The Business of Making Money with Horses

By Don Blazer, taught by Eleanor Blazer

Lesson Five

Claiming to Make a Profit

If you think you can claim a race horse for $5,000 and move it up to a $20,000 race, or claim for $25,000 and move into allowance or stakes company, race horses won’t make you any money.

Change your thinking. You are dreaming, not scheming. Dreams do come true, but not often enough to insure a comfortable living.

You’ve got to scheme—it’s the only way to make money with claiming horses.

First, learn to think as a smart trainer, then claim cheap, race cheap and lose the horse cheap. The behavior of other trainers is what will make you money.

The statistics prove this premise, whether or not you wish to believe it.

You can make money only if you are cold, calculating and ruthless. You must steel yourself for a rough time, and you must be willing to try, try and try again.

Claiming horses are horses someone (trainers, maybe not the owners) wants to sell. By setting a claiming (selling) price on a horse, a trainer or owner establishes a level at which the horse supposedly can compete and win.

Most often the horses are worth less than their claiming price, which is an arbitrary figure used as a guide to bring horses into a race with other horses of equal ability and value. Frequently you can buy the horse at the barn for less than his established claiming price.

You can claim (buy) a horse in a race if you hold a valid owner’s license, have a trainer and either have a permit to claim, or have a horse currently racing at the meet. Once you qualify, all you do is follow the rules by filing out a claiming slip completely and accurately, depositing the money (no personal checks) with the paymaster of purses and dropping the claim slip within the allotted time period. If the starting gate opens properly, and the horse you’ve claimed leaves the gate, he or she is yours from that moment on—win, lose, or draw, sore sound, or broken down. If your claim is the only claim and is approved by the stewards, the horse is yours. If others have made a claim for the same horse, there will be a drawing immediately after the race among the claimants, and the winner will be given a pickup slip by the paddock judge. The paddock judge will also give a slip to the former trainer of the horse telling that trainer to deliver the horse to the new owner. Usually a claimed horse will be sent to the receiving barn for drug testing, and you, or your groom or your trainer, will pick the horse up there. Some tracks do not test all claimed horses and have specific areas where the horses are “haltered” by the new owners.

There are a number of other regulations about claiming, all but one of which can be disregarded at present. The regulation to keep in mind is that in many states, you are required to race your purchase during the next 30 days at a claiming price at least 25 per cent higher than that at which you claimed the horse. It’s a move up the claiming ladder. It is what almost everyone wants to do.

Don’t plan on doing it.

It’s so hard to do, trainers call this “being in jail.”

You may choose to run the horse at the higher price (example: if you claimed for $5,000, you must race during the next 30 days for a price of at least $6,250) just to learn about the horse, or to keep the horse fit without additional work outs. But running at a higher claiming price will be a learning experience only once. After that it will be a losing situation.

The horse may run well at the higher price, and even place. But it won’t last, and it won’t make you money. Instead of dreaming, believe the forthcoming statistics; they demonstrate vividly how the cards are stacked against you. However, they also contain the secret for success.

And keep in mind this is horse racing, and horses are they key. A horse which wins 25 per cent of the time for one trainer will most likely win 25 per cent of the time for you. A horse which only wins one race in 12 will probably only win one race in 12 for you. Horses are horses are horses, and no matter what trainers tell you about how good they are, the horses are the key.

Data gathered during a 99-day Quarter Horse meeting at Los Alamitos in California makes one fact very clear: claiming is not normally to the owner’s advantage. It is a rating system used by trainers to establish a level for a horse and keep themselves in business. If a trainer claims a horse for someone else and the horse does well, that’s fine. If the horse doesn’t do well, the owner may get a tax deduction based on the losses.

Good claim or bad, the trainer gets paid his day fee, which is why, when asked about a poor performer in his barn, a trainer may reply, off the record, “He’s better than an empty stall.”

There were 242 claims made during the race meeting being used as an example. They were all recorded, including 19 horses which were claimed twice, and Miss Tripoli, which was claimed three times. Tracing all of them during the next six months was impossible, since some were sent to other tracks, retired, or used for purposes other than racing. Some of the ones which could be accounted for six months later are listed, showing their earnings since being claimed and their current claiming price. The sample (Chart A) is adequate to show trends.

