What kind of economic impact does a Derby win have on a mares value or a stallions stud fee?
Last year’s Derby winner, Monarchos, was sired by a bargain stud, Maria’s Mon, whose stud fee was $7,500 at the time. After Monarchos won the Derby, the price of a date with Maria’s Mon shot up to $35,000. And, undoubtedly, his appointment book is now full with mares of higher quality, which begins the breeding business’ version of the virtuous circle: The better mares have better progeny, whose winning records attract even better mares at higher stud fees. That’s the ideal world. The problem in the breeding business, as one CPA told me, is that your principal assets have a tendency to die. Q: How big is the thoroughbred industry? Who are the star stallions and mares this year? A: Thoroughbreds are the No. 1 legal agricultural export of Kentucky — ahead of tobacco and behind marijuana, the No. 1 export overall. According to a Lexington Chamber of Commerce report, the horse industry employs 75,000 people and is responsible for 7.5% of the state’s gross business revenue, or $5 billion.
