What’s the priciest thing in a racehorse? And it isn’t its value

Islam Zween

Islam Zween

I’m sure that the American Scat Daddy never imagined when he gave birth on March 28, 2015, the incredible journey that his new born son Justify would take to become at the very young age of 9 a multi-millionaire with a net wealth of $75 million.

I’m talking here about one of the greatest race horses in history and his impressive undefeated career that came to retirement in 2018. His dad died prematurely at the age of 11, just 9 months after Justify was foaled and bred in a farm in Kentucky.

Like father like ‘horse’, Justify’s ancestors including his father Daddy won numerous races in the United States. Justify’s achievements, including the impressive win in the Kentucky Derby at only two-year-old, has won him a prestigious place in the National Museum of Racing and Hall of Fame, which was founded in 1950 to honour horses, jokeys and trainers.

But the successive owners of Justify knew that they had something very special in Justify, which’s actually the priciest thing in a successful racehorse. It isn’t his value, but rather it’s his sperm. Science has shown that speed in horses is hereditary.

The economics of horse racing then isn’t only about the prize money, of which Saudi Arabia is singled out as hosting the richest race in the world, the Saudi Cup, with a total prize money next year reaching $38.1 million.

The more wins means the more valuable the horse is. And after the winning horse retires in good shape and injury-free, it’s used as a stud for the next generation of superb descendants who are much sought after from investors from around the world.

A typical stallion can mate with 100-150 mares a year and incredibly for a decade, while the investor charges per mate. The cost of breeding to a stallion depends on the stallion's quality and career success. For example, a stallion with a successful racing career like Justify may charge as much as $700,000 per mating.

So the owner of a stud like Justify can make millions of dollars in just a few months, let alone the money earned during the horse’s race career before retirement. The owner actually could earn the money spent on buying a promising horse at age of 1 or 2 in just one or two races as well. A very good return on investment, isn’t it? Ask any owner and they’ll be sure to tell you that seeing their horse win is one of life's greatest delights.

However, paying for upkeep and jockeys does not come cheap. The ownership comes with many costs chiefly the purchase fees, which can hugely vary from tens of thousands to millions, registration, training, insurance and racing expenses including transport.

The ownership of a racehorse requires a great deal of investment in time before money. Like other investments, one needs to have patience and also be able to deal with frustration and disappointment, as good genes are no guarantee of success.

Just like us humans or literally human athletes, racehorses can suffer from injuries, which are a great setback to the owner and investor, as science says it’s difficult for some racehorses to recover from even some injuries that appear in a later stage like tissue injuries, respiratory conditions and gait abnormalities.

So, owning a racehorse is like owning a masterpiece or a rare piece of art. When people spend millions on art, they are usually thinking of it as an investment. They might genuinely love the work of art and enjoy having it on their walls for years to come, but they expect to be able to recoup the cost later on down the road.

However, some racehorse owners especially in our Arabian Gulf are not in this business for money. The love of horse is ingrained in our beautiful Arab culture. They genuinely love the horses even if they fail to earn back their costs or make it to the finish line.