2005 All About Purses

For the first time in recent history, total purses, average purse,
and average earnings per runner all decline

by Mark Simon

IF YOU were selling horses, 2005 was a good year, at least in terms of total sales and average sales price. In the gargantuan yearling market, total sales increased 11.5% from 2004 and average price rose 3.7%. Weanlings had double-digit growth, up 11.1% in sales and 18.3% in average price. Two-year-old sales climbed 11.4%, and the median price increased 3.4%. For those selling broodmares, total sales rose 3.5%, and the average price was up 3.4%.

In a $1.139-billion commercial auction market, those numbers say a lot about buyers' perspectives on the future. Some people spend money at auctions because they believe purses are good and they will have a chance to get a return on their investment. Others spend money because they enjoy the thrill of racehorse ownership and are not as concerned about the state of purses.

For the former group, the data presented in this annual review of purses in North America indicate that the current economic factors of racing are not as bright as it would seem under the spotlight in an auction ring. For the fun-loving latter group, the purse data suggest that it is wise not to fixate on purses.

In 2005, total purses, average purse per race, and average earnings per runner all declined, marking the first time since this study began in 1972 that all three of those key economic indicators took a downturn in the same year. On several occasions, two of those three indicators declined in the same year, but all three declining should be of concern to owners.

The good news is that total purses dropped only 2.4%, and the total remained well above $1-billion. But, when taking inflation into account, total purses took a rather serious 5.1% drop in real dollars. The average inflation-adjusted purse declined 2.8%. The declines in those two economic measures suggest that owners, on average, had a tougher year in 2005 than they were letting on at sales.

The decline in total purses was presaged by the February 1 announcement by the National Thoroughbred Racing Association that 2005 total wagering in the United States on Thoroughbred races dipped 3.4%, to $14.6-billion, from ‘04. The declines in handle and concomitant revenue to purses were offset in part by an increasingly important contribution to purses from alternate forms of gaming, such as slot machines and video lottery terminals, which contributed about $200-million to purses in 2005. It is that contribution that has made many buyers optimistic about the future, with tracks in New York, Pennsylvania, and Florida scheduled to add slots in the next year or so.

In the meantime, the data on 2005 purses in North America suggest that it is still hard for the majority of horses to pay their way, and only a small percentage of runners earn significant sums for their owners. The average racehorse in North America in 2005 earned $15,851, a sum that does not pay the annual training bills for a runner training and racing on a major circuit.

On the other hand, those owners who campaigned a stakes winner or a horse that earned in the top 2% of all runners fared quite well. Stakes winners earned an average of $145,051 in 2005, and 1,284 horses earned $100,000 or more.

Highlights of 2005

Highlights of the data in this comprehensive annual review of purses and runners in North America include:

A total of $1,149,003,138 in purses was distributed in 57,305 races, the fewest races held in North America since 1971;
Average purse was almost exactly the same as in 2004, although it did decline slightly from the record $20,069;
The total number of runners, 72,487, decreased for the first time since 1998;
Average earnings per runner decreased 0.5%, the second time in three years that measure has declined;
Real average earnings per runner-when adjusted for inflation-declined 3.2%, the fifth straight year of decline;
Nominal median earnings per runner-measured in current dollars-increased 4.4%, to an all-time record $6,135;
A total of 5,665 runners-7.8% of all starters-failed to earn any part of a purse;
More than half of all starters-52.9%-failed to win a race;
Horses that were able to win at least one race earned an average of $29,740; horses that failed to win a race earned an average of $3,475;
Horses that won a stakes race earned an average of $145,051;
Horses that were able to win at least one race collectively earned 88.4% of all purse money;
17.3% of all runners earned more than $25,000 and collectively won 67.1% of all purse money;
Stakes races constituted 4.6% of all races and offered 24.3% of all purses;
Claiming races-straight claiming and maiden claiming-accounted for 66% of all races but distributed just 37.1% of all purses;
For runners age three and up, more than half of all races-50.1%-were contested at six furlongs or less;
The average number of starts per horse dropped to 6.5, the fewest ever; and
Average field size declined to 8.2 starters per race, just above the all-time low of 8.1 in 2000.
This is the 33rd year that "All About Purses" has been published. The analysis started in The Thoroughbred Record in 1973, covering the ‘72 racing year, and has been published in Thoroughbred Times since ‘90. As in the past, the data reflect all Thoroughbred purses distributed to racehorses in North America in 2005, excluding Mexico and Puerto Rico, and was provided to Thoroughbred Times based on data obtained from the Jockey Club Information Systems Inc. Steeplechase races are excluded.

