Graded Stakes Winning Owners - Dennis Albaugh, Albaugh Family Stable (Catching Freedom)

Before he could afford to buy Thoroughbreds, Dennis Albaugh had to succeed in business.

And though the start of his one-truck company out of his garage in Ankeny, Iowa, in 1979 was an utter disaster that nearly wiped him out, Albaugh preserved and now owns the ninth largest agricultural chemical company in the world, selling in 44 countries and manufacturing in nine.  

Though he grew up on a farm with a couple of riding horses, he was intrigued with agriculture: “I was always intrigued that you can spray crops with chemicals to protect them.” After two-years of college, he worked for a chemical company for three years. When the company asked him to relocate his family to Birmingham, Alabama, he declined. “I started my own company,” he said. 

That wasn’t easy. “I had to convince my wife to take a second mortgage on the house,” he said. She agreed. “She trusted in me, I guess,” Albaugh said.

The second mortgage allowed Albaugh to receive a $10,000 loan from the Small Business Administration. “It was very tough, I was very new in the business. It was a start-up company.”

 He purchased an old oil tanker, bought weed-killing chemicals from a company in Des Moines and delivered them to a company in South Dakota on his very first run. “It was a 200-mile run,” Albaugh said. “On the way up, I thought this truck was running smoother and smoother.”

He reached his destination. “I put the hose in the receiving tank,” he said. “Nothing was coming out. I opened the lid. It was empty. I said, `Oh, boy, I just spent $8,000 of my $10,000.’ It was very scary.”

The seals on his truck had failed, and he had dumped his entire load on the trip. “I called the Department of Agriculture and told them I dripped chemicals, but nothing toxic,” Albaugh said. “They said, `Thanks for killing all our weeds.’”

Telling the Department of Agriculture was easier than telling his wife what had happened. She asked him, “How did your first delivery go?”

He told her. She didn’t blink.

Undeterred, Albaugh got a couple days' leeway from his buyer in South Dakota. He quickly bought a new truck and made the same delivery.

And then he grew his company. In 1993, he bought his company’s biggest competitor. “We really soared after that,” he said. “I don’t know the word `no.’”

His incredible success in business mirrored his ongoing success with Thoroughbreds, which also had humble beginnings after his son-in-law Jason Loutsch, who is now Albaugh Family Stables Racing Manager, nudged him into the business. Last year, the stable had three runners in the Kentucky Derby including the favorite, Angel of Empire, who finished a fast-closing third. This year, Catching Freedom has them returning to Louisville on the first Saturday of May.

Loutsch still can’t believe it: “Growing up, my best friend had a horse farm two miles from Prairie Meadows,” Loutsch said. “We made believe we were jockeys.”

Loutsch bought a horse, Mr. Mingo, in 2003, and shared the experience with Albaugh. Mr. Mingo finished second in a $59,000 Iowa-bred stakes in his second start for his new owners. “Dennis said, `This is a lot of fun. Let’s get more horses,’” Loutsch said.

They did, buying a half-share of a two-year-old Trippi filly for $42,000 at the Ocala Two-Year-Olds in Training Sale in June, 2005. They named the filly Miss Macy Sue for Albaugh’s granddaughter, and gave her to trainer Kelly Von Hemel.

“She took us all over the country,” says Loutsch, “Then she turned into one of the best broodmares in the country. It really got our juices flowing.”
Albaugh said, “It was unbelievable. We went around the country and she kept doing well.”

Their talented filly won 11 of her 25 starts, including the Grade 3 Winning Colors Stakes at Churchill Downs and five other stakes. She had five seconds and three thirds, including a third in the 2007 Breeders’ Cup Filly & Mare Sprint at Monmouth Park. She earned $880,915.

But she wasn’t done making money. She produced Liam’s Map, who had six wins and two seconds in eight starts, earning $1,358.940,  Matera, a four-for-10 winner who earned $309,040 and Taylor S, who went three-for-seven and made $121,518.

Tired of not racing her talented progeny, Albaugh bred her to Giant’s Causeway and named her colt Not This Time. After finishing fifth in his debut, he won a maiden race by 10 lengths, the Grade 3 Iroquois Stakes by 6 ¾ and finished second by a neck to Classic Empire in the 2016 Grade 1 Breeders’ Cup Juvenile.

