The way how racing horses trainers are making money is still unclear. There’s actually no concrete and accurate answer to this question because their income is greatly influenced both by the runner’s success on track and other business endeavors. As a matter of fact, majority of the trainers are relying on various streams of income in order to make a living. Regardless, here are some of the means in which racing horses trainers are generating money.
Number 1. Purse Percentages
Traditionally, trainers are receiving a percentage of earnings that are awarded to horses that has finished third, second or first in the race. This money is then directly transferred to them from the purse account of the track. The purse earnings may be a big percentage of income of the trainer and the trainer can truly bring home big money if their horses have performed well in prestigious stakes. Believe it or not, this ranges from several hundred thousand to millions of dollars.
Number 2. Day Rate for Horse Trainers
Trainers are charging per diem for every horse that’s kept in their stable. As for this rate, it may include the basics similar to feed, stall, the use of tack and stable equipment, grooming, exercise rider and all other small incidentals. The owners are then billed for care from the farrier or veterinarian, jockey fees, medications and several expenses that aren’t included in day rate. As for private trainers who are only training horses for one owner could be compensated on a given set of salary.
Number 3. Work as Bloodstock Agent
These racing horses trainers do represent themselves to clients at evaluation of prospects, bidding in sales pavilion and the actual sales as well. They might even scout prospects that they do see in the racetrack. In either scenario, trainers do get a commission based on the sale price. As for the fee, it is typically 5 percent from the purchase price.
Number 4. Breeding Rights
It is pretty common among owners of good colts to give trainers with lifetime breeding rights. As a matter of fact, this is the free breeding every year for their choice of mare and this right may be resold throughout the years in which the trainer doesn’t have mare of their own to breed. The breeding rights to the major stakes winners may be valuable because some stallions have a commanding fee of over 100,000 dollars and that is per breed.
Number 5. Operating a Racehorse Rehabilitation Facility
An injured racehorse might have to be on stall rest for following months after mishap and bringing them to racing stature could be a tedious and long process. They have to be removed from the track stalls of the trainers and have to be shipped elsewhere throughout the time. While there are several commercial businesses that are offering rehab services, majority of the trainers have their own facilities where they could supervise care throughout the process of recovery. Rehab care could be expensive and injuries are normal in this industry. Thus, this is a great niche of business to tackle.