Purses down in 2005

The biggest of the big pictures for racehorse owners-total purses distributed in North America-took a downturn in 2005. Total purses of $1,149,003,138 declined 2.4% from the record total paid in 2004. That marks the second downturn in total purses in three years, and the total has not made appreciable strides since 1999, when it surpassed $1-billion for the first time.

The big-picture statistics on racing in 2005, summarizing purses, runners, races, and earnings, are presented in Table 1. The table presents a ten-year snapshot of key statistics. The total purses paid in 2005 is almost identical to the $1.146-billion paid four years earlier. Still, a billion dollars is a billion dollars, and the amount of money spent on racing prospects at auctions in 2005-for weanlings, yearlings, and two-year-olds-was $824.7-million (another $308.6-million was spent on broodmares). Those numbers suggest that owners and breeders see a fairly strong relationship between purses and how much they are willing to spend.

Total purses have increased 35.8% in the last ten years and 73.6% in the last 20 years, from $661.8-million in 1986.

The big picture outlined in Table 1, though, points out several warning signs for owners, as a number of key measures took downturns in 2005. Average purse and average earnings per runner both declined, even though the number of races and number of runners declined to help mitigate the damage.

Average purse of $20,051 was almost identical to the record $20,069 of 2004, but it did decline 0.1%. It is the first decline in average purse since 1991 and only the second decline in that measure since this study started. Average purse has increased 52.3% in the last ten years.

Average earnings per runner declined 0.5%, to $15,851, falling for the third time in four years. That measure peaked in 2001 at $16,159. In the last ten years, average earnings per runner increased 31.9%. By contrast, in the ten-year period from 1991 to 2000, average earnings per runner increased 79.4% as the number of runners decelerated dramatically and purses blossomed with full-card simulcasting revenue.

The number of races in North America declined 2.4%, to 57,305, the fewest number of races since 1971, when 57,219 races were held. The number of races peaked in 1989, at 82,726, and has declined 30.7% since.

Also declining in 2005 was the number of runners, by 1.9%, to 72,487, the first decline in runners since 1998. That dip helped average earnings per runner because fewer horses were competing for purses. Over the last decade and a half, the decline in both runners and races-while total purses continued to increase-helped to fuel the sizable increase in average purse and average earnings per runner. The number of starters in North America peaked in 1989 at 91,436, three years after the foal crop peaked at 51,296.

The largest percentage gain for any key measure in Table 1 was median earnings per runner, which increased 4.4% to a record $6,135. On the other hand, that statistic also means that half of all runners earned less than that amount. Horses that earn the median and are in training for any period of time most likely are not paying their way. Median earnings have increased 55.8% the last ten years.

In 2005, the percentage of runners earning part of a purse increased once again, to an all-time high of 92.2% from 91.5% in ‘04. As we will see later, however, that number is not really significant because a small percentage of runners earned the lion's share of the purses.

Effects of inflation

Table 1 provides the overview of the key measures, and Table 2 adjusts several of those measures for inflation over the same ten-year period. The figures are adjusted using the federal government's gross domestic product implicit price deflator, which is regarded as more conservative than the consumer price index.

Table 2 paints a darker picture of the purse and earnings data than Table 1; all key measures-except for median-showed large declines when adjusted for inflation. Total real purses declined 5.1% from 2004, and the total of $1,024,861,647 was 8.8% below the record $1,123,143,259 distributed in ‘02. In ten years, deflated total purses have increased just 13.7% despite the large purse increases associated with full-card simulcasting.

Deflated average earnings per runner declined 3.2% to $14,140, the lowest figure since 1997. Deflated average earnings per runner have declined every year since peaking in 2000 at $15,798. In ten years, the adjusted earnings per runner increased just 1% per year on average.

Deflated average earnings per runner have shown little improvement in the past 35 years. In 1970, deflated average earnings were $13,862, a figure not surpassed until 1998. Since 1970, real average earnings per runner have increased just 2%.

Real median earnings per runner have fared a bit better, increasing 1.6% in 2005 and 30.4% over the last ten years. But, in looking over a longer time horizon, that statistic is doing worse than real average earnings per runner. In 1970, real median earnings per runner came to $5,672, 3.5% higher than in 2005.

