This must be what Chrome’s owner was referring to after the Dubai World Cup. Interesting proposition, we’ll see if he can get quality horses to show up!
http://www.bloodhorse.com/horse-racing/articles/211571/stronach-to-run-12-million-pegasus-world-cup
If it really materializes, it gives Chrome one more race early in the year, then off to stud in good time. I believe it would give them the opportunity for the record of most money won in the world.
My two thoughts reading about the race were nothing short of snarky:
Putting up a $12M purse becomes a less impressive feat when you charge a $1M start fee for each of the 12 entrants.
Was racing’s 1% tired of their overpriced, sales-topping offspring losing to proverbial nags? This race isn’t written to attract the best horses in the world, it’s written to attract the wealthiest owners in the world. How is that beneficial for wagering or for sport?
If ever American politicians need to find a good example of widening income distribution financial waste and mismanagement, and good old boy crony thinking, it is horse racing.
One only need to have seen the private planes cluttering taxi ways at Louisville ’ s airport on derby weekend to understand where Stronach is taking this idea.
Maybe I am just less cynical, but I see this as more of a business opportunity for those who can afford the investment, and less of an exercise in vanity than it may seem at first blush.
If you read the article, it says that for the $1 million investment, you get a place in the starting gate AND you also get an equal share in 100% of the net income from pari-mutuel handle, media rights, and sponsorships from the Pegasus World Cup. You can also decide to lease, sell, etc., your place in the gate (which I would think would go for much less than $1 million without the other residuals attached).
Frank Stronach seems like a pretty smart guy. I am sure he has a lot of things already lined up so that this can be (or maybe already has been) presented to owners as a complete business plan, not just as a race offering. If this race is successful enough as an event, it may even be the case that an owner whose horse runs last can make money on the investment. I guess we’ll see.
I too am anxious to see how it works out. Hopefully it will be a positive and will generate a lot of interest in the sport.
Nelson, those are good points and you are much less cynical to myself.
Yes, it’s an investment… but to me, in today’s racing world, a particular horse race doesn’t seem like much of a tiered business opportunity. How much do the really expect the non-billionaire public to buy in to this from a marketing standpoint? They’re going to be marketing to and sponsoring themselves. And what kind of fields do they expect to draw to drive up the handle? If you’re limited the field to connections willing to supplement $1M for 9 furlongs on the dirt, you’re likely going to exclude a percentage of top runners.
But, maybe this is the direction horse racing will have to go to survive-- pay to play.
Texarkana, I do see your point. I guess we’ll see how it unfolds. I suspect that they are going to try to make it an event, like a small scale Breeder’s Cup. Whatever happens, it will be interesting to watch.
I’m sure someone’s already crunched the numbers wrt the entry fee, purse % to those who finish well enough and what nelson mentioned in #5. So it becomes a decision of whether or not you feel your horse can finish well enough to at least get your money back.
What is FL’s purse distribution percentages? I found this, “In 1975, the state of Florida enacted a purse-distribution format that has had revolutionary implications for the sport of horse racing in the United States: Its adopted plan provided 1% of the purse to all finishers in the race lower than fourth; this meant that the percentages paid out to the horses finishing second, third and fourth (but not first) became variable, depending upon the size of the field. For example, if a race had twelve starters, 60% of the purse went to the winner, 18% to second, 10% to third, 4% to fourth and 1% each to fifth through twelfth; with only six starters the winner received the same 60%, but 20% went to second, 13% to third, 5% to fourth and 1% each to fifth and sixth. This system is still in use at all of the state’s thoroughbred tracks today, although a slight modification in the actual percentages (resulting in the second-place share being increased at the expense of the third and/or fourth) was made in 2005.”
So if you finish in the top 3, with a full field, you make your money back, with a tidy profit in the top 2. At 4th / 4%, you get $480,000. Fees exlcuded.
All 12 starting spots have been sold.
“The group of owners purchasing starting spaces are Frank Stronach, James McIngvale, Sol Kumin,Coolmore, California Chrome LLC, Daniel Schafer, Jerry & Ron Frankel, Starlight Stable, Reeves Thoroughbreds, Jeff Weiss & Rosedown Racing, and Ruis Racing.”
Coolmore can bring AP out of retirement! JUST kidding! :lol:
If we’re looking at a Runhappy and California Chrome match-up this idea looks very intriguing.
Could Runhappy make that distance? He’s struck me more as a sprinter.
Chrome has proven himself 1 3/16 but does he have the sprint in him to win at 9f. And what about the 10 other spoilers? Will be interesting to see the field. Stretching out for Runhappy looks more possible imho.
And I am loosing my marbles… I misread the title as a 10f race not a 10M purse 
Runhappy might make 9f…
Will be interesting and do like that they’ve limited the size of the field.
He may just be buying it for the resale.
I’m a little bummed this replaces the Donn, though I guess that makes sense, especially if they want G1 status right away.
Will they be doing this every year or only one time?
This could be a game changer…
Horses running without Lasix on raceday will be granted a five pound weight allowance.
btw, does this mean Chrome (or any horse that enters for that matter) will not be going to stud next season? Or will we see a new era of top horses using this as a swan song before making a quick dash to the stud row?
The cynical side of me still sees nothing but a million ways that this race can backfire to everyone’s detriment.
The optimistic side of me clings to the hope that the “controlling 12” have enough vested that they pool their resources to attract the best horses and turn this into a premier event.
Are owners going to take a (potentially undeserving) shot at the purse just because they can afford to do so, or are they going to treat this like an investment and work to increase their portion of the kickback?
[QUOTE=Texarkana;8670806]
The cynical side of me still sees nothing but a million ways that this race can backfire to everyone’s detriment.
The optimistic side of me clings to the hope that the “controlling 12” have enough vested that they pool their resources to attract the best horses and turn this into a premier event.
Are owners going to take a (potentially undeserving) shot at the purse just because they can afford to do so, or are they going to treat this like an investment and work to increase their portion of the kickback?[/QUOTE]
I agree with you. If anything, it will be an interesting race, but does it do anything to improve the state of game. Probably not.
I believe Sol Kumin is one of the owners of Exaggerator, so possibly add him to the mix. Could be a VERY exciting event. I am sure the investors will want to make sure it draws the best of the best, and will do what they can to ensure that. It’s exciting to see a new idea in racing!
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