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Stone Street Farms - Horse Racing

Autor:   •  July 27, 2016  •  Case Study  •  549 Words (3 Pages)  •  782 Views

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[pic 1]

STONESTREET FARMS: MAKING A

BUSINESS IN THE

“SPORTS OF KINGS”

[pic 2]THOROUGHBRED HORSE RACING INDUSTRY

Thoroughbred horses refer to any breed of purebred horse, which result out of selective breeding. Thoroughbreds are considered “hot blooded" horses that are known for their agility, speed and spirit.

Thoroughbred horse racing industry

Racing

Breeding

The owners just own the horses which would race for a time period and then either sale them for breeding or breed themselves


The owners would own stallions or broodmares and would ensure some great horses would result out of the breeding

Acquiring race horses

Bloodstock Agent(%)

Auction house(%)

Weanling

Two years old

33,444

39,982

Yearling

52,213


RACING INDUSTRY BASICS

[pic 3]

Training and racing

Trainer

Veterinarian

2500*30

Racing

Purse money

10,800Racingfee

6,400Vanningexpense

20%Jockeyand trainer

!st (60%)

nd2 (30%)

rd3 (10%)

[pic 4]BREEDING INDUSTRY BASICS

BREEDING INDUSTRY

STALLION STATIONS

  • Top stallions sold in third yr.
  • 150,000-250,000 per breed
  • Typically 60 shares for each stallion
  • Each share accompanied by one season
  • Can cover as many as 120 mares in a year
  • Ensures mares are high quality

BREEDING FARMS

  • Mares contribute more to the foal
  • Owner could sell the foal
  • Could sale the broodmare before it gives birth
  • Cherry-pick best foals for home-bred
  • Mostly negative cash flow and depends on occasional high valued foal

[pic 5]CHANGING DYNAMICS

It used to be that you would breed horses because you wanted to take them to the track. Now, you’re taking horses to the track because you want to breed them

...

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