Real total purses in North America have been on a general increase during the duration of this study. In 1973, real total purses stood at $733,657,961 (when nominal purses totaled $233,662,724). In 32 years, real total purses have increased 39.7%, or 1.2% a year, in an era when other forms of gaming have proliferated, essentially taking market share from racing.

Microeconomic picture

Tables 1 and 2 examine the macroeconomic picture of racing. Starting with Table 3, we will examine the microeconomics of racing-how individual classes of runners fared on the track-by looking at the types of races, races by age, sex, and distance, how many starts they made, how many races they won, and other measures-and showing how all those factors have an effect on earnings.

Table 3 breaks down earnings for all runners by dollar range. While the average earnings per runner in 2005 was $15,851, very few runners earned the average. Table 3 shows that 4,954 horses, or 6.8% of all runners, earned between $15,000 and $19,999 last year.

That table also indicates that 5,665 horses, 7.8% of the total, earned nothing, which is an improvement over 2004, when 8.5% of all runners failed to earn any part of a purse. And 17.9% of all runners, or 12,941 starters, earned between $1 and $999. Taken together, 25.7% of all runners did not break into four figures and earned just 0.5% of all purse money.

At the other end of the spectrum, 1.8% of all runners, 1,284 horses, earned $100,000 or more. Those runners took home 23.2% of all purse money, an average of $207,992 each.

Just 162 runners, 0.2% of the total, earned $300,000 or more, capturing 8.5% of all purses and boasting an average of $602,009.

Figure 1 presents the data in Table 3 as a bar chart. The figure graphically illustrates that few horses earn substantial amounts in any one year of their racing careers. From left to right, the height of the bars drops off dramatically as the earnings categories increase. The short bars on the right side of the figure show that just 3.1% of all runners earned $75,000 or more in 2005.

The two tallest bars are the categories of less than $1,000 and earnings of $1,000 to $4,999, with 38.3% of all runners falling into those low-earnings groups. A little more than six out of every ten runners, 60.9%, earned less than $10,000 each in 2005.

Haves and have nots

Table 4 reorganizes the data in Table 3 to present cumulative percentages and running totals for earnings by range in a less-than/more-than format. The data are organized around the earnings levels in the middle column. The left side of the table shows cumulative statistics of runners earning the stated amount or less than that amount, and the right side of the table shows cumulative statistics of runners earning more than the stated amount.

For instance, to find out how many horses earned more than $25,000 in 2005, refer to the data on the right side of the table. The column immediately to the right of $25,000 indicates that 12,559 runners, 17.3% of the total, earned more than that amount. Those runners collectively won $771,316,736, or 67.1% of all purses, and they earned an average of $61,415.

On the left side of the table, the percentages are the obverse, and the averages are recalculated. In 2005, 59,928 runners-82.7% of the total-earned $25,000 or less, with average earnings per runner of $6,302.

In 2005, 1,283 runners, 1.8% of all starters, earned more than $100,000, and they collectively earned 23.2% of all purses. The 350 horses that earned more than $200,000, 0.5% of all runners, won 12.4% of all purse money.

The left side of the bottom row of Table 4 indicates that 5,665 horses earned less than $1 in 2005. The right side indicates that 66,822 horses earned more than $1. The average earnings of the latter group was $17,195.

Atop Table 4, the highest earnings category is $3,696,960, which belongs solely to Horse of the Year Saint Liam, who included the Breeders' Cup Classic (G1) among his four wins in 2005.

Stakes winners best

Stakes races, the principal feature for most tracks, are usually the ultimate goal of owners. When owners breed to race or go to a sale to buy a horse, they most likely are hoping they will get a stakes horse. The data from "All About Purses" show why it is important to get a stakes-quality runner.

As shown in Table 5, stakes winners earned an average of $145,051 in 2005. (In this study, a stakes race is an added-money event of any value.) The 1,835 individual stakes winners (from 2,628 stakes races, as shown in Table 14) represented 2.5% of all runners. Stakes winners earned an average 9.15 times the average earner for the year. In 2004, when the average stakes winner earned $153,372, that ratio was 9.6. Average earnings for stakes winners declined 5.4% from 2004.

Stakes winners won a total of $266,168,341, or 23.2% of all purses. It should be noted that not all earnings of stakes winners came in stakes: Stakes distributed 24.3% of all purses (Table 14) in 2005.