He’d already made $454,183, but he didn’t race again. He’d hurt a tendon in the Breeders’ Cup race, making his performance even more impressive. Retired to stud, Not This Time finished 2023 as the eighth leading stallion with $13,223,548 in progeny earnings. He stands this year at Taylor Made Stallions for $150,000. “He pays a lot of bills,” Albaugh said.

 Along the way, Albaugh and Loutsch began an earnest pursuit of racing’s greatest prize, the Kentucky Derby. In 2016, their Brody’s Cause finished seventh. The next year, J. Boys Echo was 15th. In 2018, Free Drop Billy finished 16th. Dale Romans trained all three horses.

Last year, Angel of Empire, trained by Brad Cox, was third and Cox-trained Jace’s Road, owned in partnership with West Point Thoroughbreds, was 17th. Albaugh Family Stable and Castleton Lyons-owned Cyclone Mischief was 18th.

Catching Freedom, who is trained by Cox, has them dreaming again. “This is the 150th Derby,” Loutsch said. “We know how hard it is. It’s extremely hard to win. There are so many things that have to go right. There are so many factors going into it. This horse definitely wants to go a mile and a quarter. Hopefully, we’re fortunate enough to get a good trip.”

Albaugh said, “Just to get to the Kentucky Derby was a big honor. Having three horses last year was unheard of. We checked the history. We think that’s the record. We’re very thrilled to get back this year.”

Family is an integral part of Albaugh’s life. Loutsch and Albaugh’s daughter Tiffany have two girls, Julianah, 24, and Milan, 18. “They’re in charge of social media,” Loutsch said. “They go to all the races.”

Asked how hard it is to work for his father-in-law, Loutsch said, “Not hard at all. He’s truly one of the best guys in the world. He makes life real easy. No ego. Most importantly, he is fair and honest. He’s invested a lot in the game. We have a lot of fun together.”

Albaugh said, “My son-in-law got my interest going, it’s a whole family. It’s a lot of fun to go with all your family, it’s a lot of fun to get together.”

Especially if it’s in the winner’s circle on the first Saturday in May.

Graded Stakes Winning Owners - Eric and Sharon Waller (Stronghold)

Though Eric Waller was 10 years old when he accompanied his father to Santa Anita, he never really felt connected to Thoroughbreds.

His success with Barranca Insurance, which opened in Rancho Cucamonga in 1972 and is now run by his daughters, allowed him to purchase a couple of horses.

“Not Thoroughbreds,” Waller said. “One was a Paint, and one was a Quarter Horse. I wanted horses to ride. I thought that might be fun. It was at that time I realized I did feel something special about horses. I didn’t realize that was inside of me until I bought those horses. I found inner calmness and appreciation for the animal.”

That would be tested after he bought and began breeding Thoroughbreds. His early struggles and then continuing success on the track was tempered by horrible happenings trying to develop a broodmare band. But the Wallers never gave up and they now have a home-bred Kentucky Derby contender, Stronghold, a horse they can proudly point out traces back to four generations of their own Thoroughbreds.

Despite two of their stars dying while giving birth. Despite two mares who savaged their own foals.

Asked how he got through the rough parts, Waller said, “I wish I could tell you. I’m not a quitter. I believe someday, somehow, I’m going to get me a Grade 1 winner. I feel that was my goal. I hadn’t achieved it, so I couldn’t quit.”

Stronghold, who won the Grade 3 Sunland Derby by 2 ¼ lengths in an impressive three-year-old debut, added the Santa Anita Derby April 6th in his final prep for the Kentucky Derby. He is already the Wallers’ highest earner. Stronghold’s dam, Spectator, is second and Stronghold’s third dam, Swiss Diva, is third.

The Wallers’ entrance into Thoroughbred racing was disappointing. “My wife knew a retired jockey,” Waller said. “He had an old mare. She was in foal to a stallion named Lucky Sack. I went ahead and took the mare. I didn’t know anything about racing. I had that foal and decided to race that foal. That was about 1995. Of course, I didn’t have any success. I said, `I’m going to try a different route.’ There was a sale in California, Barretts. There was a mare in there by the name of One Stop. She was by Mr. Leader, in the family of Distorted Humor.”

One Stop is the fourth dam of Stronghold.

One Stop won just one of 19 starts and made $34,985. Waller bred her to Swiss Yodeler. The resulting filly, Swiss Diva, is the third dam of Stronghold.

