Buying a Thoroughbred Racehorse

As an owner of a thoroughbred racehorse, there’s no better feeling than ending a day at the track in the winner’s circle. All the decisions you’ve made have proven to be the right ones. Your athlete has achieved what fewer than 1% of racehorses will ever accomplish. In that moment, you’ve curried fortune’s favor and cracked the mysterious puzzle that is thoroughbred horse racing.  

If you’re new to the racing industry, a fan looking to start your own horse racing legacy, or a seasoned pro who wants to build your thoroughbred portfolio, buying a thoroughbred racehorse is easier than you might think. 

A horse is a living, breathing animal with a personality all its own. When you purchase your horse, you’ll form a bond stronger than you may expect, and you’ll experience the entire world of horse racing through a new lens. You will have graduated from a spectator to a participant.  

The thrill of owning a racehorse—and winning races—is a feeling that’s second to none. If you’re thinking of investing in a thoroughbred, you can’t fully anticipate the joy and reward of becoming part of the horse racing tradition.

Using a Bloodstock Agent When Buying Thoroughbred Racehorses

No one knows where the next champion will come from. Born and raised at Mill Ridge, 2005 Kentucky Derby winner GIACOMO was given 50-1 odds going into the race — the second-biggest long shot winner in the Kentucky Derby’s 131-year history.

The horse that finished 2nd, CLOSING ARGUMENT, had been given even higher odds, at 72-1. 

GIACOMO had stout competition. A horse named BELLAMY ROAD had won the Wood Memorial a month earlier by such a wide margin (over 17 lengths!) that many spectators figured him a shoe-in for the next Kentucky Derby winner. In fact, BELLAMY ROAD’s trainer had four additional horses in the 2005 Derby, but none of them came close to winning, and BELLAMY ROAD ended up placing sixth. 

All this to say, your horse might be the next out-of-nowhere superstar, and horse racing loves an unknown. 

Working with a bloodstock agent can help you find a horse with good potential and help you handle the dramatic swings of horse racing. 

Bloodstock agents know the thoroughbred horse racing industry backward and forward. They understand the complexities of thoroughbred bloodstock, how to find the right racehorses for you, when to buy and when to sell, pedigrees, and how to breed thoroughbreds to bring out the characteristics you want.

Because of their deep knowledge, you’ll always see bloodstock agents at horse auctions and private sales advising and acting on behalf of horse owners—even the most experienced owners. No matter what level of horse ownership you have, a bloodstock agent can help you make the most of your investment.

Types of Racehorse Ownership

Becoming a part of the traditions that come with racehorse ownership is an exciting new step, whether you’re a casual fan of the track or a seasoned investor. Joining the echelon of owners isn’t just a shot at the winner’s circle, it’s an invitation into a world of travel, community, experiences, and friendships. 

Owning a racehorse that loves to compete, react, and win on the track can be the most thrilling investment of not just your portfolio, but of your life.

There are a few ways to get started, depending on your expectations and commitment.

• Partial Ownership – A partial owner is part of a group of people who collectively own the racehorse. Everyone in the group invests a set amount of money. In some partnerships, the amount of ownership is not always equal. One owner may own 50%, and another two owners may both own 25%. How much you invest into a horse depends on the cost of the horse and the percentage of ownership you will have.  

Partially owning a racehorse with a group of friends puts you that much closer to the action on race days, and it’s more fun to celebrate when your horse wins or finishes in the money.

• Sole Ownership – If you decide to purchase a racehorse on your own, then you are considered the sole owner of the horse. You can join the circle of owners in the sport of kings, but be prepared to spend more for sole ownership of a thoroughbred racehorse. The joy of sole ownership is standing shoulder to shoulder with horse racing's elite—and winning. 

As the sole owner of a thoroughbred racehorse, you’ll have all the decision-making power in how it’s raised, where it’s trained, and what races it enters. 

• Public Partnerships – In this situation, you may own more than one thoroughbred racehorse and have investors or partners in your thoroughbred racing business. Partnerships like Eclipse, West Point, and Little Red Feather can help manage your fees, accounting, and taxes, as well as offer several member perks. Your investment will be much higher when you own multiple horses and have partners. Similar to partial ownership of a single racehorse, thoroughbred partnerships allow investors to “buy into” an available horse. The horse you are looking to buy into may or may not have investor opportunities.

Public partnerships are one-stop shops who select and manage the horse on your behalf. When you invest with them, you are buying into their team.  

How to Buy a Racehorse

Buying a thoroughbred racehorse is like buying a Ferrari. You can’t get them just anywhere, and there’s an entire process to the purchase. 

You need to know where to look, and what to expect.

