ROB'S SHOUT - COSTS OF TRAINING HORSES EXPLAINED

By Robert Heathcote | Thursday, July 29, 2010

Robert Heathcote is the leading racehorse trainer in Brisbane. He has his second successive Premiership all locked up having trained twice as many winners as his closest rival. 'Rob's Shout' - the personal blog of the premiership winning trainer will appear every Thursday on HRO.

“This week I will answer a query I received via e-mail. The e-mail reads”:

‘I pay training fees of approx. $70 per day plus track fees ($4 p/day), gear @1.60p /day, transport @$5 p/day and then add the vet / farrier / vitamin costs on a regular basis per month.

‘Generally this can generate a cost of approx. $3000 a month when the horse is in full training. However other family members baulk at these costs when compared to training fees for a pacer/trotter which is closer to $28 p/day and much lesser additional fees.

‘While I appreciate there is a significant difference in prize-money between the two codes this is somewhat irrelevant in the setting of training fees.

‘Horses from both codes require stabling / feeding / training / vet services / transporting etc, etc, so I simply find it difficult to justify the massive variance in training fees, apart from the add-ons. These are standard costs and the prize-money issue stands aside from this, besides the trainer gets a fixed percentage of prize-money on top of the training fees.

‘I frequently hear that trainers can’t survive just on the fees element of their income - take Brian Mayfield Smith for example. If this is the case the harness racing trainers must receive the dole as supplement.

‘I would really appreciate an honest, full response from Brisbane’s leading trainer so that I have a clearer understanding of the position.’

“The question has been put about justifying and explaining the daily training fees of a thoroughbred race horse as compared with, for example, a standard bred or even thoroughbreds in different areas.

“I do not know what most other trainers charge, but I believe they can vary from $40 up to $85 and $90 per day and I certainly do not know what the standard bred trainers charge. I simply calculate my fees as a thoroughbred trainer on what it actually costs to sustain my business at a profitable level.

“There will also be variances depending on where a particular trainer or set-up is based. Certainly Sydney and Melbourne are much higher than we are in Brisbane and conversely, having them trained in Rocky or Cairns may again be cheaper. No doubt costs will be lower in the country areas for example where rents are lower and maybe the required wages are as well, as I do pay over the industry award in my stable.

“I do not train horses as a hobby. It is a business and quite a big business at that. My daily training fee is currently $65 per day which is calculated to cover all of the weekly costs of running my business.

“These costs include the stable rents of which I have two. One of my stables is located on course is at Eagle Farm. I currently pay $10500 per month for my 30 boxes on course at Eagle Farm.

“This is very high on a comparable scale with other Metropolitan training centres’, ,for example, say Rosehill in Sydney where not only are they considerably cheaper, they have much better amenities and facilities.

“Probably the biggest costs aside from feed bills are staff wages of which number over twenty at any given time. ($50k pm).

“Working with horses is very labour intensive and its one area where I do not fall short on. Plenty of staff is essential to get the job done right! I prefer to be one or two staff over than under.

“Work cover insurances and superannuation as well as general insurances for both facilities, (($80k per year and always rising!) vehicles and personal insurances.

“There are other associated costs which include the training and racing gear which need constant upgrading and repairs, sheets and rugs for the horses and stable bedding which currently runs at about $300+ per load of shavings and believe me, we do use a lot of it!

“There are other costs which include the removal of stable manure and general stable maintenance and upkeep.

“On top of this there are utility bills and water charges along with rates. Water fees have risen considerably this past twelve months as we would all be aware of! I am fortunate that I train at Eagle Farm so the floating fees are generally kept very minimal.

“Without specifying exactly what the actual breakdown is in every case, I can safely say that as the leading trainer in Brisbane, if it were not for the successes I enjoy on the race track which returns the prize money percentages, my business does not make a big profit.

“I suggest that would be the same with most stables, but I cannot verify that. It is purely an assumption on my part. I factor in expected low estimate percentage winnings.

“I can also say that that the hours that most would do in this industry are not fully remunerated but most, if not all, of the participants love what they do!

“I appreciate there are those out there who may well run a few horses and figure it can be done much cheaper. I say away you go and good luck to you.

“Yes, there are also trainers who one will constantly hear say they are 'eating the paint of the walls'. I know because I was one of them for the first three or four years when I started.

“Yes, it's a tough, hard graft which can be cruel and uncompromising at times with the good ones breaking down … but as an old timer once said to me, 'it's also very character building'.

“Those within the industry know the endless hours we have to put in to be successful, but I can truly say that this business just has to be a labour of love otherwise it would simply wear you down.

“I am fortunate that the successes our stable enjoys does make it a real buzz and the gives the necessary kick that we all need to keep it going. Every stable has their highs and lows, irrespective of who you are.

“It can get depressing at times when things don't go right, but I do believe that most will tell you that they are not in this industry for the money!

“There will be those that may well scoff at the figures I have given but I can only call it as it is.

“There will always be someone who can do the job cheaper. If saving a few bucks here or there is your primary concern with a racehorse, maybe having a racehorse being in either of the codes is probably not your best vocation.

“As always, the door is always open to anybody who has any questions they would like to put to me. Please send submissions to editor@horseracingonly.com.au and I will be happy to respond."

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