Swiss Diva won her first three starts, including a $138,000 stakes for California-breds, by 8 ½ lengths, then finished fifth by 4 ½ lengths to superstar Rags to Riches in the Grade 1 Las Virgenes. Swiss Diva finished her 14-race career with four victories, three seconds and earnings of $240,399.

Put into perspective, the Wallers had won just seven of 76 starts from 2002 through 2013.

Envisioning a foundation broodmare, Waller bred Swiss Diva to Henny Hughes. Swiss Diva died foaling Diva’s Tribute. Though unraced, Diva’s Tribute is Stronghold’s second dam. 

Bred to Jimmy Creek, Diva’s Tribute delivered Spectator. She won three of her first four starts, including the Grade 2 Sorrento Stakes at Del Mar and was second to Midnight Bisou in the Grade 1 Santa Anita Oaks. Spectator retired with three victories, one second and one third from nine starts with earnings of $323,951.

“Spectator died giving birth to her foal,” Waller said. “A punctured colon. I was just sick. There are just so many lows in this business. There’s nothing lower than losing a horse.”

But the foal who survived was Stronghold. “Stronghold grew up on a nurse mare, just as his mother did,” Waller said.

“The people at Mulholland (Mulholland Springs Farm, where Stronghold spent his early days) told me this horse was a man among boys, a very classy looking individual that shows a lot of quality,” Waller said. “I took that seriously because these people are commercial breeders. They see hundreds of yearlings.”

In April of his two-year-old second, Stronghold was sent to California-based trainer Phil D’Amato, who had a string of horses in Kentucky. “Stronghold cast himself in the stall,” Waller said. “We wound up missing several weeks of training. Then, finally, things returned to normal.”

Stronghold finished second and first in a pair of maiden races at Ellis Park and Churchill Downs, then finished second in the Grade 2 Bob Hope Stakes to undefeated Nysos at Del Mar. He was second again by a half-length to Wynstock in the Grade 2 Los Alamitos Futurity.

Stronghold’s handy victory in his three-year-old debut in the Grade 3 Sunland Derby sent him soaring up the list of Kentucky Derby contenders. His sensational :58 2/5 work should have him moving forward as he tackles tougher opponents.

If all this is exciting, Stronghold doesn’t seem to notice. “He’s so quiet in the paddock, Phil thinks he’s sleeping,” Waller said. “He doesn’t turn a hair.”

Gamely bulling his way through horses, Stronghold won the Santa Anita Derby by a neck, giving Waller his ultimate goal, the one he stuck to despite all the heartache. “The Santa Anita Derby was our first Grade 1,” Waller said. “That’s why I’m in the business. It’s not about the money anymore, it’s about the achievement.”

And his determination. Achievement can’t happen if you give up.

State Breeding Incentives for 2024 - on a state by state basis

Article by Ken Snyder

Nineteenth century British Prime Minister Benjamin Disraeli gets credit for coining the phrase “there are lies, damned lies, and statistics.”

Jockey club statistics showing the 2022 foal crop to be 18,200 in the U.S.—down from 19,200 in 2021--might come under the heading of “damned lie.” (Numbers for 2023 aren’t in yet.) 

The phrase is a caveat or admonition to not jump to conclusions with questionable deductions and pronouncements to what, in truth, are damned lies. First, the industry isn’t going over a cliff with foal counts. It operates in a free-market economy. There are gains and losses, “bubbles” when artificially high prices exceed real value, and “corrections” when prices drop to what they should be. 

With foal count, horse population, and racing in general, there are positive, remarkable achievements. In Pennsylvania, the state has experienced increases in foal count and anticipates more. Okay, it’s one state, but it belies that belief that the sky is falling.

Here are the numbers for PA in registered foals: 2017-549; 2018-606; 2019-623; 691 in 2020. Yes, there was a dip in numbers when a former governor attempted to raid the Racehorse Development Trust Fund (2021-593; 413-2022). But, said Brian Sanfrantello, executive secretary of the PA Horse Breeding Association, the foal count has bottomed out and the breeding industry should return to increasing foal numbers with a new governor. Further, five new stallions have come to the state for breeding in 2024.

A Stallion Series is a crown jewel of a breeding program that makes Pennsylvania breeding and racing literally worthwhile. Launched in 2022 it offered $600,000 in purses for stakes races for PA-bred two-year-old colts and fillies over two days of racing. On the first race day, colts and fillies raced for $100,000-dollar purses each. On the second day, they ran for $200,000. The Series attacked one problem for PA breeders and appealed to those out of state. 

