Forbidden Kingdom (American Pharaoh), one of the favorites in Saturday's GI Santa Anita Derby, stands to earn a $4-million stallion bonus for his connections if he wins. The “Future Stallion Bonus” is an incentive for selected MyRacehorse-owned horses to earn connections financial benefits if they win a Grade I event on the dirt in the U.S.
“We selected a few really well-bred colts and attached a pre-payment of potential stallion value as a way of providing a more immediate financial return for winning a Grade I,” said Michael Behrens, Founder and CEO of MyRacehorse.
The Future Stallion Bonus was built off an idea of the late B. Wayne Hughes, whose Spendthrift Farm owns 49% of Forbidden Kingdom. MyRacehorse has the other 51% of the horse. As part of the initial offering, MyRacehorse offered 1,020 shares of the horse to investors for $229 each. The stallion bonus amounts to an early payment of $2,040,000 for the 51% owned by MyRacehorse and will be distributed pro rata to the nearly 500 MyRacehorse partners in on the colt. The revenue per share tied to the bonus would be $2,000. The pre-payment will be paid back from the proceeds of a future stallion/breeding deal.
“Most partners get involved in racehorse ownership for the joy, excitement, and thrill of owning an elite racehorse, but of course we all hold out hope of a healthy financial return. This bonus would be the first realization of the potential stallion value of Forbidden Kingdom and another chapter in this remarkable journey,” said Chris Ransom, MyRacehorse's head of finance.
Forbidden Kingdom has won three of his five career starts and remains undefeated as a sophomore. His black-type wins include the Mar. 5 GII San Felipe S. and the Jan. 29 GII San Vicente S., both at Santa Anita. He is trained by Hall of Famer Richard Mandella.
The post $4-Million Bonus On the Line for MyRacehorse Forbidden Kingdom Owners appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.
