There are thousands of registered colts in the USA, but just 20 of the fastest and most capable thoroughbreds make the cut to the prestigious Kentucky Derby every year. Since it’s a race of only 3-year-old colts, each horse gets only one chance in its lifetime to be in the Derby. But that doesn’t stop the owners and trainers from coming back to Churchill Downs again and again to try their luck.

Being the biggest horse race in the USA means it’s everyone’s dream to win this race at least once. But this dream doesn’t come cheap. Just to get a horse at the starting gates of the Kentucky Derby race is a costly affair. How much, you are probably wondering. Well, let us give a holistic picture of all the expenses you would have to endure from start to finish.

Just raising a Derby-grade horse is an expensive affair

These thoroughbred horses that race in the Derby are either foaled by the owners or bought at auctions. The auction path is understandably expensive, with horses being sold for millions of dollars even. In the 2023 Derby, the average auction price for the horses on the field was $446,000. And what about this year? In the 2025 Kentucky Derby to be held on May 3, we already have a few million-dollar horses on the field.

One of the contenders, Sandman, was purchased for $1.2 million by his current owners, West Point Thoroughbreds, D. J. Stable, and C. J. Stable. Trainer Michael McCarthy’s Journalism wasn’t cheap either, going for $825,000 at the 2023 Fasig-Tipton Saratoga Select Yearling Sale. The prices reflect the talent of these thoroughbreds, and their owners were willing to pay top dollar for it.

That’s why Winstar Farm, China Horse Club, and Cold Press Racing shared the price of $1 million to acquire Tappan Street. Other than that, the 2025 field will also see American Promise ($750000), Citizen Bull ($675000), Publisher ($600000), Rodriguez ($485000), Admire Datona ($480276), Owen Almighty ($350000), Tiztastic ($335000), and Grande ($300000) ready to show why they’re worth it.

You can understand that one has to be an affluent entity in order to go the auction route. Mind you, these owners don’t just have 1 horse. They have many colts and fillies who are being trained to run in the top-grade races. So, is there a cheaper alternative? You are probably thinking, ‘Can’t a quality thoroughbred be raised to become a Derby-standard colt?’ Well, to start with, the breeding process itself requires spending tens of thousands of dollars to find a quality stud or mare.

Then comes the cost of raising the thoroughbred. It can go up to 50k per year. It includes food, training, equipment, healthcare, etc. And 3 years of such expenses mean a cumulative cost of $150k before your thoroughbred is ready for the Derby. In a Business Insider documentary about the 2024 Kentucky Derby winner, Mystik Dan, we got to know exactly where the expenses go.

The shampoos used for Mystik Dan cost $60, and the conditioners cost $180. And hey, he is a star thoroughbred who has to look the part. That means another $80 for a shine-enhancing moisturizer to give luster to the coat. Besides this, the bridles can cost around $200 to up to $600. Another piece of equipment to take into consideration is saddles. It can cost anywhere between $100 and $1000. Last but not least, there are the shoes. It can be a $200 expenditure, but it can also go up to $400-500 if you choose to opt for a glue-on option. Also, the shoes need to be changed every 4-5 weeks, adding to the maintenance costs.

Now that your horse is ready, he will need to participate in the Road to the Kentucky Derby, which is a series of races that will help you earn enough points to qualify for the Kentucky Derby. And this whole operation again involves a substantial amount of financial commitment.

It costs to be qualified for the Kentucky Derby

The Derby prep races help the horses earn points, and the top 20 on the Kentucky Derby leaderboard qualify for the Run to the Roses. Some of these Derby prep races can earn you up to 100 points, like the Arkansas Derby, Florida Derby, Santa Anita Derby, Jeff Ruby Steaks, Louisiana Derby, etc. But to enter these races, you will have to pay a certain sum. Last year’s winner, Mystik Dan, had owners who had to pay $24,000 to enter 3 prep races, which qualified him for the Kentucky Derby at 18th position in the leaderboard.

The more races you enter, the more chances you have to earn enough points to secure your place in the Kentucky Derby starting line. But hey, the more races you enter, the more costs you incur. Not to mention, moving your horse from place to place involves transportation fees, which also add to the expenses. Owners are known to take a hit of $175,000 in Derby prep entry fees and transportation costs.

It would be heartbreaking if, after so much expenditure, you don’t make the cut for the 20-horse field of the Derby. And hey, let’s say you do make it to the top 20. And you are going to the Kentucky Derby on the first Saturday of May. You have started making strategies, getting your horse ready, and taking care of him, making sure that when the time comes, he outruns every colt on the track.

But wait. Before you start making plans for the big day, have you made the remaining payments? Yes, you still need to make a few depositions to the Kentucky Derby organizers.

You have to pay to run in the Kentucky Derby

Before you ask, no, you have to make these payments, or else your horse is not eligible to run in the Kentucky Derby. These involve a nomination fee followed by a payment of $25,000 in entry fees and another $25,000 to start at the Kentucky Derby main race. Mind you, the nomination fee doesn’t remain constant. If you pay it by the earliest, the fee is $600. But by April, it becomes $6000. And you better not leave it for later, as then the fee amount goes up to $200000.

Crazy, isn’t it? Well, the good news is you are almost done. You need to pay $500 to find an official jockey for the race, and you are set. Nobody can stop you now from participating in the greatest race in America. But you have had to earn it, haven’t you? Generally, it costs the owners around $800k to get their horse just to the starting line. A hefty price tag. In that context, the $3.1 million prize money becomes not just a reward but a just compensation for your efforts.

So, now you know the stakes involved. And you can understand why the race is such a fiercely contested event. And for the fans, it translates into the ‘most exciting two minutes in sports.’