“It’s costing forty thousand to fifty thousand dollars from the time you breed the mare to the time the horse races,” said Sanfrantello. “We’re trying to get the money back to the breeder as fast as possible.” 

The means this year, in addition to this Series, are eight two-year-old stakes races, four of which are for PA breds. For non-Series and other races, breeder awards are 40% for PA-sired horses (compared to 20% for non-PA-breds). “If it’s a fifty-thousand-dollar race, the winner would get sixty percent of the purse or thirty-thousand dollars. Plus, if it’s an open race not restricted, there is a forty percent owner bonus added to the purse or twelve-thousand dollars for total earnings of forty-two-thousand dollars for owners. A breeder-owner would get an additional sixteen-thousand eight-hundred dollars. The total? Fifty-eight thousand, eight hundred dollars.

The stunner is what breeder awards have totaled. The most striking example? Uptowncharlybrown won two of thirteen starts  and $125,000 in his career but he has earned in breeder and stallion awards $869,080.

Virginia, with twenty-seven race dates in 2023 at the Commonwealth’s lone racetrack, Colonial Downs, is obviously at the other end of the spectrum from year-round racing in Pennsylvania and other states. However, the Virginia Thoroughbred Association, of which Debbie Easter is executive director, is outdistancing any other state in how fast they are growing their racing industry.

We said, ‘What the heck, we may not be the biggest breeding state any longer, but what we can do and what we do have are farms and the training centers to raise horses.”

Starting basically from scratch when Colonial Downs re-opened in 2019 after closing in 2013, the foal crops had gotten down to a rock bottom, one hundred. This year Easter projects the crop will be 160, a 60% increase. Small potatoes in the general scheme of things but not the only means of building racing. 

“Starting this year, we’re paying for first, second and third anywhere in North America if you’re a breeder and bred a horse in Virginia,” said Easter. “By us paying win, place and show in North America all year long, that makes our program year-round. That’s a big advantage, we think, over other breeding programs. You don’t have to race in our state to get our money.” The award is 34% of the earnings added to the purse. Historical Horse Racing (HHR) generates the award money, which has increased the breeding fund from $500,000 to $2 million dollars in five years. 

Virginia has also initiated a “Certified Program” which covers a horse registered by The Jockey Club and conceived and foaled outside of Virginia, but residing in the state for at least a six-month consecutive period prior to December 31st of its two-year-old year.

“Our Certified guys are averaging about eight months or so a year here. We’re bringing in almost nine hundred horses in a year. We’ve grown the population of Thoroughbred horses in the last five years faster than we could ever have done it breeding horses. It absolutely saved our farms and training centers and the infrastructure that supports those farms.,” said Easter.

The big development with New York is state-bred, 2024 foals will run for the same purse amounts as open-company races. This year at Saratoga, maiden races restricted to two-year-old New York breds ran for $88,000 compared to $105,000 for two-year-olds in open company maiden races. ”It’s something that breeders in NY and horsemen who compete with NY breds have been advocating for a long time,” said Najja Thompson, executive director of the New York Thoroughbred Breeders.

Thompson added that this year there are also increases for New York breds whether sired by state sires or sired outside the state. For 2024, breeder awards are 40% for first place, 20% for second place, and 10% for third place, with a $40,000 cap award. Last year’s awards were 30% for first place and 15% for place and show finishes. A cap per award remains at $40,000.

Maryland’s biggest innovation this year is a two-tiered system, one tier for Maryland-sired and Maryland bred horses, and a second tier for Maryland-breds only. The system will begin with 2025 foals. “We are going to have a two-tiered system to try and reward MD sires as they do in Pennsylvania and other states,” said Cricket Goodall, executive director of the Maryland Horse Breeders Association.

Maryland’s best days will be when the $385 million Pimlico project is completed to rebuild the track from the ground up and also add a training center, according to Goodall.

“I think that you have to have a look to the future to be competitive,” said Goodall. She compares the project, which is projected for completion In what Goodall projects as “four to five years” to New York’s investment in Belmont Park. “Maryland is looking to be one of the states that is investing in racing and breeding.

Meanwhile, Goodall said Maryland is one of the states where stallion books have gone up this year.

Kentucky, of course, is the kingpin of American Thoroughbred breeding. While foal crops nationally have declined, Kentucky, from 2012 to 2021 increased in registered foals by just under 10%. Of the five top states for registered foals—Kentucky, Florida, California, New York, and Louisiana—Kentucky was the only one without a decrease in those years.

