What does residual value mean in racehorse ownership?

Residual value is the value a racehorse may still have beyond purse earnings—such as resale value, breeding potential (broodmare or stallion), or alternative careers after racing.

What factors increase a racehorse’s residual value?

Residual value is typically supported by pedigree, performance, soundness, consistency, age, physical type, and market demand. Clear veterinary history and a horse that stays durable and competitive can also strengthen resale value.

What are common exit paths that create residual value?

Common exit paths include private resale, public auction, claiming strategies, transitioning into breeding (especially for fillies/mares with pedigree and performance), or retirement/second-career placement for long-term welfare.

How is residual value different from purse earnings?

Purse earnings are the gross prize money a horse wins on the track. Residual value is the horse’s remaining market or breeding value—what the horse may be worth to sell, claim, breed, or responsibly rehome after racing.

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Residual Value & Long-Term Upside

Breeding Value (Fillies & Mares)

Successful fillies retain long-term breeding value after racing:

Broodmare Sale potential at an auction
Foal production revenue
NY Breeders awards for when the horses you breed race and earn purses. This continues for the length of the horses career- while you have ZERO overhead.

Residual Value & Long-Term Upside

Breeding Value (Fillies & Mares)

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