The first pattern which develops from this history of claimers is that although some may run well at a higher claiming price for awhile, the majority tend to drift downward. In six months, 75 per cent are running at the same price, or lower than originally claimed. Of the 25 per cent still running for more than the original claim price, there is no guarantee they will earn money, will be claimed at the higher price, or could be sold for the higher price. Running at a higher price does not mean earning money.

The facts explode another myth—that certain trainers can locate a horse’s problems, then improve him so he goes on to be a great champion. The record shows only three trainers actually showed a profit, and that modest, on their claims. Several consistently lost value with their claims, and none improved their new horses spectacularly.

Chart A lists 28 horses. If an owner paid a trainer an average of $1,000 per month to train, care for, shoe, medicate and race a horse, then the horses listed would have had to earn $6,000 just to break even during the six months following their claim. Only five of 28, or 18 per cent, did that.

CHART A

Partial Listing of Claims

242 claims, 28 listed, for 12.6% representation

	NAME	CLAIM	EARNINGS SINCE	CURRENT CLAIMING
			CLAIMED	PRICE
1	Kimala	5,000	3,000	8,000
2	Swiss Ban	3,000	3,000	3,000
3	Dos Rojos	10,000	2,200	6,250
4	Savan Dev	7,500	4,000	12,000
5	Bright Poli	3,000	500	Claimed 3,000
6	Shake Kid	10,000	300	5,000
7	St. Blach	15,000	1,400	8,000
8	Beat The Band	4,000	1,000	3,200
9	Make A B	10,000	4,000	12,000
10	Pay the N	7,500	3,500	6,000
11	Hey Doc	5,000	1,400	4,000
12	Got the Ca	4,000	6,800*	12,000
13	Racin Fever	4,000	1,200	3,200
14	Lil Ranch	8,250	1,000	5,000
15	Fiery Com	5,000	5,200	5,000
16	Papa La Ru	12,500	10,000*	10,000
17	Mypawas	10,000	3,000	Allowance
18	Wanyo	5,000	3,200	12,500
19	Triumphant	10,000	6,700*	12,000
20	Bright Polic	3,000	4,200	3,200
21	Fair Brandy	5,000	2,700	8,000
22	Grove Line	7,500	10,000	Claimed 8,000
23	Shake Kid S	5,000	12,500*	8,000
24	Him a Injun	8,500	900	12,000
25	Pal and Pal	10,000	3,300	10,000
26	Sheckys Im	12,500	2,500	8,000
27	Diala Six	12,500	2,840	Allowance
28	Star	8,250	4,400	12,500
	Totals	211,000	104,740	222,350
	Average	7,535	3,740	7,941
			* Shows Profit

Analysis of Chart A reinforces the conclusion that claiming is a business for trainers.

(It is possible for you to become a trainer. It is not hard to do. Training race horses does not take a genius. If you want to make money with claimers, becoming a trainer to eliminate some of the daily expenses is worth consideration.)

The first trend (which is not shown) is that 82 per cent of the horses claimed were geldings. This is consistent with the fact that approximately 83 per cent of the horses in mixed claiming races are geldings. As geldings are good only for racing, this insures the trainer will have horses to train; they will not be taken away to the breeding farm.

While the five horses earning their keep did not earn a big profit, they didn’t lose money. That’s not bad. It’s good. Because if the owners of other claimers had followed the rules, they very will may have earned profits also. In any case, the 18 per cent which made money demonstrates potential. You’ll see how very soon.

Three trainers did make a profit on their claims. Interestingly, those trainers did not claim for an owner, but instead, claimed for themselves. At the very least, this would indicate when a trainer finds a good claim, he takes it for himself. For an owner, a trainer claims rather indiscriminately. (Remember, I said you had to be cold, calculating, and ruthless. I’ll also give you another rule to live by when claiming—use the guides in this book, not the trainer’s judgment.)

Now for potential.

Only two-year-olds have big potential. They have big money handicaps and stakes ahead. But there are few races with an inexpensive claiming tag for two-year-olds. Owners always tend to hope their horses will become the fastest on the grounds, even though the horses have proven they will not; therefore, since hope springs eternal, owners do not want to lose horses for a cheap claiming price.

However, when a maiden two-year-old is dropped to the bottom claiming price, has not had more than three races, shows at least one good speed index or some good works, he or she is a prospect to claim.