Strangely, the number of yearlings sold in North America in 2023—8,303, increased from 8,061 in 2013. That doesn’t correspond to decreasing foal crops. 

The principal reason for the overall decline in foals is increasing expenses, according to Duncan Taylor, senior Thoroughbred consultant and co-owner with three brothers of Taylor Made Farm just outside Lexington, Kentucky. “Costs just keep increasing, and they increase for all horses the same. I’m talking about daily board rate in Kentucky. The last eight years, probably, it has gone from thirty-five thousand to forty-five thousand dollars.” 

Vet care has gone up as well. “I had a mare that had to have a C-section. My bill was twenty-two thousand dollars,” he added.

“People can’t stomach these expenses on a less expensive horse. You got a million-dollar horse, you think ‘I’ve got a shot at getting it back because I could sell a five-hundred thousand, six-hundred-thousand-dollar yearling out of that horse.’”

The upshot is competition for the better horses offered in sales--what Taylor calls “more supply of a higher quality.” But what that also means, he said, is “It pushes the people in the lower part of the market out.” Hence, fewer breeders and foals.

Kentucky is awash in cash, which Taylor believes could stem the trend toward continuing foal crop decreases nationally. “All the purse money that is available to race for now, if it stays as good as it is, I don’t think we’ll continue to decline.”

Societal and cultural issues—challenges beyond, perhaps, the reach of horse racing as a sport and industry—are also factors in foal crops. Times have changed.

“At one time in this country, most of the large racing stables were owned by the kings of industry, with the horses coming from their own farms,” said Kent Barnes, former stallion manager at Shadwell’s Nashwan Farm in Lexington who currently directs the stallion division of Spy Coast Farm also in Lexington. “Unfortunately, in many cases, successive generations have either not shared in the passion, or had the wealth to carry on with these large operations, and most of these stables have been either dismantled or severely diminished.“

Duncan Taylor echoes Barnes’ observation. “The underlying condition is not enough people are in love that much with horses to where they want to have a big farm and raise them and then sell them. The condition is less breeders and that goes along with the declining foal crop.”

Ideas abound, some feasible, some not, some fantasy for getting foal crops back up. 

Evan Ferraro, director of marketing for Fasig Tipton, sees a breeding counterpart to racing syndicates as a potential answer. Racing syndicates both large entities and small, are popular. If there’s a way to encourage breeding syndicates that spread risk, they could be appealing.

Breeding to sell rather than race could be incentivized, according to Barnes. “I believe financial obligations are the primary barrier preventing more breeders from racing their own product.  A few years ago, several stallion owners came up with novel approaches to help the breeder decrease their risk going into the sales. Perhaps this same approach could be extended to allow breeders who choose not to sell to mitigate some of their risk going into racing. Stud fees could be deducted from race earnings. To make it more attractive to the stallion owners, there could be a sliding scale where they earn a higher percentage based on the horse’s performance.”

No matter the challenges, there are obviously bright, experienced, and energetic people at the controls of parts of the racing industry—people like Evan Ferraro, Debbie Easter, Brian Sanfrantello, Kent Barnes, Duncan Taylor and many more.

There is another phrase that may have application from someone who quoted Disraeli‘s phrase about statistics: Mark Twain. He said famously, “Reports of my death are greatly exaggerated.”

Racing is not dying. It is changing. And in everything, change is inevitable.

Where do we go from here?

The strange, but positive thing encountered in examining the declining foal crop and reasons for it, is that everyone interviewed had a different response to this question: What is the first thing you would do if put in charge of the industry? There were no limits put on the responses; the answers ranged from the completely improbable to things right under the industry’s nose. Even better, they span most aspects of racing from fan development to breeding.

First things first: fans. Empty grandstands on race days are par for the course and maddeningly accepted. To drive on-track attendance, Evan Ferraro, offered a simple, but great idea for weekends. “Open up the infields. Let people come in there. Let them bring their own stuff.” Add musical entertainment and things like face-painting for children or pony rides, and …voila, a family event for Saturday and Sunday afternoons. Stack that up against a $15 beer, $10-dollar hot dog, and $10 parking for a major league baseball game. Throw in a premium—cap, cups, etc.--and a free afternoon picnicking at the racetrack looks like a great day out. For racetrack management resting on laurels and reluctant to loosen purse strings fattened by off-track wagering and purses funded from casinos or Historical Horse Racing (HHR) machines, they could find a sponsor to add their logo to the racetrack’s giveaways. 

