The soon-to-come nine-furlong Pegasus World Cup Invitational is the next stop for the stars of the game. It will bring together 12 horses with a $1 million buy-in just to show up at Gulfstream Park, which is owned by The Stronach Group.
The Pegasus World Cup will be run on January 28 and it will not be in conflict with either the Dubai World Cup or the recently run Breeders’ Cup Classic. California Chrome, the leading money earner in North America and second in the Breeders’ Cup Classic, is seriously pointing for the Pegasus World Cup.
Under the format, the race would feature 12 starters, with each entrant required to pay $1 million to purchase a position in the gate.
Belinda Stronach is the Co-Chairman and President of The Stronach Group and a philanthropist. Long recognized as an emerging leader with vision, the National Post identified Stronach as the most powerful businesswoman in Canada in 2001. She was a Member of Parliament in the Canadian House of Commons for several years and the Minister of Human Resources and Skills Development. I had an opportunity to interview her over some of the specifics of the Pegasus World Cup. She lends some of her insight here.
Thanks for sharing your thoughts on this unique upcoming Pegasus World Cup extravaganza. How did it all come about?
Stronach: The inaugural running of this industry-leading thoroughbred invitational is the vision of The Stronach Group and was created to innovate the sport of thoroughbred horse racing by providing lucrative opportunities for thoroughbred owners while engaging the next generation of fans with exciting new event offerings.
How long did it take to fill the initial dozen slots? Was it a given that Magna International founder Frank Stronach would be involved even before the successful emergence of his runner and Woodward Stakes hero Shaman’s Ghost?
Stronach: It took less than a week after the official announcement for all 12 spots to sell out; and yes, Frank had always planned on purchasing a spot at the race. The Pegasus World Cup Invitational was his vision so there is no way he would miss it!
Were there Pegasus World Cup investors that had to be turned away?
Stronach: Yes. The response was incredible. There were other owners and investors that wanted to participate but we just did not have space.
How will it work for the investors moving forward?
Stronach: The inaugural Stakeholders (which is how we refer to the owners who have purchased a slot) will have the first option to participate in future Pegasus World Cup Invitational races.
How will the $12 million be distributed and what is the formula for distributing the revenue as far as the handle? Will the NBC deal be part of the revenue stream?
Stronach: Based on the total purse of $12,000,000, the distribution is as follows:
1st–$7,000,000 (58.3%)
2nd–$1,750,000 (14.6%)
3rd–$1,000,000 (8.3%)
4th thru 12th $250,000 (2.1%)
All Stakeholders will not only be competing for the world’s largest purse, but they will also share equally in 100% of the net revenue from pari-mutuel handle of The Pegasus World Cup Invitational, all net sponsorship revenue, and any net revenue received from the sale of TV or other media rights.
Do you think the options to sell or lease a berth was attractive to the investors and could it bring in new blood, not just horseracing fans, into the game?
Stronach: I am not exactly sure if that was a deciding factor for any of our Stakeholders. But I do know that this first-of-its-kind concept within the sport of thoroughbred horse racing has piqued the interest of industry elites and newcomers alike. In fact, one of the Stakeholders has never owned a racehorse before.
Are there any restrictions for the owners of the berths or can they make any kind of deal they can to get a starter ready to roll in the race?
Stronach: They have no restrictions on how they market, sell or otherwise convey or lease their entry spot.
By getting in on the ground floor, can owners count on better things to come and is there a certain success rate for this race to make the race a staple?
Stronach: If the event is successful, which we believe it will be, Stakeholders will have the first right of refusal to participate in the following year. Our hope is that this race is successful for many years to come.
When would the bidding for the 2018 Pegasus World Cup get underway?
Stronach: A date has not yet been set.
The Breeders Cup took time to gain momentum but could the Pegasus Cup open the door for other races like it over time?
Stronach: We believe anything is possible. We see The Pegasus World Cup Invitational as a game-changing catalyst in The Stronach Group’s plan to modernize the sport and engage a new generation of fans.
Lastly, with events like the Super Bowl, the four Majors in Golf, March Madness and the NASCAR Sprint Cup series, can you envision the Pegasus Cup becoming part of maybe a Triple Crown for older horses along with the Breeders’ Cup Classic and Dubai World Cup.
Stronach: It would be great if the success of this event would lead to a larger Championship series for older horses. But again, we believe anything is possible so are excited to see where this leads.
Thanks for your insightful input.