All stakes winners are not equal, and Table 5 shows the disparity in earnings among the 1,835 winners of added-money events. In 2005, 97 stakes winners, 5.3% of the total, earned less than $15,000 each, or less than the $15,851 overall average earnings per runner for the year. At the other end of the spectrum, 881 stakes winners, 48% of the total, earned $100,000 or more each. Effectively, those runners collectively earned 80.5% of all money attributed to added-money winners, with average earnings of $243,258.

A look at the data in Tables 3 and 5 indicates that a significant number of non-stakes winners-403-earned $100,000 or more in 2005, because 1,284 horses earned $100,000 or more (Table 3) and 881 stakes winners earned at least $100,000 (Table 5).

Table 6 breaks down earnings of stakes winners by age and sex. The leading earners in all age categories are males, with four-year-old males having the highest average, $187,697. Overall, stakes-winning males earned an average of $155,806 and stakes-winning females $131,884. Males accounted for 59.1% of total earnings for stakes winners.

The best earnings opportunities are for three-year-olds. Three-year-old stakes winners represented 32% of all added-money winners and collectively earned 34.8% of all money won by stakes winners in 2005.

Two-year-old stakes winners were at the low end of the earnings range, with average earnings of $104,956. Their lower earnings can be attributed in part to starting fewer times on average than any other age group (Table 11), with all juveniles in 2005 starting on average of 3.2 times, less than half as many times as the overall average of 6.5 starts for all ages.

While two-year-old stakes winners did not have a high average earnings figure, juveniles had plenty of opportunities in stakes. There were 317 two-year-old stakes winners in 2005, compared with 394 four-year-old stakes winners and 278 five-year-old stakes winners. Still, juvenile stakes winners collected just 12.5% of all money won by stakes winners.

Starting is key

An owner cannot win money unless his or her horse reaches the starting gate. The importance of starting to winning purse money is outlined in Table 7.

Table 7 reports earnings as a function of starts, and it shows that average earnings per runner rise for every start made from one through nine. Horses that started just once earned an average of $2,035. Horses that started twice earned roughly twice as much. Horses that made five starts earned an average of $15,101; horses that made nine starts earned an average of $24,953.

As can be seen by the percent of runners starting a specified number of times, a large percentage of horses failed to get into the starting gate anywhere near enough times to earn a meaningful amount of money for their owners. Almost one-third of all starters, 31.9%, made three or fewer starts. Those 23,174 runners collectively earned just 8.9% of all purse money.

Horses that started the most times earned the most. The top line of Table 7 indicates that the 18.9% of runners that made more than ten starts in 2005 earned 30.2% of all purse money, an average of $25,347, or 59.9% more than the average earnings per runner for the year.

Average earnings per start in 2005 came to $2,454. For horses starting more than ten times, by and large claiming horses, average earnings per start dropped to $1,877.

To show how averages are just average, Table 7 indicates that just 7% of all runners made seven starts and 7.6% six starts, while Table 15 indicates the average number of starts per runner in 2005 was 6.5.

Winning is everything

In looking at all the data related to purses and earnings, the most important factor to earning money on the racetrack is winning. Table 8, which reports earnings as a function of number of wins, graphically illustrates that winners take home the vast majority of the purse spoils.

Horses that were able to win just one race earned an average of $18,483, 16.6% more than the overall average earnings per runner for the year. Horses able to win two races earned an average of $34,025, $15,542 more than horses able to win just one race. Each additional win was increasingly more rewarding, with three wins being worth $18,765 more than two wins, and four wins being worth $21,311 more than three wins.

Earnings rise dramatically because once a horse is able to win a race, it has eliminated more than half of its competition. The 34,157 winners effectively were splitting up $1,015,819,648 in purses because the 38,330 winless horses collectively won just $133,183,490. Horses that failed to win, 52.9% of the total, earned an average of $3,475.

As horses move up the win ladder, the number of horses able to win one more race declines dramatically. Table 8 shows exactly how hard it is for a horse to win multiple times. The number of runners able to win at each successive level drops off substantially. Only 652 horses were able to win five or more races.

Horses that won seven times earned an average of $107,592; those able to win eight races, just 18 horses, earned an average of $161,082, the most of any win category. Only five horses were able to win nine races in 2005. The 34,157 winners collectively won 57,428 races (there were 123 more wins than races due to dead heats).