Ferraro added a familiar lament to his idea: “I don’t think we market our sport well anymore.

“I don’t think you can promote ‘our safety numbers are better.’ You gotta sell the races. That’s what has to drive everything to me. Create some familiarity and give customers a good experience.”

Add to all these things a focus on the “stars.” As recently as the 1970s and 1980s National Basketball Association playoff games were tape delayed. The sport, quite simply, was “meh”… until Larry Bird and Magic Johnson came along. This past year Cody’s Wish provided the public a truly moving story both on the track and more important, off the track in the horse’s relationship with the late Cody Dorman. “There was never a story by the major networks about Cody’s Wish,” said Ferraro. Thoroughbred racing has been silent since “Go Baby Go” was seen and heard on televisions more than twenty years ago. “Public relations,” anyone? 

Kent Barnes, sees a connection between attracting fans and foal crops: “The only way we could ever consider increasing our foal crop is if we can somehow get more end-users involved in the racing game. There is more and more competition out there every year for the public’s entertainment dollar and somehow, we have to attract back the fans, which increases the handle, thereby increasing purses and attracting owners.”

On another subject, the failure of a 140-mare cap for stallions in the U.S. frustrated Barnes, a respected and published researcher on the demise of sire lines and resultant inbreeding. He said, “I was disappointed in their reversal of the cap decision because I feel that if we limit the number of mares bred to each stallion, this ensures that the top stallions are getting the very best mares and also allows second-tier stallions to prove themselves by getting an increased number of mares.  

“There is no doubt stallions that failed to make their mark could have done so with enough mares of quality to prove themselves.”

Bloodstock agent Clark Shepherd pointed out the obvious without a 140-cap limit: “We’re limiting the gene pool. I get handed these mares that are fantastic on the racetrack, and they [clients] want me to do a mating for them. But when I sit down and do a mating, the mare’s bred like a stallion. So now what? It limits my choices.”

Here’s where foal crop numbers really might be, as British Prime Minister Disraeli said about numbers and statistics, “damned lies,” at least according to Shepherd. “I don’t know that a declining foal supply is a bad thing just because of supply and demand,” he said. “For the last three years, I’ve been waiting on the shoe to drop, and we keep going on this upward trend. 

“To me, it’s supply and demand.”

One factor in decline in foal numbers is, Shepherd said, “mom-and-pop” breeders leaving the business unable to afford stud fees for what he called “ultra-stallions.” “They don’t have the mares good enough to get into first-year stallions.”

Whether good or bad, Shepherd points to what he believes is an issue and factor in foal declines. “There’s a lot of mares, even stallions, that don’t need to be in production. If it’s a resulting decline in foal crop because of that realization, I’m okay with it. We’re striving to breed better horses and there’s less of them, and that creates more demand. It could be a good thing.”

On the issue of racehorse ownership Debbie Easter identified what she said is both the problem and a solution: “The problem is the owners don’t own the racetracks. Owners own the talent, but we don’t own the most important part of it:  the HHR or the things that fuel the whole game.”

The solution, in her opinion, is the Japanese model: “Owners are able to pay for their daily expenses with bigger purses earned over there.

“You have the cost of the horse and then there’s the daily cost of racing. I’ve always said, I think the guys would forgive the cost of the horse if they could just pay the daily cost…if they didn’t have to take it out of their pocket. I think we could grow ownership.” 

She wonders if there is too much racing. Contraction of the racing industry could possibly be the ultimate answer.

“Everywhere where racing is successful in this country—Saratoga, Del Mar, Keeneland—what do they all have in common? They don’t run year-round. And they’re in destinations where people want to come.” They also have capacity crowds.

Duncan Taylor, added a novel and, in truth, a not-to-be idea for horse owners. If he were commissioner and it was feasible “I would start purely an owners’ organization and it would be only owners with racehorses while they were running.

“I think they have the most to lose and the most to gain in an entrepreneurial way for improving the sport and not the mediocre management of the racetracks. I would try to get that group of people [owners] to actually buy the tracks.”

Answers? Solutions? Some are immediately viable from this story. Some are unlikely. And some are in a “perfect world” that won’t exist. 

There is, however, one thing on which everyone can agree: racing needs ideas.

