The Joe Pomp Show The Kentucky Derby’s Billion-Dollar Secret
May 2, 2025
Dive into the lucrative world of racehorse breeding that follows the Kentucky Derby. Discover how breeding rights for winning horses can sell for astonishing sums. Unpack the financial strategies of stud farms, including how they maximize profits through geographic breeding shifts. Learn about the intricate relationship between a horse's performance and its stud fees. This fascinating journey reveals the multi-billion dollar dynamics fueling the horse racing industry.
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Breeding Rights Spike Post-Derby
- Kentucky Derby winners' value skyrockets post-race due to lucrative breeding rights.
- Stud fees fluctuate with offspring success, impacting overall breeding revenue significantly.
American Pharoah's Breeding Success
- American Pharoah sold breeding rights for $13.8 million with a $200,000 stud fee initially.
- Despite offspring underperformance, he generated over $100 million in fees over five years.
Fusaichi Pegasus's Breeding Decline
- Fusaichi Pegasus sold for a record $60-$70 million but later had fees drop from $150,000 to $10,000.
- The horse was shuttled globally but lost breeder confidence due to offspring performance.