Table 9 presents the data from Table 8 in the less-than/more-than format. The data at the bottom of the table indicate that 52.9% of all runners could not win one race in 2005, 79.9% of all runners could not win more than one race, and 92.1% of all runners could not win more than two races.

The figures in the table are cumulative, meaning they include all the horses falling into the not-more-than category. For instance, the $15,223 average earnings per runner for those horses that could not win more than four races include data for all horses that won four, three, two, one, and zero races.

The right side of the table presents cumulative more-than information. The 47.1% of the runners that won more than zero races in 2005 includes winners in all races won categories. All horses that could win at least one race had average earnings of $29,740. The cumulative average of those horses able to win more than one race was $44,843.

As was also shown in Table 8, horses able to win multiple times dramatically increase their earnings. The 7.9% of runners able to win more than two races earned an average of $61,713, and the 2.8% of runners able to win more than three races earned an average of $77,571.

Winners dominate

Racing bestows the majority of each purse on the winner to ensure the integrity of racing, so that owners, trainers, and jockeys are trying their best to win and are compensated highly only when their horse wins.

Tables 8 and 9 show why winning is so important. Table 10 drives home the point that winning is everything when it comes to earning purse money.

In 2005, winners collectively earned 88.4% of all purse money. That means nearly nine out of every ten dollars distributed in 2005 went only to winners.

As shown in the first line of Table 10, data relating to best finish position, the 47.1% of runners who won a race collectively earned 100% of first-place money, 74.7% of all second-place money, 70.5% of all third-place money, 68.3% of all fourth-place money, 66.5% of all fifth-place money, and 59.9% of all sixth-place money or lower, for an overall average per runner of $29,740.

The 14.4% of runners that could finish no better than second in any race earned 8.3% of all purse money, an average of $9,081. Horses that finished first and second collectively earned 96.7% of all purse money.

Data in Table 10 suggest that owners derive little benefit from minor placings. Unless a horse is able to win a race, the horse's earnings will be insufficient to defray the costs of training, jockeys' fees, veterinary fees, and other expenses.

Table 10 indicates that the national average paid to first place in 2005 was 59.6% of the purse, with 19.9% to second, and 10.8% to third.

The data in the table are presented as a pie chart in Figure 2. The distribution of money to horses based on best finish position has not changed much since this study started in 1973, even though 92.2% of all runners earned part of a purse in 2005.

Winners start more often

The importance of starting as a correlation to winning money was examined in Table 7. Table 11 provides more specific data on the importance of winning to earning money as it relates to age.

The data reveal that winners start far more often and earn much more money than horses that earn some money but fail to win. Winners average more than four times as many starts as those horses that fail to earn any part of a purse. In 2005, winners started 8.7 times on average, non-winning earners averaged 4.8 starts, and nonearners two starts, for an overall average of 6.5 starts per runner. Twenty years ago, winners made an average of 11.7 starts, 25.6% more than in 2005.

The composite data on the right side of the table present the overall averages for all ages of runners, indicating that two-year-olds averaged just 3.2 starts, less than half the overall average for all ages. Four- and five-year-olds started the most on average, 7.4 times each.

Winners in 2005 earned $3,402 per start on average, four times higher than the $842 average earnings per start for non-winning earners. Two-year-old winners recorded the highest overall average earnings per start, $6,828, almost exactly twice the overall average earnings per start for all winners.

Table 11 details the distribution of winners by age. Of the 34,157 winners last year, 10.3% were two-year-olds, 29.7% were three-year-olds, 27.9% were four-year-olds, 15.7% were five-year-olds, and 16.4% were six or older.

Overall, two-year-olds accounted for 15.4% of all runners, with three-year-olds the largest group, 27.8%, and four-year-olds the second largest, 24.4%. The short career of racehorses is illustrated by the fact that five-year-olds accounted for just 14.9% of all runners and six-year-olds and up just 17.5%.

Age, sex differences

Males and females have different earnings potential on the track, and those differences are outlined in Table 12.

Three-year-olds, which compete in the highest-profile division in racing, have the most lucrative opportunities. While just 10% of all races in 2005 were restricted to three-year-olds, those 5,758 races distributed 16.1% of all purses, an average purse of $32,081. The handful of races restricted to sophomore males offered an average of $46,595, and those open to either sex paid an average of $34,181. Races restricted to three-year-old fillies offered an average purse of $29,495.

