Did you Know Nearly 90% of All Revenue Received by LRF Flows to the Entire Horse Racing Industry?
Posted by Gary Fenton on March 7, 2017
There are many benefits to owning a share of a Little Red Feather racehorse. First and foremost, you can expect a first-class communal experience owning a championship quality thoroughbred with hands-on management and incredible client communication.
What you probably didn’t know is the tremendous contribution to the entire industry that flows from each investment. While the industry used to speak of the mark-up associated with a syndicate purchase, an inside look at the numbers tells a much different story. One that shows how much syndicates add to the bottom line of the entire horse racing industry.
Since each partnership lasts on average 2-3 years, almost 90% of every investment goes directly back into the horse racing industry.
Here are the global numbers.
To begin with, LRF purchases a championship quality thoroughbred, usually from a breeder or auction. LRF currently has 51 horses. The purchase price of each horse goes directly to breeders and consignors and sales companies, not to mention the added expenditures using our industry leading bloodstock agents and advisors. If each partnership lasts 3 years, add another $50,000 per year, per horse, in training expenses ($7,500,000). LRF does not mark up expenses so this pass through money flows directly to trainers, vets, ferries, and the excellent staff of each horsemen.
And that’s just the hard and trackable money from LRF.
NOT INCLUDED is, of course, the added starts for racetracks. Since 2010, only four owners have made more starts in Southern California than LRF, which is averaging more than 100 starts per year.
With these starts comes increased attendance at each race track from our partners (and their family and friends) and the added handle revenue generated they otherwise might not have laid out. Not to mention the money spent in hotels and restaurants in places like the City of Del Mar traveling to see their horses run.
When you add all the revenue and jobs created by a Little Red Feather partnership, it’s easy to see what our partners bring to the entire horse racing industry. Thankfully, racetracks such as Santa Anita and Del Mar recognize and appreciate the support. With their help, LRF partners are now treated like the regular owners they are with first-class owner seats and all-access passes to the backstretch. We like to say this will be the most exciting investment you ever make. And believe us - IT IS! But now you can also feel good about the tremendous industry contributions made with each investment.
Topics: Opinion Piece