Determining the value of a horse

[Thoroughbred Fan]

Most today are based on 60 shares. Simple math from there. Let's suppose $50k for Curlin.

The prospective buyers would be offered shares with the idea that for the first four years they would get two seasons.

They need to pay $100k per year for four years. Most would pay the fees the first year and get the payback for there shares covering the next years fees for the next three years, assuming he stays booked full.

So, that would amount to $400k per share X 60 shares = $ 24 M.

So, I think it is pretty easy to see how $60-70 million is probably too high.

However, you can see how it might be a good investment for those close enough to the farm to get the chance to buy a share. You'd nearly own the share outright for just $100k by the time his first runners get to the track. As long as he is promoted enough and sells reasonably, after a few years its all profit.

That is how the stud business works. However, investing in a few different stallions will spread your risk. Putting all your eggs in one basket can be risky.