Are Big Purses Fair In Horse Racing?

The era of the mega race in horse racing began with the creation of events like the Breeders’ Cup Classic and Dubai World Cup. More recently the Pegasus World Cup was launched with an exceptionally large purse, but its conditions changed over time. The 2026 Pegasus World Cup carried $3 million; an older $10-million-plus description should not be read as its current purse. A single rich race can sharply raise a horse’s career earnings total, which complicates comparisons across eras. Some claim that big purses in horse racing are not fair, and that they distort the perception of an animal’s true talent.

The Story of Arrogate

In 2016 the horse racing world saw a potential star emerge in the form of Arrogate. This horse trained by Bob Baffert showed genuine promise and ability by winning several notable races in 2016 and racking up over $4 million dollars in earnings. Some were quick to point out, however, that the wins of Arrogate in 2016 did not come in any of the Triple Crown events. There was a perception that perhaps the horse was doing well because of Baffert’s ability to spot him well.

In 2017, Arrogate began a campaign whose peak results and later defeats need to be considered separately. Large purse opportunities explain much of his nominal earnings total without making his performance inexplicable. By the end of the year his career earnings reached with a total of $17,422,600. Compare this with Secretariat who only earned just over $1 million in his career and is considered by many to be the best horse that ever ran. A current earnings ranking depends on the database, currency treatment and date; it is not a fixed measure of Secretariat’s competitive achievement.

As good as Arrogate was in 2016-17, it would be hard to put his talent level in the same category as a Secretariat. Or an American Pharoah or Justify, the 2015 and 2018 Triple Crown winners. Yet some have bestowed that level of greatness on him simply because of his lifetime earnings. Here’s the truth. The majority of Arrogate’s earnings came from wins in just two races, the Dubai World Cup and the Pegasus World Cup. He finished his 2017 campaign by being soundly defeated in the San Diego Handicap, the TVG Pacific Classic, and the Breeders’ Cup Classic in which he could only muster a disappointing fifth.

What does Arrogate teach us about comparing horses according to their lifetime earnings? The great Cigar earned less in nominal dollars and won 16 consecutive races, but the streak included different race levels. Compare the actual campaigns rather than describing every win as the highest level of competition. Which horse is better? Big purses in horse racing are not necessarily fair to the champions of the past, and they are a flawed way to measure the talent level of a horse.

The Economic Case for Large Purses

The debate over prize money distribution in horse racing often focuses on fairness concerns without fully considering the economic arguments for concentrating large purses at the top end of the competition. Large purses at the highest levels serve several functions that benefit the broader industry beyond simply rewarding the connections who win those races. They can attract international entries and attention, but the size of the benefit depends on participation, funding and what revenue reaches other parts of racing. A large headline purse does not itself prove an industry-wide gain. They incentivise owners to invest in developing high-quality horses rather than selling or retiring them prematurely, which deepens the competitive pool at the top levels.

Large purses also create aspirational narratives — the genuine possibility of transformative financial returns from a successful high-end horse — that attract new investors into ownership. Without the prospect of significant purse money at the elite level, the economics of thoroughbred ownership become even more difficult to justify as a financial proposition, potentially reducing the investment that sustains the breeding and training infrastructure the sport depends on. This does not mean the current distribution is optimal — reasonable arguments exist for redirecting some elite-level purse money toward strengthening the claiming and allowance ranks that form the foundation of daily racing — but it does mean that simply condemning large purses as unfair misses the systemic economic role they play. For more on the economics of horse racing, our articles on is horse racing profitable and investing tips from horse racing bettors provide broader financial context.

Mega Races Have Changed the Game of Horse Racing

It seems as though the creators of races like the Dubai World Cup and the Pegasus World Cup have a determination to outdo one another in terms of purse money. When the Pegasus was first announced, its creators specifically said they had an established goal to be the richest race in the world, an honor that belonged to Dubai for many years. They achieved that goal by making their race worth $12 million.

Did the inclusion of such a large purse change anything as far as the talent of the first Pegasus field was concerned? If we use the example of Arrogate, the winner of that race, as an example then the answer is no. Whether another horse was faster or greater requires a defined metric, compatible race conditions and evidence. The following champions offer useful campaign comparisons; their names alone do not establish a universal speed ranking above Arrogate. Some of those horses include:

• Cigar
• Curlin
• John Henry
• American Pharoah
• Seattle Slew
• Zenyatta

Is it right to put Arrogate in a class above these runners because he won two races with huge purses? Most would say no.

At the same time it is pointless to argue the matter. Horse racing has always been a game of money. It is driven by money, both for the participants and the bettors. No one can fault a race track for creating a mega stakes race. Doing so is probably good for the sport on many levels. But handicappers should always remember that lifetime earnings are a poor way to go about judging talent.

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