There are few more lucrative sectors in sport than horse racing. The sport is responsible for major economic booms across the world, with races on the flat having a profound impact on the future of the sport. 

Winners of major Classics such as the Kentucky Derby and Epsom Derby can have a direct impact on pedigrees of future champions, which ensures that there is always huge interest in races on the Triple Crown series. 

Therefore, many people will be looking to learn more about the upcoming Preakness Stakes, with a handy betting strategy guide for the Middle Jewel found here: https://www.twinspires.com/preakness-stakes/betting/. 

So, what factors contribute towards value in the horse racing industry? 

Pedigree

There is no exact science when it comes to producing a potential champion, with breeders typically relying on pedigrees to help create a horse that is capable of winning major prize money. 

This typically sees unraced horses sell for vast amount of money before even making a racecourse start. This was evident earlier this year when a colt by Breeders’ Cup Classic winner Flightline sold at auction for a staggering $10.5 million. 

Generally, the value of a horse will be determined by the reputation of their sire and dam, with offspring’s of champions being highly coveted. As well as this, horses with a ‘Black Type’ pedigree will be worth more, as it indicates a runner that is closely related to a horse that has performed well in Listed or Graded stakes races. 

Finally, the final factor that could impact the valuation of an unraced yearling is the performances of siblings on track. Unraced horses that have brothers or sisters that have won at the highest level will be worth more, as there will be a sense that related horses will be capable of reaching the same heights. 

No Exact Science

While the pedigrees can provide a better insight into a horse’s potential future on track, there is no guarantee that it will result in success. There have been countless occasions throughout history where well-bred runners have been sold for big money and then disappointed. 

One of the most famous was a $16 million purchase named The Green Monkey. The yearling was the most expensive to ever be brought at auction, but he never won a race and was retired in 2008 after making three starts. 

In Australia, a horse called Jimmy was brought for $5 million, with high expectations as a half-brother to unbeaten champion Black Caviar. However, the thoroughbred never made it to track and died following a spider bite. 

Rockstardom looked destined for success after sharing lineage with Galileo and Makybe Diva. However, despite costing $2 million, he won just two of his 12 starts. 

Performances on Track

Ultimately, the valuation of a horse will be impacted based on their performances on track. Horses with proven winning records at the very highest level will be regarded as high-class stallion prospects, and that is reflected by the highest-priced stallions in the world. 

The most expensive sire remains Dubawi, who stands for a fee of $500,000. On track, the horse enjoyed a dominant record, winning the National Stakes, Irish 2,000 Guineas, and the Prix Jacques Le Marois. His valuation has only increased year-on-year since retirement, producing winners of the Breeders’ Cup Mile, Epsom Oaks, and St. Leger. 

As well as gaining flat success, Dubawi has also produced high-quality jumps horses, notably Dodging Bullets, who won the G1 Tingle Creek Chase and G1 Queen Mother Champion Chase. 

Physical Health

Another key factor that is considered when valuing a horse is physical condition, both during race careers and post-racing life. 

Clean veterinary checks and freedom from major injuries are critical when considering the value of a horse. The structure of a horse is also considered when assessing a valuation, with horses that have strength and athletic balance typically being worth more. 

Ages of horses will also have a big impact on value, with yearlings that are typically unraced being valued on their potential, while horses aged between two and five are valued based on what they have achieved on track.  

Breeding Potential

Colts with wins in Triple Crown races have a higher valuation for potential breeding, with winners of races such as the Kentucky Derby, Epsom Derby, and St Leger all proving to be valuable assets. 

However, mares can also present residual value, as they can become broodmares following their retirement. One of the most valuable broodmares in history is Urban Sea, as she was the revered dam of Galileo and Sea The Stars. 

Due to this, she not only produced two winners of the Epsom Derby, but also has direct links to hundreds of Group One winners that have been produced by Galileo. The least valuable horses are geldings, as they will have no breeding value, meaning that their value is largely dependent on their race results.