The Kentucky Derby dream isn't the only thing on the line for owners of Forbidden Kingdom in Saturday's Grade 1 Santa Anita Derby. Victory for the son of American Pharoah at Santa Anita in Arcadia, Calif., would also trigger a $4 million stallion bonus payout to his connections.
The brainchild of the late B. Wayne Hughes, the Future Stallion Bonus was designed as a special incentive for selected MyRacehorse runners to provide owners any early benefit of achieving success on the racetrack. Forbidden Kingdom is co-owned by Spendthrift Farm LLC and MyRacehorse, the racehorse ownership group offering SEC-qualified fractional ownership opportunities.
“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 1,” said Michael Behrens, founder and CEO of MyRacehorse.
Forbidden Kingdom was purchased for $300,000 at the 2020 Fasig-Tipton Selected Yearling Showcase in Kentucky, with MyRacehorse securing 51 percent and Spendthrift 49 percent. To date, Forbidden Kingdom has career earnings of $434,000 and has Grade 2 victories in the San Vicente and San Felipe Stakes at Santa Anita.
As part of the initial offering, MyRacehorse offered 1,020 shares of Forbidden Kingdom to retail investors via the MyRacehorse app and website for $229. 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. The revenue per share tied to the bonus would be $2,000, which, for one owner who purchased 50 shares of the colt in 2020 could lead to a five-figure payout. 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, head of finance at MyRacehorse.
Heading into Saturday's race, Forbidden Kingdom takes on a very competitive field including the highly touted and accomplished Messier, a colt named after Hall of Fame hockey star Mark Messier.
“To be the best, you have to beat the best and the projected field for the Santa Anita Derby is definitely top of the class,” said Roderick Wachman, head of bloodstock and stable management for MyRacehorse. “If Forbidden Kingdom does come out victorious this Saturday, he would solidify himself as a top-tier stallion prospect. He would be the best son of American Pharoah, with incredible speed and two-turn dirt success making him an extremely desirable stallion prospect.”
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