Two-year-old racing offered the second-best average purse structure, with the 4,362 races-7.6% of the total-offering 11% of all purses, an average of $29,028.

The most common races were carded for three-year-olds and older; the 38,569 races in that category amounted to 67.3% of all races and 58.7% of all purses, with an average purse of $17,480.

Disparities in earnings opportunities for males and females are also pronounced. Races open to either sex-which, for all practical purposes, are races for males-were far more abundant than races exclusively for females, with 58.8% of all races being open and 40.9% restricted to females. Just 0.3% of all races were restricted to males.

The 23,447 races restricted to females had slightly higher purses on average than races open to all sexes, by a margin of $20,512 to $19,582.

Table 13 examines in further detail the differences in earnings power for ages and sexes, looking at age and sex by number of runners and their share of earnings. As Table 13 illustrates, females earned an average of $15,234 in 2005 and males $16,336. While females accounted for 43.9% of all runners, they collectively earned 42.2% of all purses. In every age bracket, males earned more than females. Among three-year-olds, the highest earnings bracket by age, males earned an average of $19,508, while females averaged $17,737.

Three-year-olds were the largest group of runners, with 27.8% of the total, followed by four-year-olds, 24.4%. Three-year-olds earned the largest portion of purses, taking about one-third of all purse money, 32.6%, with four-year-olds next at 28%. Three-year-olds perennially are able to win the most money because purses are higher on average for three-year-olds than any other age group (Table 12), and three-year-olds have a lot of opportunities outside their age division in the fall.

Two-year-olds earned an average of $11,309, less than any other age group, largely because two-year-olds start fewer times on average than any other age, as has been noted.

Claiming game

Claiming races are the most common event carded, and Table 14 shows how prevalent claiming races are in North America. In 2005, claiming races constituted almost two out of every three races. Of the 57,305 races, 37,793, or 66%, were for claimers, including maiden claiming, which alone accounted for 17.3% of all races. Straight claiming races accounted for almost half-48.6%-of all races.

Claiming races, however, offer below-average purses. The $11,276 average claiming purse was 43.8% lower than the overall average of $20,051.

When this series began in the 1970s, claiming races made up approximately 73% of all races. After full-card simulcasting began and the number of runners and races decreased, claiming races were less plentiful as allowance races and optional claiming races became more common. The percentage of claiming races dropped to an all-time low of 64.5% in 2000, which was near the 25-year low for the number of runners in North America. As the number of runners increased in subsequent years, the percentage of claiming races also increased. In 2004, claiming races were 66.5% of all races.

The $37,046 average non-claiming purse in 2005 was almost 3.3 times larger than the $11,276 average claiming purse.

Allowance races were the second-most common race type in 2005, with about one in every eight or nine races falling into that category. Those 11.6% of all races offered an average purse of $27,458, distributing 15.8% of all money.

The third-most common race was straight maiden races, representing 11.1% of all races and carrying an average purse of $25,203. When maiden claiming races are added to straight maiden races, races for non-winners accounted for 28.4% of all races conducted in North America last year.

As shown in Tables 5 and 6, which detailed the earnings power of stakes winners, stakes races offer the best earnings opportunity. Table 14 provides data on exactly how lucrative stakes races are in North America.

In 2005, stakes races featured an average purse of $106,165, distributing 24.3% of all purses while accounting for just 4.6% of all races. In 2004, stakes represented 4.4% of the total. The average stakes purse in 2005 was nearly 5.3 times more than the overall average purse for the year. The average stakes purse declined 2.8% from 2004, from $109,235.

Despite the rich opportunities in stakes races, average field size in added-money events in 2005 was 7.8, 4.9% below the overall average of 8.2. The largest fields on average were in maiden claiming races and straight maiden races, each averaging 8.7 starters.

Figure 3 presents the data on the distribution of races as a pie chart. Straight claiming races made up almost half of all races. The 4.3% optional claiming race segment has been the fastest-growing category. In 1984, optional claiming races accounted for less than 0.1% of the total.

Starts still declining

The average number of starts in North America has been on a long, steady decline for decades. In 2005, the average number of starts per runner declined to 6.5, the fewest ever, after holding steady at 6.6 for two years.

Table 15 reports the average number of starts per horse and average field size since 1987. In 1972, the first year of this study, horses started an average of 10.1 times. As discussed earlier, earnings are related to the number of starts, and, with the average number of starts dropping, opportunities to win money decline.

