The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
May 23--Versatility can make a big difference in the value of a horse.
Dogwood Stable's Palace Malice has won at distances between 6 1/2 furlongs and 1 1/2 -miles. The 2013 Aiken Trained Horse of the Year became the Aiken-based Thoroughbred racing stable's all-time leading money earner with his victory in the 1 mile Westchester Handicap.
But how does this enhance his potential value as a stallion? Dogwood Stable's President Cot Campbell has received calls from six of the nation's leading stallion stations inquiring about whether or not they could buy into the horse, or if the partnership would be interested in standing the Grade 1 winning millionaire at their facility.
"I said no, 'I don't want to discuss that now,'" said Campbell. "Ocassionally one will say, 'Will you receive an offer?' And I'm obligated to do that. I represent partners, and I just can't dismiss that. I have to listen to it, but I have discouraged it. Most of them have said, 'We'll wait to the fall, when it's appropriate.' I would say of the top 10 farms in the world, I've heard from six or seven."
Interest more than likely increased in Palace Malice as a stallion prospect after his 9 3/4 -length victory in the Westchester Handicap, which will more than likely make him the favorite for the $1,250,000, Grade 1 Metropolitan Mile Handicap on June 7 at Belmont Park.
"It's a magic race, and it's super magic when it's part of the Belmont Stakes day card," said Campbell. "Here's a horse that has the brillance to win at a mile and has the stamina to win at a mile and a half."
Palace Malice is a son of two-time Horse of the Year Curlin, and his three consecutive graded stakes victories in 2014 have his potential value at an all-time high, said Campbell.
"We have him insured for several million, which is not enough, but from an insurance standpoint, it's as much as we want to do," said Campbell. "After the Met Mile, depending how that goes, we may increase it."
A horse's value at a Thoroughbred breeding operation is based on what the stud fee would be for that particular stallion prospect.
"Here's a horse that right now, could stand for $25,000 or $30,000," said Campbell. "If you multiply that by 125 or 130 mares a year, then that formula will dictate what their offers will be, of what his value will be."
Palace Malice is sound and healthy and the intention is to race him through 2014. If the colt remains sound, the stallion prospect will be evaluated in the fall to see if enthusiasm for racing is at the same level. Several scenarios will be explored including the possibility of selling the horse to a farm outright, or possibly a piece of the horse to a stallion station, or selling a part of Palace Malice to a breeding operation with the intent of racing him in 2015, said Campbell.
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