Horse racing for fun and profit

Gary Knight is known very well around town for his volunteering and his philanthropy at the library and the Education Foundation, just to name a few. As a retired attorney, law professor and owner of an IT company, the thrill of competing never left, even in retirement.

He had a yearning deep inside, like maybe being a sport franchise owner and “with a lot of research, I found I could afford to play sportsman,” Knight said. Owning a Triple A baseball team was out of the question moneywise however.

More research pointed to horse racing, but not on big stakes horses, like the Kentucky Derby or owning Secretariat or American Pharoah. There is a part of horse racing what is called Claims Racing.

“It’s (called) the Claiming Game, 95% of races are these,” Knight said. The horses are a known commodity, for example worth $5K. When the horse wins a claims race you as the owner are agreeing to sell the horse for the $5K price if he wins.

Prospective owners put their names in the claim box. Multiple claims are determined by a drawing of lots. So, in essence, the owners act as a general manger of a baseball team, switching horses in different races. This is where his research helped in being a successful owner.

In this game, the trainer has to be good, that is, not only knowing your horses but also knowing a lot of other horses that will be in races against your horses. Knight looked for one.

“I found the best claiming trainer in the U.S.. Karl Broberg was the tenth money winner, but first in total wins. I’m incredibly lucky to have him as a trainer. At that time he was looking for new owners,” he said. “He knows every horse at every track, knows every trainer at every track.”

“Karl at the interview said ‘Gary what do you want? To break even and have fun? No I want to make money,” Knight said.

Knowing what race to place each horse in, and against which other horses is what Broberg does and does very well.

“Having Karl practically guarantees success,” Knight said. Owning horses was the way to go.

The horses are well taking care of in the facilities at each track that is in operation. Each track is limited by law, to operate only on certain weeks. But the horses’ facilities are superb, no matter what the track.

“A happy, well fed well treated horse will win for you,” he said. But there are lots of facets to this game. First, the income.

Splitting the winning purses has 1st place winning 60%, 2nd 20%, 3rd 11%, with 4th and 5th winning legible amounts.”

But expenses must be paid starting with 10% for the trainer, then veterinarian bills, jockey fees, transportation, the list is quite long.

Then there is paperwork to be filed, tons of each for each state including taxes, also to the IRS.

“As an owner, I am responsible for paperwork. I enjoy paperwork.”

There are also fun things to take care of, as an owner. Knight designed his colors for the jockey to wear at the races to identify what horse is his. Knight decided on gold with black epaulets and a black band on the arms. But really the best fun of all though, are the races themselves.

“It really is fun watching the replays.” Knight said.