Equimark Yearling Sale, Sun 15th

Jack Dash, during the time you mentinoed, the worth of the rand was significantly more valuable than it is today when compared to U. S. and European currency.

Barry,

I don't know what your point is, but (anecdotally)
- in 1976 the Rand was worth more than the Pound
- I bought a house for R18.000 and needed a bond
- I bought a brand new Ford Escort for R2500
and until 1981 the Rand was worth more than the Dollar

My point is that this is exactly how far your prize money structure is compared to the rest of the world where good horses are raised and raced.

Barry,

The answer is that 99.9% of SA horses only race in SA, a closed market.
You are the exception, by coming to shop here, very clever (but you knew that already...).

Remarkably, locally our ratio of prizemoney to 'cost' is probably better here than anywhere else.

And all this when the number of punters relative to total population is incredibly small.
It is a miracle we are doing as well as we do.

Barry,

Your SA operation makes money by maximising Rand talent and converting it to $ talent.

The same as BMW's and Mercedes built in Rands and sold in Euros. It's why multi-nationals exist. Clearly sub-sahara Africa cannot compare with N hemisphere countries that have 100's of years of development time more than we have.

Let me rephrase the 1974 exercise:
1974: Maiden win paid 5.7 months training
2009: Maiden win pays 6.3 months training

1974: Gr1 win paid 11 years training bill
2009: Gr1 win pays 9.5 years training bill

So my conclusion (which is in response to Lipps' comment on the cost of horses and current stakes) is:

1. 35 years ago and today the person who wants to race horses is in relatively the same position, not withstanding that EVERYONE seems to think that owners are now worse off.

2. Ten years ago I (easily) sold horses for 40K, and at the sales on the weekend 65 lots was sold for 40 and less. It was a select sale with correct horses higher than average.

So the facts indicate that the stakes/training expenses are the same and horses are cheaper to buy, and that has been the case for a few years now.

Not at the top end, but 'racing' doesn't care how much rich people send on their luxuries, and racehorses are a luxury to most people the way champagne is a luxury to everyone except those who make their livings from it.

This was an earlier post I did on the subject of owning horses in SA.

On the subject of horses looking forward to York this week, was speaking to a few punters/owners from overseas and I know we are always complaining about S.A. but just consider the following.
Keeping in my positive frame of mind,I still say we are spoilt when we go racing locally, if you consider the facilities, cost of food etc, and to do the same overseas it costs an arm and a leg.
I was given the following info and I stand under correction? We pay R5,000 per month for a horse and if it wins a maiden we get R40,000, enough to keep it in training for 8 months.
In the U.K. and States it costs 1,200 GBP per month and the Maiden win is 3,000, not enough to cover 3 months.
I am sure this can become a hot topic on the Forum, but please give me your views and comments, plus you may have some more facts.
It is still my belief that we still have plenty opportunities in S.A. to bring more people into the racing game, especially if you consider the prices at the sales over the last couple of days?

This was one of the replies from Jim a member of our syndicate and who has invested in SA horse flesh.

Posted by: Jamster ()
Date: August 18, 2008 10:03AM

Dave, and that £1200 is with a small trainer - I believe the average is around £1500 and the 'biggies' want in excess of £2k+ (R30k!)

Not forgetting that to get an avg Horse, decently bred = £30-50,000 and running as you say for around the same winners purse!

People think I'm mad for owning SA Horses, I personally think that I'm ahead of the curve!

Quite simply in SA 'we' (4 owners) 'bought' and 'Stable' our Horse for what it cost for only ONE Leg in UK, running for the same money!!!

Of course where it does differ is if your Horse ends up semi-decent in the UK, you run for over R300 for a good handicap as opposed to R100-150k here. And if you have Group Class than the money gets 'extreme' - lol!

In which case, you win what you can in SA and then test against the best @Dubai, Oz, UK or USA ala Jay Peg, Sun Classique JJ etc.

Respectfully, Jim.

To Jack Dash - We can probably speculate and hypothesize endlessly about 'cost of keep' relative to the 'old days' but there are a number of factors which have crept in over the years which ( in my opinion as an owner since 1978 ) have made ownership a LOT more expensive since way back when :

1.) In former years trainers did not add an additional takeout from win/place stakes to the monthly bill. This practise crept in when stakes went through a period of stagnation. So now they both raise keep costs and continue to take an additional percentage from rising stakes.

For the record this additional amount was supposed to provide presents for grooms. I doubt whether these full amounts are passed on..........

2.) Vets costs have escalated out of all proportion to other associated costs. A common procedure such as a gelding cost about R500 10 years ago. It is now about 4x - 5x that figure although this may vary from centre to centre.

3.) The financial process of horse ownership is now 'ring fenced' so a moderate horse can quickly become an after tax cost. This means it is effectively costing 40% more to keep than an earner.

There are a handful of other minor additional costs but I can assure you that it is relatively more expensive to own than it was when I started. Comparatively it might make more sense to indulge oneself with alternative 'toys' such as a sportscar which will generally pan out as quite inexpensive by comparison!

Garrick,

excellent points.

I believe a study was made and sent to the WP owners and trainers where an international owner showed that veterinary expenses in cape Town were his most expensive (significantly) in the world over period of 2 years (incl East, UK and USA). Apparently they were going to look for input from the veterinary council although I never heard a word (normal).

As I read your post though, I repeat that every stable is full, noms are full, fields are small...ummm...don't know what you make of that? Do we NEED more owners or horses (or more racing)?

Garrick,

Just shows what a lucky man you are,you own horses and a sports car

Garrik does that ring fencing not only come into force after 3 years of losses?

how do you figure they subsidizing, adios?
what do they get for the subsidy?

I'm an owner, curious to know who I'm supporting.