Derby purse raised to $3,000,000

[philcski]

Originally Posted by Kasept

The Derby purse has been ridiculously low considering that the first $1,000,000 is generated from the 20 entrants x the $50,000 it costs to pass the entry box. Last year I heard from KY-based stakeholders who feel that based on the revenue generated, the purse should be $5,000,000.

They did enhance purses throughout the stakes program with this round of increases..

From Marty McGee's piece: Meanwhile, Churchill also announced substantial purse increases for the two other major races on Derby weekend – the Grade 1 Kentucky Oaks now will be worth $1.25 million, and the Grade 1 Old Forester Turf Classic has been doubled to $1 million. The Oaks had been $1 million since 2011 and was worth $500,000 from 1996 to 2010.

Also, the Grade 1 Humana Distaff on Derby Day has been increased from $300,000 to $500,000. Four more races underwent $100,000 increases, including three on Derby Day and the Grade 2 Stephen Foster on June 15, while seven more got $50,000 raises.

I think you can make an argument for it being even double the $5MM number. They did $150MM handle on the Derby alone last year- not even factoring in the nomination fees, entry fees, tickets, etc. Not sure what CD's take is on simulcasting but I know they negotiate special rates for Derby weekend, so even at 10% that's a $15MM take. Steve, any idea?

[freddymo]

Originally Posted by philcski

I think you can make an argument for it being even double the $5MM number. They did $150MM handle on the Derby alone last year- not even factoring in the nomination fees, entry fees, tickets, etc. Not sure what CD's take is on simulcasting but I know they negotiate special rates for Derby weekend, so even at 10% that's a $15MM take. Steve, any idea?

Why would a company bust its nut on a race that would draw 20 runners and have the same handle and quality if it was raced for 1,000,000? Can you find a better use of the money?

[Konk]

I wouldn't be worrying about raining the purse until they start getting short fields - 17, 18 horses.

As a bettor, it has zero impact for me.
So I don't care.

[King Glorious]

Originally Posted by freddymo

Why would a company bust its nut on a race that would draw 20 runners and have the same handle and quality if it was raced for 1,000,000? Can you find a better use of the money?

Exactly. The race could be for $500k and would attract the same field.

[philcski]

Originally Posted by freddymo

Why would a company bust its nut on a race that would draw 20 runners and have the same handle and quality if it was raced for 1,000,000? Can you find a better use of the money?

Like pump up the stock price?

I'd rather see it go into the purse.

[freddymo]

Originally Posted by philcski

Like pump up the stock price?

I'd rather see it go into the purse.

The KD purse or the purse structure for bread and butter racing? It's not an easy question and there is no magic answer.