CARAWAY RACINGOwners - do you wonder where your day rate money goes? We interviewed several medium sized racing stables in Kentucky to come up with an average breakdown of the rate paid by owners per horse for training services. The breakdown is based on a 10-12 horse stable, which if keeping costs as low as possible could manage with 1 rider, 1 hotwalker, and 2 grooms. Most stables have horses coming and going all the time, therefore contract labor is often used to supplement staff on salary (it's a rare rider or hotwalker who can work with 10 horses/day; 5-8 horses/day per rider or hotwalker is more realistic). Some trainers gallop horses themselves which is a big savings in exercise rider fees. Note that groom cost per horse is higher because a groom works with less horses than a rider or hotwalker (3-5 horses/day per groom is common).
typical costs per horse per day in Kentucky and can vary by several dollars/day - the numbers here are on the LOW END of the range, and are current for 2004 :
- $12 - exercise rider
- $17 - groom
- $5 - hotwalker
About 20% of the labor cost for groom, rider, and hotwalker is FICA, unemployment, and workers compensation taxes.
- $4 - straw
- $6 - hay
- $3 - grain
- $1 - supplements
- $5 - office/barn equipment and supplies
The total is $53/day. In our research we found day rates in Kentucky that varied from $35-$80/day. The majority of trainers we encountered that are stabled at race tracks and large training centers in Kentucky charge about $60/day. Note that training centers that do not have live racing charge "stall rent", generally at a rate of $5-$8/day per stall.
Other expenses paid by the trainer and usually not covered by the day rate:
- travel and moving expenses
- assistant trainer's salary
- liability insurance
- health insurance
Other expenses paid by the owner that are not included in the day rate:
- farrier
- shipping
- veterinary care, medications, vaccinations, worming
- specialized equipment for an individual horse
- mortality insurance on horses
- liability insurance
Other points to consider:
- Not only do most trainers drive to work in the morning 7 days/week, they also have to drive to the races when not stabled at the active track, and many move their entire stable and their home with the racing circuit several times a year. In order to retain important staff members, trainers have to pay some employees' travel and moving expenses as well. For these reasons travel expenses are extremely high for most trainers.
- For trainers who have exercise riders on salary, the more horses per day that one rider can gallop, the less the cost per horse for the trainer. Similarly the trainer's labor cost will be less if salaried grooms handle more horses per groom; however, each horse in the stable will receive less individual attention if the groom and exercise rider have more horses to work with daily.
- Feed and bedding cost is directly related to quality, and feed/bedding quality directly affects the horse's health and performance so is very important. The cost of hay and straw can fluctuate greatly depending on weather conditions and demand. Most race tracks and large training centers mandate use of straw for bedding, so lower cost bedding options like sawdust on rubber mats is not an option.
- Most racing stable employees and many trainers do not have health care insurance coverage because they can't afford the premiums. Of course this is a problem shared by many small businesses in the U.S. This problem is part of the reason for the existence of horsemen's organizations such as the Horsemen's Benevolent and Protective Association (HBPA) and the Kentucky Racing Health and Welfare Fund.
So you might ask, "how does a trainer make a living?"
Trainers have to make ends meet with purse money, and there isn't much room for error or a trainer will go broke quick. Let's optimistically assume that an average trainer's 10 horse stable earns an average of $20,000/year per horse, or $200,000 in total earnings. The trainer's share of the purse earnings is 10% or $20,000. A major focus of the HBPA is maximizing purse money, since it is what keeps not only trainers, but the whole racing industry in business.
Creative ways that some trainers try to improve the bottom line:
- Owning part of the horses they train, therefore increasing their percentage of purse earnings. This is risky since there is no guarantee that any horse will actually earn money (see stats below).
- Acting as bloodstock agents for their owners, making 5-10% commission on buying and selling racing prospects.
- Owning a farm and breeding for racing or sale, boarding layups and young horses for owners.
Unless a trainer has several high dollar earners in the barn, it's a tough way to make a living. A trainer must be ruthlessly selective of the horses kept in training to ensure that each one can contribute to the bottom line. This is not an easy task considering the statistics below from Thoroughbred Times:
Chances of what any given thoroughbred race horse born in North America might accomplish in its entire racing career:
run in a race: 69%
win a race: 45%
win more than once: 34%
win a stakes race: 3%
win a graded stakes: less than 1%
race at age 2: 34%
win at 2: 11%
win a stakes at 2: less than 1%
*Copied From Race Horse Trainer*