The decline in starts comes at the same time that average field size is declining. With fewer starters per race, it should be easier to get a horse into the starting gate, but average field size also has been in a slow decline for several decades. In 2005, average field size was 8.2, well below the 9.1 average number of starters per race in 1988.

Go long, young man

Some of the richest earnings opportunities are in stakes, but it also pays to be able to run a distance of ground. In racing, the general rule of thumb is that the farther a horse can run, the more money it will be running for.

Table 16 examines purses as a function of distance (excluding two-year-old races, which are primarily sprints for much of the year). As shown in the table, average purse rises as races are run at longer distances. The mile mark seems to be the dividing line. Average purse for races at distances of less than a mile-except for seven furlongs-are all less than the overall $19,311 average purse (excluding two-year-old racing) in 2005.

Races at seven furlongs, 5.4% of all races run, offered higher-than-average purses of $23,068.

Races at a mile or longer generally featured above-average purses. Races at a flat mile offered an average purse of $19,445, almost exactly the overall average. At all other distance categories of more than a mile-except for the distances of one mile and 40 yards and one mile and 70 yards-the average purse was greater than the overall average.

The 34,062 races at less than a mile offered an average purse of $15,498; the average purse for the 10,816 races at more than a mile was $31,218, a fraction more than twice as much.

While 64.4% of all races were contested at less than a mile, those races distributed just 51.7% of all purses.

Most common race was six furlongs, with 29.2% of all races being run at that distance. The 15,455 six-furlong races distributed 24.3% of all purses, with a below-average pot of $16,045.

The highest average purse was offered at the American classic distance of 1 1/4 miles. Only 140 races, 0.3% of the total, were contested at that distance, but they featured an average purse of $210,231 and distributed 2.9% of all money. The number of races at that distance was down 20.9%, from 2004, when 177 races were run at 1 1/4 miles.

While 1 1/2-mile races are far and few between, with just 87 offered at the distance, they offered a rich average purse of $134,745.

Figure 4 illustrates the relationship between distances and purses. In aggregate, in all races at distances of six furlongs or less, the percentage of total purses is less than the percentage of all races. At all distances greater than six furlongs, the percentage of purses in each race category is greater than the percentage of races. That has been the case for years.

The figure shows that running short is not very lucrative on average. Races less than six furlongs accounted for 20.9% of all races but distributed just 12.9% of all purses. At the other end of the distance spectrum, races at 1 3/16 miles or longer distributed four or more times their share of purses.

Purses by purse

Table 17 presents the distribution of purses in North America in 2005 by value. In 2005, just 79 races, 0.1% of the total, offered a purse of $500,000 or more. Another 819 races, 1.4% of the total, offered purses of $100,000 to $499,999. Those 898 races distributed $197,609,362, 17.2% of all money.

At the other end of the purse spectrum, 2,016 races, 3.5% of the total, offered a purse of less than $4,000, and just 0.5% of all purses. In 2005, 39.2% of all races featured a purse of less than $10,000.

Figure 5 illustrates purse distribution by value, and shows why it is hard to earn a lot of money with any one runner. The largest purse category is $10,000 to $14,999 and features 19.5% of all races. When that purse category is added to all those purse categories of lower values, 58.7% of all purses in 2005 had a value of less than $15,000. Just 5.1% of all purses had a value of $50,000 or more.

In summary

As has been the case for years, making a lot of money owning racehorses is a tough proposition. Relatively few runners in any given year earn a substantial amount of money, and that was again the case in 2005. For those owners lucky enough to get horses in the top 2% or so of earners, the rewards are good. Owners that campaign average earners, however, very likely should be in racing for the fun of ownership and getting into the winner's circle while they continue their pursuit of the horse with substantial earnings potential.

The data from 2005 indicate that purses today are not keeping up with inflation despite generous subsidies from alternative forms of gaming, such as slots and VLTs, which now amount to about $200-million annually. Total purses, when adjusted for inflation, declined 5.1% in 2005. And real average earnings per runner declined for the fifth straight year. That is a disturbing trend for owners and issues a word of caution about the future state of purses.

 Mark Simon is president and editor of Thoroughbred Times.

All About Purses 2005
All About Purses 2004 
All About Purses 2003 
All About Purses 2002 
All About Purses 2001
All About Purses 2000