Do you dream of owning a racehorse and, someday, winning the prestigious Kentucky Derby? If so, you're probably curious about the financial rewards that come from such a prestigious victory. In this article, we’ll explore the monetary benefits of owning a winning horse at the Kentucky Derby and what it means for the horse's future career.
How Much Do Horse Owners Make For Winning The Kentucky Derby Table of Contents
Understanding the Kentucky Derby
The Kentucky Derby is one of the most famous horse races in the world. Held annually in Louisville, Kentucky, it's an iconic event that attracts the finest thoroughbreds and jockeys. The 1¼-mile race is held at Churchill Downs, and because it's the first leg of the Triple Crown (preceding the Preakness Stakes and Belmont Stakes), the Derby is considered the most important race in the series.
Purse and Prize Money
Each year, the Kentucky Derby has a significant purse (the total prize money given to race winners and participants), which has steadily grown over the years. In 2019, the purse increased from $2 million to $3 million. The prize money is distributed among the top five finishers of the race:
- First place (winner) - 62% of the purse
- Second place - 20% of the purse
- Third place - 10% of the purse
- Fourth place - 5% of the purse
- Fifth place - 3% of the purse
Thus, with a purse of $3 million, the winner of the Kentucky Derby earns a whopping $1,860,000.
Stud Fees and Future Earnings
It's not just the immediate prize money that's lucrative - a win at the Kentucky Derby can have long-term financial benefits as well. Once a horse retires from racing, they often become breeding animals, known as studs (for males) and broodmares (for females). Kentucky Derby winners often have extremely high stud fees (the price an owner charges for the right to breed with their horse).
Famous winners such as American Pharoah and Justify, who both claimed the Triple Crown, have stud fees of over $200,000 per mating. By comparison, less successful racehorses might command fees of only a few thousand dollars.
In addition to stud fees, a Kentucky Derby winner may gain significant value if their offspring prove successful on the track. The more accomplishments a horse's descendants achieve, the higher their market value becomes.
Sponsorships and Endorsements
A Kentucky Derby win may also lead to sponsorships and endorsements. In some cases, racing teams or individual horses have partnerships with companies that provide financial support in exchange for advertisement rights and branding opportunities. Though most of these deals are largely dependent on individual circumstances, they can still provide a lucrative income for the horse owner.
How Much Do Horse Owners Make For Winning The Kentucky Derby Example:
Take, for example, the 2018 Kentucky Derby winner, Justify. After claiming the Triple Crown, Justify retired with total career earnings of over $3.7 million. Additionally, Justify's owners negotiated a breeding rights deal worth $75 million, with his stud fee set at $150,000 per mating.
This is just one example of how winning the Kentucky Derby can reap financial rewards for horse owners far beyond the prize money awarded on race day.
Owning a Kentucky Derby-winning racehorse is not just prestigious; it can also be an incredibly lucrative venture. From the immediate prize money to future earnings through stud fees, endorsements, and racehorse progeny, a win at the Derby sets your horse up for a lifetime of financial success.
If you found this article insightful and are interested in learning more about owning and caring for horses, be sure to explore other guides on How to Own a Horse. Don't forget to share this article with fellow horse enthusiasts and aspiring racehorse owners!
