So youīve dug deep into your pockets, taken the plunge, and purchased a racehorse. Congratulations...that was a down-payment.

As with owning any piece of valuable real property, the fact is that there will be ongoing up-keep costs on your steed: insurance, daily training, physical "maintenance and repair," extra expenses for special occasions (such as race day), and, of course, the inevitable "dues to Caesar" in the form of taxes. Part of assuring yourself a non-traumatic experience as a thoroughbred racehorse owner is knowing what expenses to expect - and making sure you have the money to meet them.

Most of the "big-ticket" expenses are noted and explained elsewhere in this manual, but for easy reference (and arithmetic), everything youīre likely to be paying for is listed below.

These figures are laid out so that you can, if you wish, prepare an operating budget for each horse in your stable. "Cost Management" is recognized, even by experienced owners, as one of the great enigmas in racing - and, unless you have bottomless pockets or donīt care much for business - it is a crucial exercise, one to be undertaken thoughtfully and monitored regularly. Cost management seems to derive from an axiom in so-called "Murphyīs Laws" which says, "work expands to meet available budget": So, to some extent, do all the costs of keeping a racehorse.

No "fixed" rate schedule actually exists for anything mentioned below (with the exception of taxes, some jockey fees, and your particular trainerīs Workerīs Compensation premiums). Apparently, costs are set by what the market will bear. Proof of that is the differential between rates in Northern and Southern California (Northern California costs, across the board, average about 1/3 less). Given this condition, an owner might want to be prepared to negotiate each item of cost in order to achieve a balance between expense and earning potential of the horse. Dollars, whether tens or hundreds, can be shaved off every kind of bill, and close supervision of what is "required" can save the astute owner perhaps thousands of dollars a year.

TRAINERīS DAY-RATE:
A free market that ranges from $25-$95 per horse per day, depending on locale and the trainerīs "win" record.

FARM DAY-RATE:
$6-$35 per horse per day (the occasional alternative to your trainerīs day rate.)

INSURANCE:
Usually in the form of a "Mortality Policy," the premium runs approximately 5% of each horseīs value, and includes transportation insurance on your horse (in the event it is killed or injured in transit) within the contiguous United States.
Workerīs Compensation Insurance (your "stableīs" share of $20+ per each $100 of payroll in your trainerīs barn) will either be billed separately to each owner by a trainer, or (more commonly) indirectly passed on to you as part of your trainerīs day rate.

TAXES: Every January 1st, your horse(s) - like all real property - will be assessed a county tax based upon its category of use (i.e. yearling, broodmare, stallion, racehorse). This is a flat fee, and generally will not be more than $150.
Also, any corporate or partnership taxes appropriate to your stable (and the cost of tax preparation and filing) must be figured into your overall "tax bill."

A pleasant note: The federal government permits thoroughbred owners to declare depreciation on the value of their racing stock. The allowance is 200% (declining balance) over a 3-year life on "horses other than 2-year-olds." Donīt forget to put your accountant onto this trail...

VETERINARY FEES: Most owners find a $200-$300 bill per horse per month, which includes pre-race Lasix injections, "vitamin jugs," and "scoping" to examine the horse for signs of nasal capillary bleeding after a race or a strenuous workout. The other possible costs are for X-rays, drugs, surgeries, serious injuries or illnesses.

FARRIER (HORSE-SHOEING):
Your horse must be re-shod about every 4 weeks. "Regular" shoeing includes hoof trimming and runs about $85-120 per horse (the price depends on your locale and the farrierīs expertise). The addition of shoe pads (usually on front feet only) is $10 per pair. When it comes to "special" or "remedial" shoeing and procedures, farriers - like dentists - will charge according to their reputation, experience and what the local market will bear. The following are the most common procedures and their price ranges:

"Bar shoes" (for horses with developing hoof cracks) - $50- $100 per shoe, applied instead of "regular" shoes.

"Quarter Crack Patches" to repair serious (and inevitable) hoof cracks - $250-$350 per patch, and in addition to "regular" shoeing.

"Stickers" or Mud Calks (to give extra traction if your horse is to run in the mud) - $50.00 and up per pair, whether front, back, or both. The variable here is a time charge, since the farrier also has to come around to remove the stickers, and he may be across town when that time comes. (Note: stickers are not usually allowed in turf races.)

RACE DAY: Jockeyīs Fee - Flat $40-$100 (determined by the size of the purse). If your horse comes in first, the jockey receives, instead of a fee, a percentage of your share (see chapter on "Jockeys" for these percentages).
Pony to Post - $20.00

Lasix Shot (if applicable) - $15-$20

"Jug" (special vitamin shot, sometimes before race day, sometimes after) - $20.00

"Bute" (phenylbutazone injection), sometimes before race day, sometimes after - $10-$15

Premarin injection (if applicable) - $10-$15

Endoscopy of nose and throat (for "bleeders", but not necessarily after every race) - $50.00

If the horse wins a purse: state taxes, track percentage, and percentages to trainer, barn, and sometimes the jockey (all variable).