State Incentives 2023

Article by Annie Lambert

The bad news is, North American inflation has substantially increased expenses in Thoroughbred racing. The good news is, U.S. purses in 2022 were up nearly 11% from 2021. Also, states and farms are working to provide owners and breeders an opportunity to counter those growing costs with healthy incentive opportunities. 

State Pluses

U.S. inflation rose to a shuttering 9.1% last year, but it has dropped to the current 6.5%. Canada’s most recent number was 6.8%. Both numbers, although improved, still leave horsemen pushing higher outlays across the board. Breeders, owners and trainers can help buffer inflated costs with readily available incentive programs.

Mary Ellen Locke, registrar and incentive program manager for the California Thoroughbred Breeders Association, cited there are no changes to that state’s programs for the current year. As one of the most successful state organizations, the CTBA has seldom tried to fix what is not broken.

“I think [our program] has helped sustain our numbers through Covid and the economy being down,” Locke pointed out. “The numbers of Thoroughbred foals are down all over, but we are holding our own in California.”

The association’s definition of a Cal-bred is one thing helping California retain those foal numbers. Cal-breds are those foals dropped in the state after being conceived there by a California stallion. Or, “any Thoroughbred foal dropped by a mare in California if the mare remains in California to be next bred to a Thoroughbred stallion standing in the state” will be classified as Cal-bred. If the mare cannot be bred for two consecutive seasons, but remains in California during that period, her foal will still be considered a Cal-bred.

The Pennsylvania Horse Breeders Association is offering a new race series for two-year-olds in 2023, according to Brian Sanfratello, the group’s executive secretary. The Pennsylvania-bred series offers three stakes for fillies and three for colts.

“The first two races will feature purses of $100,000 to be run during Pennsylvania Day at the Races at Parx Racing,” Sanfratello offered. “The second set will have purses of $150,000 and will also be held at Parx the day of the Pennsylvania Derby; and the third in the series will feature $200,000 purses at a track to be determined.”

Trainers of the top three earning horses will be rewarded with bonuses of $25,000, $15,000 and $10,000.

In addition, Penn National has increased their owner bonus to 30%. The racetracks in that state pay for owner bonuses. 

Virginia has been on a roll since passing their historical horse racing legislation in 2019. Last year, according to Debbie Easter, executive director of the Virginia Thoroughbred Association (VTA), Colonial Downs averaged $612,000 in daily purse monies.

The Virginia Racing Commission approved an additional nine days of racing for the current year. Colonial Downs, the only live racing venue in the state, will run Thursday through Saturday from July 13 to September 9.

“Thanks to Historic Horse Racing (HHR) machines in Virginia, breeding, raising and racing Thoroughbreds has never been better,” according to Easter. “In 2023, the Virginia Breeders fund should double to over $2 million thanks to funds received from HHR.

Virginia breeders currently earn bonuses when Virginia-bred horses win a race anywhere in North America. If pending legislation passes the Virginia General Assembly, breeders will have an update for 2023. They will earn awards for horses placing first through third in North America.

“Because of budget constraints that limit the Virginia-Certified program to $4 million in both 2023 and 2024, we have made changes to our very successful program that pays 25% bonuses to the developers of Virginia-Certified horses that win at Mid-Atlantic region racetracks, which includes New York, New Jersey, Pennsylvania, Delaware, Maryland and West Virginia in addition to Virginia,” Easter added. “The plan is to increase funding for the program once Colonial Downs adds more HHR locations and machines, hopefully in 2024 and 2025.”

Iowa and New Mexico may not produce the largest annual foal crops in North America, but they each had Breeders’ Cup contenders last year. 

Tyler’s Tribe (Sharp Azteca) headed to Keeneland undefeated in five starts in his home state of Iowa to contest the Breeders’ Cup Juvenile Turf Sprint (G1). Unfortunately, the then two-year-old gelding was eased into the stretch after bleeding. He did regroup to finish third at Oaklawn Park just a month later in the Advent Stakes.

After challenging the inside speed during the Breeders’ Cup Filly and Mare Sprint (G1), New Mexico-bred Slammed (Marking) finished out of the money. Although the now five-year-old mare has not run since, her previous earnings of $557,030 (13 starts, 9-1-0) give her credibility as a broodmare prospect.

With the majority of Breeders’ Cup contenders raised on Kentucky bluegrass, mare owners may want to start watching for options in Iowa and New Mexico.

