MyRacehorse secured a stallion deal with Gainesway Farm for Preakness Stakes winner Seize the Grey that could yield his owners up to $13.5 million.
MyRacehorse and its owners will retain 100 percent of the racing interest in the 3-year-old son of Arrogate and 10 percent of the future stallion rights, according to a news release from the fractional ownership platform. Shareholders will continue to receive pro-rata distributions from race earnings as well as distributions earned from the stallion deal.
Seize the Grey has 2,570 individual owners who all got involved for a one-time payment of $127 per share.
“Owning a racehorse is one of the biggest aspirations for racing fans, but the costs to own a horse outright are extremely high, with horses often selling for hundreds of thousands if not millions of dollars,” said Michael Behrens, founder and CEO. “Then there are the added training and care expenses, which run about $60,000 per year. Our idea was to use crowdfunding to allow anyone to become an owner. With tens of millions of fans across the world, the collective buying power of the crowd could compete with anyone.”
Seize the Grey, purchased for $300,000 as an unraced yearling in 2022, is trained by Hall of Famer D. Wayne Lukas. The colt has won four races in his career, including the Grade 2 Pat Day Mile on the Kentucky Derby undercard. His career earnings are just over $1.8 million to date.
Gainesway, home to leading sire Tapit, purchased 90 percent of Seize the Grey’s stallion rights.
“We are excited to add Seize the Grey to our stallion roster,” Gainesway general manager Brian Graves said. “Arrogate was cut out to be a top sire, and we are excited to have one of his best sons stand at Gainesway. His speed and good looks should prove to be very popular with breeders.”
The base valuation on the purchase was $3.5 million, with a number of possible bonuses to be triggered by subsequent victories by Seize the Grey. The milestones are:
· $3 million for a G1 Travers (G1) win
· $4 million for Breeders’ Cup Classic win
· $2 million for another Grade 1 win not named above
· $1 million if he’s named champion 3-year-old
“Seize the Grey has been a dream come true for so many of his partners. Owning a champion is an indescribable thrill, but what also makes this special is the fact that each of these partners is participating in the profits,” Behrens said.
“No one buys a racehorse to get rich,” he continued. “It is what we call an experiential investment. You do it because you love the horse, you love the sport and you love the thrill of victory. However, it is an expensive sport, so when you are lucky enough to get a horse of Seize the Grey’s caliber it is important to be able to participate in the upside and be rewarded.”
For Seize the Grey, shareholders already have received $225 per share from prior purse earnings and now will participate in their pro-rata share of the stallion deal, which before taxes could be valued at as much as $2,000 per share. Shareholders also will receive an annual dividend for their 10 percent equity in Seize the Grey’s revenue earned at stud.
According to Lukas, Seize the Grey may have his best races still in front of him.
“He just keeps getting stronger and better, and I am expecting a big second half of the year,” the 88-year-old conditioner said. “I truly believe his best races are yet to come.”
“Seize the Grey is not done racing, and we have some big ambitions moving forward, including the 1/ST Grand 3, a new series launched by 1/ST Racing that provides a $5 million bonus if a horse wins the Preakness, the California Crown (G1) and Pegasus World Cup (G1),” Behrens said. “It’s definitely a lofty target, but this is the type of horse that allows us to dream big.”
Fractional interests with MyRacehorse start at around $100. MyRacehorse currently has over 120 active horses, mainly in the U.S. and Australia. The platform has recorded over 200 wins and has campaigned multiple graded stakes winners, including 2020 Kentucky Derby and Breeders’ Cup Classic winner Authentic.