With only works to judge the horse, or less than four races, it is a pretty safe bet neither the owner, trainer, nor jockey has a true idea of the horse’s future ability. In addition, a horse at the bottom as a two-year-old is not at the bottom as a three-year-old. (For race horses, the three-year-old year is the easiest, since they can run in races for 3-year-olds only and in restricted races: non-winners of two, non-winners since a certain date, fillies only, etc.)

Most two-year-olds tend to improve with practice and age. It is only the starts which win the first time out, or overcome minor mistakes to run an excellent race. Most good, solid horses develop as they go along. In addition, with only three or less races, the chances are fair the horse is still relatively sound. (Sore shins are most common problem and that can be managed.)

Two-year-olds with slow works, slow speed indexes, more than three races without a win and currently not racing against the very best, are not good claims if you intend to make money. Don’t claim them.

Three-year-olds are a good claim only at the beginning of the year. Three-year-olds with less than six months of racing left are poor claims. Very soon they’ll be racing with older horses, and that most often squeezes their earning potential. Don’t claim from this category.

But, if you’re interested in a three-year-old, it must have at least six months of racing left as well as meet all the other rules for claiming.

Older horses, four and up, seldom make money for an owner. They are a good claim to keep a trainer in business because they at least produce “day money”. See Chart B. Only claim older horses which win at least 25 per cent of the time.

From Chart B, several interesting patterns emerge. The figures are accurate, while the patterns are logical conclusions drawn from those figure. (It is impossible to know the actual thoughts behind the claims.)

Twenty-nine trainers claimed 57 horses. Only 12 of the claims made money—21 per cent of the total. Four of the claims were for the trainers, so that reduces the owner’s money-making percentage to only 14 per cent.

CHART B

Analysis of Claims by Trainer

	NAME	CLAIMED FOR	PRICE	EARNINGS	CURRENT CLAIMING
				SINCE CLAIMED	PRICE
1	Brittos	other	8,250	1,000	5,000
2	Campbell	other	10,000	4,000	12,000
3	Cooper	other	7,500	800	4,000
4	Cooper	other	10,000	2,200	6,250
5	Cooper	other	5,000	5,200	6,250
6	Cooper	other	10,000	6,700*	12,000
7	Cooper	other	15,000	9,000*	16,000
8	Cooper	other	12,500	2,500	8,000
9	Domingu	other	4,000	2,400	4,000
10	Francisco	self	3,000	4,200	3,200
11	Francisco	other	7,500	3,500	6,000
12	Frey	other	4,000	1,200	3,200
13	Greenslat	other	5,000	3,200	5,000
14	Hall	other	5,000	2,200	6,000
15	Hall	other	5,000	4,800	10,000
16	Hart	other	7,500	4,300	3,200
17	Hart	other	8,250	600	6,250
18	Hart	other	7,500	7,200*	16,000
19	Hart	other	8,250	4,400	5,000
20	Hart	other	7,500	11,400*	12,000
21	Hart	other	5,000	1,400	4,000
22	Halloway	other	7,500	4,000	12,000
23	Halloway	other	10,000	300	5,000
24	Halloway	other	12,500	1,400	8,000
25	Jackson	other	3,000	3,000	3,000
26	Jackson	other	5,000	500	5,000
27	Jones	other	3,000	5,300	3,000
28	Lopez	self	12,500	10,000*	10,000
29	Lopez	self	5,000	10,000*	8,000
30	Maldonat	other	15,000	4,700	12,500
31	Maldonat	other	10,000	8,200*	16,000
32	Olemach	other	8,500	900	12,000
33	Pisciotta	other	10,000	2,600	6,250
34	Proctor	self	3,000	5,200	5,000
35	Rothblu	other	7,500	10,000*	10,000
36	Rothblu	other	4,000	300	4,000
37	Rothblu	other	12,000	2,800	Maiden
38	Schvanev	other	10,000	3,300	10,000
39	Steinmiller	other	5,000	6,500*	4,000
40	Steinmiller	other	4,000	3,100	4,000
41	Steinmiller	other	6,250	3,700	10,000
42	Steinmiller	other	4,000	1,000	3,000
43	Stokes	other	3,000	2,400	5,000
44	Vischer	other	5,000	2,200	5,000
45	Vischer	self	5,000	6,400*	6,250
46	Welch	other	3,500	4,600	4,000
47	Wells	other	5,000	3,000	8,000
48	Walker	other	5,000	3,800	4,000
49	Wimber	other	3,000	500	3,000
50	Wenzel	self	4,000	6,800*	12,000
51	Wenzel	self	5,000	2,700	8,000
52	Wenzel	self	20,000	5,600	25,000
53	Woodho	other	10,000	3,000	stakes
54	Woodho	other	8,250	2,800	6,250
55	Woodho	other	15,000	11,700*	16,000
56	Wood	other	8,500	600	12,000
57	Wood	other	8,500	2,800	12,000
				* Shows Profit