Bonus Bucks

Eclipse Thoroughbred Partners launched in the fall of 2011. Their ability to acquire, manage and develop runners and put together partnerships is quantified by their gross earnings of $42,561,789.

Eclipse President, Aron Wellman, sees the value of state-bred incentives and makes use of them, although his first order of business is finding the right horses.

“We are going to buy a horse because we like the horse,” Wellman confirmed. “If we buy something eligible for regional programs, we take advantage of them.”

The group’s Chief Financial Officer, Bill Victor, notices incentive earnings on his bottom line. “Breeder incentive programs are important to any stable.”

Spendthrift Farm continues to enjoy their fruitful and much copied programs. This year, Safe Bet will feature Coal Front (Stay Thirsty) standing at $5,000. If Coal Front does not produce at least one graded or group stakes winner by December 31, from his first two-year-old crop the mare owner will owe no stud fee. If he produces a stakes winner, the normal fee will be owed.  

Share the Upside features Greatest Honour (Tapit) for 2023. The breeder sends a mare to this stallion, has a live foal and pays the $10,000 fee. That foal entitles the mare owner to a lifetime breeding to Greatest Honour, an annual breeding share, with no added costs. Greatest Honour is, however, sold out for this year.

Both these Spendthrift programs minimize risks and offer great value, especially to smaller breeders.

Canada continues its successful Ontario Thoroughbred Improvement Program (TIP) with a current budget of $800,000. 

The province’s Mare Purchase Program (MPP) provides breeder incentives to invest in and ship mare power into Ontario. Foal mares—purchased for a minimum of $10,000 (USD), with no maximum price, at a recognized auction outside of Ontario, but produce 2023 foals in the providence— are eligible for a rebate. The rebate is for 50% of the purchase price up to $25,000 (CAD) with a limit of $75,000 (CAD) per ownership group. Mares bred back to a registered Ontario Sire in the 2023 breeding season are also eligible for a $2,500 (CAD) bonus.

The Mare Recruitment Program (MRP) incentivizes mare owners who bring an in-foal mare to Ontario to foal in 2024. Owners will receive a $5,000 (CAD) incentive for each in-foal mare brought to Ontario. The mare must not have foaled in Ontario in 2022 or 2023. MRP is for mares purchased at an Ontario Racing accredited sale in 2023 and must have a minimum purchase price of $5,000 (USD).

Breeders of record are eligible for additional bonuses through TIP. Specific details on the MPP and MRP programs criteria are outlined in the applicable criteria book.

The Struggle Is Real

Minnesota’s only Thoroughbred racetrack suffered a low blow recently when their 10-year marketing agreement with the nearby Shakopee Mdewakanton Sioux community expired without renewal. The track will be racing fewer days this year to keep purse amounts competitive without the additional funds.

The former agreement forbad Canterbury from supporting additional gaming legislation in the state; they are now free to push for sports wagering and slots of historical horse racing machines. 

Canterbury Park’s Thoroughbred 2023 stakes schedule will feature twenty-four races totaling $1.65 million in purses.

Texas Thoroughbred has one of the most innovative breed associations in the United States, especially for a state that has suffered setbacks over the decades. Their plan to promote Texas racing through public relations was a great success last year and will continue through this year.

“A series of events are conducted at Sam Houston Race Park, Lone Star Park and in connection with the Texas Two-Year-Old in Training Sale and the Texas Summer Yearling Sale,” said Texas Thoroughbred Association Executive Director Mary Ruyle. “Last year, this initiative resulted in forty-two new, first-time Texas Thoroughbred racehorse owners, equating to slightly more than $300,000 through participation in the Texas Thoroughbred Racing Club and private purchase connections set-ups.” 

Due to Texas’ stance on the Horseracing and Integrity Act (HISA), the Texas Racing Commission does not send out their racing signal unless it is out of the United States. When HISA was enacted July 1, 2022, they only had 14 days of the meet remaining. This year it has hindered their purse structure and the Accredited Thoroughbred Awards, according to Ruyle.

To resolve the problem, they have begun running races earlier in the day, rather than in the evenings, to draw more spectators and handle. They also made a deal with Woodbine to export their signal to Canada.

“At this moment, the purses are essentially the same,” Ruyle said. “As we get into the meet, we’ll see if we are able to sustain that.”

All Thoroughbred racing states within the United States, along with provinces in Canada, have some deals to incentivize breeders. Researching states of interest can provide the means to fend off these inflationary times in North America.