Claiming

Every track holds claiming races, where every horse entered in the race is up for purchase—or “claimed”— for a set price. In order to participate, you must become a licensed thoroughbred owner with your state's licensing board. Once you receive your owner’s license, you will work with your bloodstock agent and trainer to select a horse. It’s best practice to work with both members of your team, especially as you learn the ins and outs of the claiming process.

Private Sale

Private sales are just that: private one-on-one transactions between a buyer and the horse’s current owner. A private sale often happens at the track or at a private facility. You or your bloodstock agent will contact the current owner in the hope of viewing the horse with intent to purchase.

Auction

An auction sale occurs at a public location where bidders can view the horses available and place bids. Auction houses like Keeneland, Fasig Tipton, Tattersalls, and Magic Millions host auctions for yearlings, two-year-olds in training, breeding stock and horses of all ages. Before attending an auction, your bloodstock agent will advise you on horses that fit your bloodstock portfolio and investment goals. If you are looking to purchase a racehorse in training, you will communicate with your trainer to ensure you can move your new horse to their stable following the sale.

Don’t Neglect the True Cost

Many people in the horse industry say, “Buying the horse is the easy part. Keeping the horse is the expensive part.” 

Thoroughbred racehorse ownership goes beyond the initial purchase price. You are responsible for ensuring your horse has the best possible care, feeding, stabling, and training. 

As you search for your thoroughbred racehorse keep these costs in mind:

• Boarding your horse. Wherever you decide to board your horse, make sure you know what’s included, like hay, grain, feeding, turning out, bringing in, and other services. 

• Training your horse

• Veterinary care

• Farrier care, like shoeing and trimming hooves

• Supplements, if your horse takes them

• Trailering your horse to races

• Entering a race

• Your jockey

Again, your goals have a big influence on how much it will cost to upkeep your horse. When looking at total costs, boarding costs in general are based on what type of horse you’re boarding and for what specific purpose. 

Boarding a broodmare or yearling will likely cost around $18,000 per year. 

Boarding a foal will likely cost around $10,000 per year. 

Boarding a horse in training will likely cost around $75,000 per year.

What to Look for in a Racehorse

With so many beautiful horses with shiny coats to choose from, you might be wondering what you need to look for in a racehorse. Here are some simple tips to get you started:

• Pedigree – You want your racehorse to do its best, so choosing a horse with a good pedigree is essential. A horse’s pedigree refers to their ancestral bloodline. If the horse’s ancestors were champions or helped produce champions, that contributes to the quality of the bloodline. The horse's father (sire) plays as much of a role in their pedigree as does their mother (dam). Racehorses can be bred for different race lengths. What horse pedigrees interest you will depend on what race distance, surface, and other factors you are looking to have your horse compete. 

• Conformation – Conformation refers to the way a horse is put together—its musculature and skeletal alignment that lends itself to fast, strong, efficient movement. In other words, it’s that magical symmetry that makes a horse athletic. A horse’s conformation is a strong indicator of its potential on the track, and your bloodstock agent will know exactly what to look for. 

• Hooves and Hoof Structure – In horse racing, we have a saying: “No foot, no horse.” All the force generated by a thousand pounds of sprinting racehorse comes down on the horse’s hooves with each stride. The conformation of the hoof must be strong, and the hoof must be kept healthy to ensure a horse’s longevity on the track. 

• Temperament – Racehorses are athletes and will encounter many different sights, sounds, and smells when they compete in races. Look for a horse with an intelligent, confident yet easy temperament who seems to take distractions in stride. You also want to look for a horse who is eager to work hard and who has a competitive spirit on the track.

• Pre-Purchase Exam – A physical exam performed by your veterinarian. During a pre-purchase exam, the veterinarian will perform various tests to help potential buyers understand the current health of the horse. The vet will examine the feet, check joint flexibility, assess for discomfort when trotting, listen to the heart, lungs, gut sounds, and more. It is common practice to have your vet “scope” a potential racehorse. This exam uses a small camera to examine the airway of the horse to ensure there are no major defects. How well a racehorse can move air in and out of its body is essential to its success. Once the exam is complete, the veterinarian will report their findings to you, or if you request it, to your bloodstock agent or trainer.

Don’t Forget Your Love of the Horse

Whether it’s 12 or 20 horses in the starting gate, only one will win the race. The anticipation and excitement you feel when your horse enters the starting gate never gets old. Fates and fortunes change in just a mile and a quarter.

When you take ownership of a racehorse, you become part of the history and the mystery. Your horse has its own personality, spirit, and thirst for speed, a combination of nature and human know-how. With the right team, you can own and race a horse that thrives on competition and puts you in the winner’s circle.

When victory eludes you, your love of the sport and your bond with your horse will keep you on the right track. The more you give your horse, the more you’ll receive.