The fifth instalment of the 2024 OwnerView webinar series, focusing on the economics of the Thoroughbred industry, was held on July 9. The webinar addressed key topics such as record purses, incentives to race and breed horses, and strong top-end sales despite a declining foal crop. It was hosted by The Jockey Club and the Thoroughbred Owners and Breeders Association and presented by Bessemer Trust, Stoll Keenon Ogden, and The Green Group. The panel was sponsored by Juddmonte Farms and Woodbine, with a Q&A session sponsored by West Point Thoroughbreds.
The webinar began with a review of economic data highlighting the decline in the foal crop over the years.
Tom Rooney, president and CEO of the National Thoroughbred Racing Association, pointed out that while the decline might seem negative, it has led to higher purses, which is beneficial for current owners and breeders. Rooney also noted that the proliferation of other forms of sports betting, such as online gambling, has impacted the horse racing industry.
Everett Dobson, owner of Cheyenne Stables and Candy Meadows Farm, emphasised the significance of state breeding programs to the local economy. Dobson highlighted the favourable tax structure that now exists, making it more compelling to breed horses for racing.
Dobson and Dr. Marshall Gramm, co-founder of Ten Strike Racing, discussed the benefits of breeding horses to race rather than just for sale. Gramm emphasised that state-bred programs offer continuous incentives, as owners get paid when their horses perform well. This encourages the breeding of sound horses.
The webinar underscored the current economic environment's complexity within the Thoroughbred industry, noting both challenges and opportunities. The decline in the foal crop presents certain concerns but also opens up beneficial scenarios for breeders and owners due to increased purses and favourable tax incentives. State breeding programs continue to play a vital role in sustaining and growing the industry.