Of the eight claims which made money for the owners, all were part of several claims made by that trainer. When all the claims for that trainer were combined, none showed an overall profit.

On the other hand, a claim made by a trainer for himself is practically risk free. The trainer doesn’t have the high overhead of an owner. The claim provides the trainer with a horse to run, and as the trainer normally runs the horse one step below the original claim price, he stands to make a little money, even if he loses the horse.

Don’t let Chart B give you the impression all trainers exercise poor judgment in claiming for owners, or that trainers don’t know how to make good claims. What Chart B doesn’t explain is that many of the claims were probably insisted upon by owners, even when the trainer recommended against the claim. Sometimes following a claim, owners refuse to allow the trainer to make money with the new horse because the owner won’t let the horse run at the original claiming price or lower. Also, many claims are made to get the horse as a broodmare prospect. The horse may run again at a very high price with the prayer she’ll increase her earnings a bit without the possibility of being taken. This is foolish, but is done quite often. Usually the mare could be purchased outright for less than the claiming price. And most often she doesn’t make money at the higher claiming level.

Some claims lose money just on bad luck—injuries being the most common.

Study Chart B and you will see that Cooper claimed six horses which earned $26,000 in six months, less an estimated $36,000 in training expenses in six months, for a loss of $10,000 in the six month period. Trainer Hart claimed six horses earning $29,000, with a $7,000 loss.

Trainer Rothblum claimed three horses earning $13,000, but had a loss of $5,000 for the six months. Trainer Woodhouse made one good claim which pulled two bad claims up to the break-even. One other trainer broke even.

The losses and break-even for these claims for owners are based on the owner paying $1,000 per month in training expenses. So the earnings, less the expenses for six months, produce the loss.

Only one trainer, Lopez, shows a profit—and that is from horses he claimed for himself.

So how do all these negative factors show any potential for you to make money with claimers? Easy! The horses which make money for either owners or trainers follow patterns the statistics don’t show. You must study the horse’s form and take a personal look at the horses and their races in order to have the information you need to follow the rules to making money with claimers.

You cannot violate a single rule!

“That’s tough,” you say.

You bet it is. But not violating a single rule will make you money, while others who are violating the rules lose money.

Here are the rules:

1. Find performance consistency at a single claiming level (price). A horse which

wins one in four for another trainer will most likely win one in four for you.

A horse to be claimed must be consistent, either in his works or his races. With two-year-olds, this is especially important since the horse will not have much form.

Consistency means the horse has earned money—first through fifth place—in no less than 75 per cent of his starts. Consistency can also be “on the board”, meaning first, second, third, or fourth 50 per cent of the time.

No consistency, no claim.

2. A horse may be claimed at his consistency level, or one level below. He cannot

be claimed above, or two levels below his consistent price.

As an example, if a horse has been running consistently on the board, or earning a check at the $6,250 claiming level, then he should only be claimed for $6,250 or $5,000. A drop below $5,000 means the trainer is trying to get rid of the horse, rather than just dropping to win. Trainers drop big to sell because they know there is always someone who thinks he can fix the horse and make him better. You know it can’t be done, so let someone else lose money trying.

3. If you must run the horse within 30 days to keep him qualified to race, and

you must move him up 25 per cent, then run the horse one step above his

claimed price. After that, drop him back to the price at which he was claimed;

or if you want to make more money, drop him one notch below his claimed price.

If you are not required to “jump” the horse during the 30 days after claiming,

run the horse back at the price for which you claimed him.

Keeping the horse at the price claimed makes all trainers think there is something wrong with the horse, and they usually won’t touch him for at least two races. A drop one notch below the original claim almost assures you no one will take the horse until they’ve seen him run at least three times, even though he is probably winning.

