Does coolmore make a profit?

Question

Does coolmore make a profit?

Answer 1

ask yourself this question- is the pope a catholic-then you have your answer.

Answer 2

Go on to their website and look how much it costs to send a mare to one of their stallions. Then think how many mares a stallion can cover in a year . Then look how many stallions they have around the world and I think you will get the answer.

Answer 3

Well the operation as a whole is reckoned to $284 million (that's about £142 million in REAL money at current excellent rate of exchange)

So the answer is Yes. It does make a profit !!!

Answer 4

And then some!  Yes they may actually lose money on some horses - ie those that flop on the racetrack and are sold off; and they sure as h**l will have lost money on Cigar and AP Valentine, but overall they will be making a huge profit.

It is rare to make a big profit on a horse when it actually races (it costs approx £16,000 to keep a horse in training in GB, then add on top of that vet bills, travelling costs and the price you paid for it at the sales), but the real money lies in the proceeds at stud.

Just as a general example let's take Fusaichi Pegasus, at stud at Ashford in Kentucky (Coolmore's American stallion farm).  His stud fee for the 2007 breeding season was $75,000.  According to the Coolmore site he has 526 foals from 5 crops (2002-2007), so for arguements sake lets say he can get 100 foals in one year.

Now you don't pay your fee if your mare does not get in foal, or if she loses the pregnancy (in some cases you also do not pay if the foal dies within 48 hours of birth), so we don't need to worry about those.

Of the 100 foals in any one year, we can assume that about 25 mares will have belonged to the owner of the stallion - most stallion owners will patriate their own stallions with a decent book of mares as it shows they have faith in his ability as a sire.  So that leaves us with 75 foals that will have cost the owner $75,000 each.  The income for Fu Peg in one season is therefore $5,625,000!  Yup that's just ONE year.

Obviously the amount of profit made depends on what stud fee the stallion stands at and how many foals he can father in a season.  Also these days many studs do deals with mare owners and give them a reduction on the stud fee depending on the quality of the mare they are sending - ie a Group 1 winning mare may get 50% of the stud fee as it is good for the stallion to be seen to be covering high quality mares.