Also in this playlist...
This transcript is automatically generated
This -- video a couple of big horse races not just the Belmont which got a big -- actually England as well -- let's talk about the Belmont and big brown this phenomenon horse which.
They become the first horse to win the Triple Crown since affirmative back in 1970 but really how much is big -- word.
And you want to make an investment in a race Schwartzel find out what its ability Scotland.
Oppenheim horse breeding expert and columnist for thoroughbred daily news' bill thanks very much for joining us.
You and I we're chatting on the phone settings I was surprised to learn.
That it doesn't matter right -- big brown wins because his owners of kind of already locked him into a set fee structure for for Britain right.
Yes cavorting Brian well there could be alterations in that depending on how -- performed but yes the big deal's been done.
The valuation is said to be reported to be fifty million dollars.
So if it wins or loses there to get fifty minute.
Yeah I believe so I mean this sometimes you'll see contingencies where the price goes up that they do something more but rarely does it go down so.
Yep I think we're talking about a fifty million dollar horse and really that's the same valuation.
That was placed on -- of last year when a percentage of him.
Hey bill -- -- to make Dow and that's kind of goes to stopping you done work on is that the real money.
In the horse business is in breeding it's not an actually the racing part of it -- Yet if that is correct day in and it's a thing that most people who know anything about horse racing casual race goers really have no idea about.
But look at it this way if big brown wins the Belmont he'll be an undefeated winner of 3.3.
Million dollars in purse money.
He's already been to the his breeding rights have already been sold for fifteen times that over fifteen times that amount.
-- a valuation of fifty million dollars now why is a horse worth fifty million dollars it could be because he's a good -- -- He has to be a good race horse to be worth that kind of money there is a general -- relation between form.
And and value but the big money is on the breeding side of the business there's there's no doubt about.
You know one of the -- bill are big brown that consortium is trying to start up a hedge fund to invest in horses.
It's not a good idea is that it very risky business to take pieces of horses or take pieces of -- breeding.
Yes the reason why breeding is considered a better -- financially than racing is this.
Only about 8% of the horses that make the racetrack in North America actually pay their way and make money so the odds are about eleven and a half to one against you.
In the on the breeding side of the equation.
There's an awful lot happening that people don't know about for example big brown himself.
Was sold twice before he ever got to the racetrack once as a yearling for 60000 dollars.
He was what we call -- -- which came from tobacco.
The tobacco industry years ago.
And resold by different people is a year as a two year old for a 190000.
They -- and after he won his first start to impressively on the racetrack.
He was the IAE AH people bought it may have -- reported valuation of three million dollars so.
They can make they can increase a lot they can make a an awful lot of money in that regard.
But the problem is the odds against making money on -- ray source are stacked against you only 54%.
Of the investment in resources is recovered.
That money's going to the ancillary industry journalists like myself -- but surely do that.
What did you mostly -- have far more to the breeding industry I assure you.
-- bill so -- don't get finished I thought -- have a quick question that well it's just gonna say.
If you've got affordable and -- odds and -- still everything in the horse business is a gamble from what we used to call what you dollar better to this level of playing -- it.
And if the -- in doing something on the breeding and sales side of the equation where you do have a lot of opportunities.
For the horse to be traded before it reaches raising -- major report reaches the racetrack.
Those -- are four to one the -- -- -- race sorcerer eleven to one in the returns are relatively equal let us say.
-- which you gonna do well that's why one of the reasons why more people are getting into breeding and racing these days.
How much quickly bill how much first single mating.
For big brown assuming he does win the Triple Crown and you're saying and that if -- -- -- Good luck making your money back perhaps.
You can't of -- you can't because what happens is.
You may only make money one out of four times but if you make five times the money that you've got invested in the four of and then -- bait money and that's really how it works.
It just works a little better on the breeding -- in the racing side but the consensus among professionals right now is he's a 100000 dollar stallion.
Whether he wins the Belmont or not.
Oh very quickly bill it big brown hurt you think -- lose this weekend.
I think on all -- form he should win but.
Casino drive is definitely a danger and what a story he would be because he'd be the third consecutive Belmont winner out of his -- Which is something you know -- should be unheard of so he's the big danger but if he walks his beat from what we've seen so far he should work.
Bill Oppenheim in -- Dundee Scotland bill.
Thanks very much great stuff -- the lot we pre.
Filter by section