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#1
11-13-2007, 03:02 PM
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too many variables to have one answer....ego, greed, ability to pay insurance premuims, laws of supply and demand, they start to lose....just a couple of the factors that go into deciding when to retire.
__________________
 Seek respect, not attention.
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#2
11-13-2007, 04:22 PM
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You could figure out the value of him based on what Sanan sold his interest for. Let's say he owner 25% of him and got $15M for that 25% than the horse would be valued at $60M. Highly unlikey that happened though. I heard it was $10M for 20%, which would make him worth $50M. That is just rumor though. I heard the rumors when he was initially sold in the $2M-$3.5M range. One guy who knows the deal pretty well told me it was $3.5M.
The value of a horse is really whatever an insurance company is willing to insure it for or whatever a purchaser will pay. I am sure if they were willing to pay an insurance company would insure him for $60M. Nobody is going to pay that much for him though if he was sold in full.
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#3
11-13-2007, 05:26 PM
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The word "value" has very little meaning in the breeding industry anymore.
__________________
Avatar ~ Nicky Whelan  and now we murderers because we kill time
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#4
11-13-2007, 06:50 PM
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#5
11-13-2007, 11:22 PM
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Insurance on an in training horse is very high. The biz is small and once figures like $10m, $30m, $50m etc get bandied about the insurance company rep calls to tell you that your rates just went up, even if you have not closed any deals. If you get offered $20m for your colt and are taking time to decide, race him in the Cigar Mile, contemplate a 4yo campaign etc, the insurance guy and you both know that that offer constitutes an (informal) assessment of his "value."
Depending on the rates, at some point it becomes to expensive to race. if he cannot be expected to make enough to cover costs (training, vet, shipping, insurance etc) it's better (business) to sell. OTOH, if racing is for you a labor of love, something you want to do, maybe you bite the bullet and go on. If you are wealthy, your family taken care of and comfortable that the $20m wont change your life and you derive great pleasure from seating your beat race, you go on. Mrs Valando should be an idol to all who rue the breeding tail wagging the racing dog. Last winter when her horse was the "buzz horse" she declined $17m for Nobiz. She LOVES seeing him race. She named him for her departed husband and by continuing to race him she honors his memory. For her, it's not about how much does this cost vs how much can I make. She loves the game.
__________________
RIP Monroe.
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#6
11-13-2007, 11:25 PM
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#8
11-13-2007, 11:25 PM
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The real issue, with regard to the insurance aspect, is not "value" per se (even in receiving offers) -- it's "capacity" in the marketplace. At a certain point, underwriters and insurance companies (incuding reinsurance, surplus lines, excess markets, etc.) will not want to take on "risk" and won't even offer coverage regardless of the premium. At certain levels, we are not talking about insurance companies any longer, we're talking about underwriters for consortiums, investor pools, risk pools, etc. (like Lloyds of London).
Eric
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#9
11-14-2007, 11:34 AM
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No different then human athletes.. It's hard to insure a 1200lb animal that generates 10 mil in revenue a year. Not a game for novice that is for sure!
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#10
11-14-2007, 08:36 AM
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Hybrid Mode