If the horse was consistent at $6,250, for example, he’ll do well at the $5,000 claiming level. He’ll make you even more money if you race him for $4,000. And 99 times out of 100, he won’t be claimed. If he is, you’ll probably still make a good return on your investment just off the purse money he has earned.

For everyone else, the challenge of claiming is moving the horse up the claiming ladder. That’s an ego trip. For you, claiming can be fun, but can’t be about ego; it is a way to make money—so never move a horse above his consistency level. (If you get a super-horse and can move him up it will be very obvious, and the rule becomes “let your profits run.”)

Someday, if you claim often enough, you’ll get a horse which can move up dramatically. If you get one, move him up, and immediately start trying to sell him privately at an inflated price. You will be selling potential again. No horse stays up forever, and you must take a big profit whenever it is offered if you expect horses to make you money.

4. Never claim a maiden three-year-old.

Once in every 100 claims you hit a big winner, but most of the time you’ll lose money. The only time you might risk taking a three-year-old maiden is if he or she has superior breeding and has been running with stakes company. Suddenly the horse is dropped into the claiming ranks, appears sound and is cheap. This horse may produce an income if no attempt is made to “move the horse up”. Most likely the horse has a major problem of some kind, and will have a limited racing career. I say stay away from the horse. Taking a three-year-old maiden is just gambling and a violation of the rules. But on occasion, if all the factors add up to potential, and you don’t mind losing the money, drop the claim slip. Just don’t blame me. You gave in to temptation.

5. Claim only from trainers who are less than the best.

Good trainers get all the run a horse has to offer, so the horses are usually consistent. They should be consistent for you too, but often it will take time to figure out the horse, and while you are doing it, it is costing you money. Take horses from trainers who have large stables, or have poor in-the-money records. If you followed the rules, the horse you take will be a good one in spite of the trainer, and should be easy to keep going on a consistent money-making level.

6. Claim a horse which doesn’t appear to be in top physical condition, but is still

consistent.

Don’t take a horse which needs running bandages to get through a race. Take a horse which has a poor hair coat or even one which is under weight. You can’t fix chipped bones or torn tendons, but you can easily and inexpensively fix teeth, deworm and feed adequately.

Even though you know you can improve the physical condition of the horse, continue to run at, or below, the original claiming price.

7. Never claim from the lowest claiming price offered at the racing meet. If the bottom

claim is $3,000, the lowest claim you should make is $4,000. Once a horse is

at the bottom, there is no place left to go. You cannot find an easier racing level.

The only exception to this rule applies to two-year-old maidens. The bottom for a

two-year-old is usually at least two steps higher than it is for three-year-olds.

8. Never claim a horse you know has an injury.

9. You cannot move your horse to a higher claiming level until he has won for you

at the claimed-for price at least twice.

If you claim a consistent $6,250 horse for $5,000, run the horse back for $5,000. If you are required to run at a 25 percent jump, then do it once, and get back to the $5,000 level, or even better, to the $4,000 level. This should assure you of at least a paycheck. (If you claim for $5,000, run for $4,000, win the purse, but lose the horse, you probably make no less than $1,000 profit considering the winner’s share should be $2,000 or more.) If you don’t win and don’t lose the horse, any income helps cover training costs until the next race, which the horse will most likely win—if you have been following all the rules. Once the horse wins twice, you can jump him one claiming level. If the horse is getting paychecks, and is claimed on the first or second win, I guarantee you’ll be making money.

Once the horse has won twice, move him up one level and keep him there for four races. He should win one in four. If he does, fine; if he doesn’t, drop him to the original level. You can jump the horse again if he stays in the money consistently and wins twice again for you at that level.

Make no excuses for the horse’s performance. If you run the horse five times at the claimed-for level and he doesn’t earn money at least four times (sometimes bad racing luck is a fact—things happen, but are not an excuse), drop the horse one level and try him five more times. He should earn four out of five times, or he gets dropped. He cannot move up until he wins two races at that level. If there is no lower level at the track at which he is racing, find a weaker racing program and send the horse there.

These rules apply as long as the horse stays sound. If he has a physical problem, decisions will have to be made.

Getting sentimental about a race horse or fearing he’ll be claimed will cost you money. You cannot make money with a horse if he isn’t earning.

Of all the ways to make money with horses, claiming is the toughest. But you can do it, if you don’t violate the rules.

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