer of racing, just like we're all customers of all the many other products we buy?

It doesn't even occur to me to be pissed at the local grocery store that they're making money in order to stay in business. If I find their prices too high, then I'll go to another grocery store. I don't have some God-given right to stamp my feet and throw a tantrum because I happen to be one of their customers.

[SuperPickle]

I'm just not convinced any owners who wasn't already a billionaire would put up the money. I think the Middle Eastern royalty and Coolmore might but I don't see people who own horses like Liam's Map (who ducked the Classic) and California Chrome or even Runhappy would put up the money.

The best story lines in the sport generally are around either modest horses or modest owners. If you exclude all of them and this is well bred horses owned by billionaires racing for millions they don't need I think it becomes uncompelling...

How about this for a better idea...

A mile and a quarter invitational that in even years is dirt odd turf. The purse is a revenue share. Owners go partners with the track like sports leagues and players. You divide invitations reasonably among horses in Europe, N.A., Asia and Oceania.

You figure the derby has a $130 million bet on it. Let's say you can get $120 million through global simulcasting and marketing. At 18% takeout you get $23 million. More than enough to fund a $10-12 million winner take all purse.

If you can get the handle on it up to $150, $200, $250 million you can make a truly insane purse. If can get people in Hong Kong and Australia to bet on the race you can get a massive purse.