There are few more profitable sectors across the world than horse racing. In some countries, such as the United Kingdom, the industry has a direct impact on others, with the success of racing often felt in the world of betting.
Meanwhile, in the UK, the sport directly impacts the local economy, as jobs can be created across the country.
Meanwhile, it is also a massive deal in the United States, with the sector being worth over 3.68 billion in 2022, according to Statista.
Therefore, it is no surprise that there are certain areas of the sector that businesses look to get involved in with the hope of making a return. But what are some of the most profitable avenues for business within horse racing?
While selling stocks on the stock exchange is popular among other businesses, that isn’t necessarily the case when it comes to horse racing, as a runner can’t be put up for sale freely.
However, the closest resemblance is shares. This form of ownership is preferred by those who want to be involved in the sport but don’t wish to invest millions for the luxury.
Shares can be found freely online. The price is based on the talent of the horse being bought, and buyers can purchase as many shares as they wish. Shared ownership is a growing sector within the sport, as it enables part-owners to gain all the same perks as a typical owner, including race day passes and visits to the yard.
Importantly, for financial reasons, having shares in a horse will also result in profit being made if a runner performs well and picks up prize money. However, the returns that you stand to pick up will be reflected by the number of shares that you have in the runner.
Getting started in the world of horse racing can often feel like a daunting prospect for those who wish to become a professional jockey. Starting at a young age is essential, meaning that there are a number of excellent businesses that make a lot of money by teaching younger students how to ride a horse.
Classes can be completed in a number of different ways, whether that be an individual seminar or within a group. The business can also be started in a couple of ways, such as becoming self-employed and working from your own stable or joining an existing company to build your portfolio of work.
Qualifications are a huge part of this profession, as full-time instructors must hold the required certificates to prove that they are able to deal with horses should something go amiss.
That is also reflected in the salary that could be expected. Assistant instructors stand to pick up a maximum of $20,000 per year, while a fully qualified teacher could earn as much as $40,000 per year.
One of the most important businesses in the world of horse racing surrounds the breeds of potential superstars. It is one of the backbones of the sport, and it supports around 80,000 jobs in the United Kingdom and is worth a staggering £4.1 billion.
Becoming a breeder in the sport is a testing period, but the rewards at the end could be hugely rewarding. There are three stages in the pathway to becoming a breeder, which includes an opening stage that revolves around a residential course. Work placement is featured in the second stage of the process, and during this period, you will be required to gain a Level 2 Diploma.
Following this, the final step of the certification is a Level 3 in Thoroughbred Stud Practice. This revolves around working in a work environment and developing the skills that you have learned during the course.
Profit can be gained following the sale of horses, while some breeders also attach a percentage of earnings onto their work, meaning that they stand to earn more if they breed a potential champion in one of the TwinSpires Kentucky Derby prep races.
Owning a racehorse is the most popular business within the sport. As an owner, you will get as much back as you put in, meaning that if you make a big-money purchase for over $500,000, you will have the potential of having a superstar that could return your investment in terms of wins at the highest level of the sport.
While many believe that the vast majority of the returns will come during the racing career of their stars, it could be worth noting that big money can be made in terms of sales and stud fees.
This could be a lucrative self-making business if you happen to invest in a potential superstar, with one of the most lucrative stud fees across the world coming in the form of Into Mischief, which is worth $250,000.