BY STEVE KOCH

Does an emphasis on foal numbers put the cart before the horse?

The real industry horsepower may not be foal crops—it’s racehorse ownership. Limited ownership constrains demand, and therefore long-run supply and prices, of young horses. Everything else follows in the cart: more owners create more demand, which drives breeding, racing opportunities, and wagering.

Have we sufficiently considered breed-to-race initiatives that improve financial incentives for breeders to race their own horses?

Breeders represent low-hanging fruit for ownership conversion. They already understand the industry and may have the necessary capital.

Converting knowledgeable breeders into willing and eager racehorse owners creates a chain reaction. Market retention reduces available supply while demand bids prices higher and strengthens the mid-market (quality over quantity). Higher prices and improved liquidity drive longrun supply. And supply gains drive employment, race entries, and wagering.

The FTBOA has analyzed breed-to-race initiatives but remains hamstrung by insufficient ownership reporting. The challenge is proving who significantly owns and manages listed horses, since current rules don’t track ownership percentages clearly. Can racing regulators improve the national ownership reporting systems necessary to make breed-to-race incentives work?

Return to the September 18 issue of Wire to Wire