LEXINGTON, Ky.--(BUSINESS WIRE)--Since launching in 2019, MyRacehorse, a fractional ownership platform making ownership in racehorses affordable to all, has brought Thoroughbred racehorse ownership to over 75,000 people across the globe.
Today, MyRacehorse announced that one of its most successful horses to date, Preakness Stakes winner Seize the Grey, has secured a stallion deal that could yield his owners up to $13.5 million. MyRacehorse and its owners will retain 100% of the racing interest in the 3-year-old son of Arrogate, and 10% of the future stallion rights. 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, an investment made possible exclusively via the MyRacehorse micro-share platform.
“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 currently trained by legendary Hall of Famer D. Wayne Lukas. The colt has won four races in his career, including the G2 Pat Day Mile on the Kentucky Derby undercard; and the G1 Preakness Stakes, the second leg of the famed Triple Crown. His career earnings are just over $1.8 million to date.
Internationally renowned stallion farm Gainesway, home to leading sire Tapit, purchased 90% of Seize the Grey’s stallion rights.
“We are excited to add Seize the Grey to our stallion roster,” said Gainesway General Manager Brian Graves. “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 S. win
· $4 million for G1 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,” said Behrens. “No one buys a racehorse to get rich–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 have already received $225 per share from prior purse earnings, and will now be participating in their pro rata share of the stallion deal, which before taxes could be valued at as much as $2,000 per share. Shareholders will also receive an annual dividend for their 10% 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,” said the 88-year-old conditioner. “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 G1 California Crown and G1 Pegasus World Cup,” said Behrens. “It's definitely a lofty target, but this is the type of horse that allows us to dream big.”
MyRacehorse is one of the few platforms that has securitized fractional interest in horses and is able to sell to both accredited and non-accredited investors. Fractional interests start at around $100. MyRacehorse currently has over 120 active horses, mainly in the United States and Australia, has recorded over 200 wins, and has campaigned multiple graded stakes winners including the 2020 Kentucky Derby and Breeders’ Cup Classic winner, Authentic.
To learn more about MyRacehorse, visit MyRacehorse.com or download the app.
This press release does not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended. These forward-looking statements include all statements, other than statements of historical fact, regarding our current views and assumptions with respect to future events regarding our business, including statements with respect to our plans, assumptions, expectations, beliefs and objectives with respect to the potential distributions under the Seize the Grey stallion deal, future prospects of other race horses in our stable, market opportunity, competitive position, business strategies, potential growth opportunities, market and other conditions and other statements that are predictive in nature. These statements are generally identified by the use of such words as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “forecast,” “estimate,” “expect,” “intend,” “plan,” “continue,” “outlook,” “will,” “potential” and similar statements of a future or forward-looking nature. Readers are cautioned that any forward-looking information provided by us or on our behalf is not a guarantee of future performance. Actual results may differ materially from those contained in these forward-looking statements as a result of various factors disclosed in our filings with the SEC, including the “Risk Factors” section of our Annual Report on Form 1-K filed with the SEC on April 29, 2024. All forward-looking statements speak only as of the date on which they are made, and we undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. Past performance is no guarantee of future results.
