Wednesday, June 1, 2016

Income and Expenses through April 30

I've kept this as basic as possible so that no one needs a degree in Financial Accounting.

It simply presents the INCOME derived from the 2 horses thus far and the EXPENSES that the Racing Club members have paid out.
This itemization will give you a good sense of what to expect should you decide to take the plunge yourselves.

We have 87 members x $250 which gave us $21,750 to "play with" and is pretty much the equivalent of covering 6 months training plus some incidentals.
Century Downs put forth the money to purchase the 2 horses, the transport costs to bring Rap out west plus any registration costs (stable name, etc.). Any monies recouped from the sale of the horses will be returned to Century Downs.

As you can see our day-to-day operations are hurting a bit. It's difficult enough to rely on one horse to keep your stable going. We had hoped that having two would give us a buffer but fate was not on our side.
Once Southwind Luna gets back in action hopefully she can pick up some nice cheques for us between now and August 21.

BLUE = Training Costs normally associated with any horse and any trainer you might employ. Our amounts fluctuate based on if the horse is stabled and training here on-track or less if it is 'turned out'/boarded at the farm. We pay a per diem rate that includes the associated costs of a trainer's labour and use of equipment, feed, grooms, assistants, bedding, etc. Most tracks with on-track stabling charge trainers a monthly fee that includes amenities such as waste removal. This may already be factored in to the trainer's rate.  I notice that Gerry seems to be absorbing the transportation costs. That may vary from trainer to trainer. Any trainer may have some charges that are or are not negotiable.

GOLD = Outside Veterinary Costs are billed directly from the veterinary clinics and are for major work such as dental, X-rays and diagnostics and of course, surgery, etc.

ORANGE = Commissions are standardized at 5% of the purse monies won and are earned by both the driver and the trainer. If the horse does not cash a cheque the driver earns a $20 flat fee. We also paid a winning bonus of flat $30 to Rap's groom, Chelsea.

GREY = HRA licence for Century Downs Racing Club. We were able to negotiate a standard flat-rate that covers ownership licences for all owners involved in a Racing Club.

GREEN = There is no entry fee for most horse races, these are called 'overnight races'. Named races with larger purses are generally referred to as stakes races. The term 'stakes' comes from horse-owners putting up their own money (staking). There are some big important races you have to start paying nominating fees into while your horse is still a foal! That's followed by a series of sustaining payments to keep him eligible to the specific races you've chosen to stake to. That is the reason the biggest races can have such large purses -- hundreds, even thousands of horses (owners) continually contributing to the pot as long as they think their horse is possibly good enough. If you are buying/selling yearlings you want to make sure that the horse is well-staked because you are presumably searching for that GOOD one, the jewel. right?
That said, there are some lesser stakes that allow you to nominate in the same year (late-closers). When Rap was racing well, there were a few coming up this summer that we had decided to pay her up to. It doesn't appear that will work out for us but we'd have been kicking ourselves if things had gone differently!

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