Frankly, Stronach Doesn't Give a Damn

Frank Stronach has tried the Wizard, quadruple quadrefecta's (or double superfecta's, I can't remember), energy drinks, politics and I'm sure one hundred other things. He's been called some funky names - both good and bad - but he keeps right on plugging.

His latest iteration - let's call it Frank three point oh - involves a $12 million race at Gulfstream. The "Pegasus World Cup" is a race where 12 owners will place hold a spot in the gate by ponying up $1 million each. The winner will receive $7 million, and all entrants below the top three will receive $250,000.

Frank is spicing up the offer - he'd darn well need to, because most will lose the average price of a house in Toronto, Seattle, um, Boise - by offering owners a kicker:

"In addition to the prize money, participants would share in 100 percent of the net income from pari-mutuel handle, media rights and sponsorship.", notes Paulick.

With say $10M in handle, which about 10% (one million) is realized from the takeout, a TV deal that would be hard to fathom at this nascent stage and sponsorship dollars, it's difficult to see them realizing more than $2M, split 12 ways. Many owners will lose a sizeable amount of money, if so.

The above is back of the napkin, but the math seems to not work very well.

Meanwhile, Frank doesn't seem to give a damn, and maybe he shouldn't.

This is a sport where $200,000 was paid for Oscar Nominated to start in the Derby gates as a monster long shot.

This is a sport where millions are spent for a two year old horse who runs 220 yards with alacrity.

It's a sport where millions are doled out to a stud farm for a Mohaymen, and countless others, based on breeding on a piece of paper.

It's a sport where when $7M is won, most of it (after taxes) is sunk right back into the industry, benefiting the same breeders who will likely own a spot in the 12 horse field. 

The math might not be there, but the concept is as old as horse racing itself is. It's "stakes racing" with a little edge.

I would not bet anyone $2 that this will not come off. When Frank has the bit between his teeth - with this overarching love of the sport that's in every fiber of his being - he usually gets something done.

1 comment:

Blaine said...

I've heard of some dumb horse racing ideas, but this one is arguably the dumbest of them all. The math never had a chance from the get-go. Under those circumstances, you leave this kinda stupidity, ALONE!!!!!


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