PRE ENTRY DISCOUNT PLAN

ENTRY FEES:

due by 12-31 of the current year

*a ONE TIME pre-entry fee that offers a discounted futurity entry and $500 discount on all derby entries

*derby and futurity remain open to all horses, regardless of pre-entry

*pre entry fees due 12-31 of present year, with all entries being paid in full 90 days prior to Futurity draw

*futurity entries are Open or Non Pro with no penalty for changing divisions

 

age of horse	pre-entry fee	due futurity year	total Futurity entry (Open/NonPro)	Derby entry if pre-entered (Open/NonPro)	Derby entry if not pre-entered (Open/NonPro)
weanling	$250	$750	$1,000 (save $1,000)	$1,000/$500 (save $500)	$1,500/$1,000
yearling	$500	$1,000	$1,500 (save $500)	$1,000/$500 (save $500)	$1,500/$1,000
2 yr old	$750	$2,250	$3,000 ($1,000 more than current)	$1,000/$500 (save $500)	$1,500/$1,000
3 yr old	N/A	$4,000	$4,000 ($2,000 more than current)	$1,000/$500 (save $500)	$1,500/$1,000

 

(fees subject to consideration)

 

reasoning: by only accepting pre-entered horses for the Futurity, you mandate participation at that show.  You are offering a substantial incentive for doing so, both from a marketing standpoint and a monetary standpoint.  However, fees remain affordable in the instance a late entry is desired.  By leaving the Derby OPEN to all horses, regardless of pre-entry, you do not EXCLUDE horses who may have been overlooked earlier in life.  The value of reduced entry fees by pre-entering is a strong incentive to buy entries early, but still invites derby age horses who were never pre-entered at all.  You build an incentive, offer big rewards for participating, but leave the door open for additional income from all sources, and all derby age horses.

FEE & GENERAL CONDITIONS:

Substitutions:

• substitutions allowed until Jan 1 of 3 yr old year, after which no substitutions may be made

• substitutions ONLY for same age horses

• ONLY ONE substitution per entry

• a $500 substitution fee for each substitution will apply, and shall be paid to NRHA

• no other restrictions.

• reasoning: by allowing restricted substitutions, you create a market for pre-paid entries, and encourage people to buy them early.  People know that they will be able to use any paid entries for whichever of their horses work out the best, and then sell the extras - probably for a profit.  By only allowing ONE substitution per entry and only for like age horses, you keep your annual pool of entries pure.  By NOT allowing substitutions in the 3 year old year, you are protecting the 3 yr old entry market and the market for un-used pre-paid entries earlier on.  You are also eliminating most fraud concerns.  The $500 substitution fee is open for consideration, but it would assist in administrative costs and prevent frivolous substitutions.

License & Membership:

• Owners of horse at time of entry must be current NRHA members in good standing

• Horses must have or pay for an NRHA Competition License at time of entry

• A Certificate of Pre Entry for the Futurity and a Certificate of Pre Entry for the Derby will be kept on file in NRHA and will be used upon request when horse is entered

• Certificates of Pre Entry remain assigned to the named horse, regardless of owner, and may be transferred ONCE with the appropriate $500 substitution fee (which will cover administrational costs)

• reasoning: Memberships will remain consistent.  License fees will be collected on more horses overall, without imposing any undue hardship on non-Futurity and non-Derby NRHA competitors.  A Certificate of Pre Entry will pose a nominal cost, but must be issued to each pre entered horse for verification purposes (similar to the NRBC and ABI).  Since these are NRHA's own events, certificates may be referenced easily through the NRHA office when the horse is entered. Substitutions would be handled like a license transfer and the $500 fee, payable to NRHA, would more than cover all administrative costs.

Fees:

• No late fees or penalties (reducing admin costs!)

• If fees are not paid in full the current year, any money paid toward the current year is forfeited to NRHA and the next year's fees apply.  Period.

• reasoning: the current Futurity entry process, with complicated timetables and late fees, involves unnecessary administrative efforts and undue confusion among participants.  The Pre Entry Discount Plan eliminates all that.  With one simple fee schedule and no late fees or penalties, the process is simplified greatly.  If an entry amount is not paid 100% in full by Dec 31 of the current year, the next year's fees apply.  We are all big girls and boys.  We don't need all the shades of gray regarding payment schedules.

DISBURSEMENT OF FUNDS:

10% to owners who paid for entry

 5% to NRHA for administrative costs

40% Futurity

50% Derby

(Monies collected will be for Futurity and Derby related programs only)

reasoning: the 10% paid to owners who paid for the entry of the horse is a simple  incentive.  The bigger percentage to the Derby is open for consideration, but since the Derby appears in more financial distress, this split should provide an added boost to that event.

DISBURSEMENT OF PURSE MONEY:

Total Purse will be paid according to present NRHA payback schedule of choice as follows

OPEN 35%

NON PRO 25%

INT OPEN 15%

INT NON PRO 10%

LIMITED OPEN 5%

LIMITED NON PRO 5%

PRIME TIME OPEN 2.5%

PRIME TIME NON PRO 2.5%

reasoning: many people feel the current NRHA purse money distribution is top-heavy.  Many believe this has resulted in substantial decrease in total futurity entries, particularly open, over the past couple years.  The goal here is to broaden the disbursement and to encourage more exhibitors in all divisions.  Exact percentages are open for consideration, but a big part of this plan is to make ALL levels of members feel they have a shot to win money if they enter the Futurity.  Reducing the lower level payouts would greatly defeat the purpose of this plan.

ESTIMATION OF FUNDS & PURSES using numbers similar to or less than the other plans!

ANNUAL FUTURITY INCOME (PRE-ENTRY + ACTUAL COMPLETED ENTRIES)

beginning 2011, foals of 08

# of horses	total pre-entered amount	1/3 of total horses pre-entered end up being paid up in full for Futurity	1/3 of total horses pre-entered end up being paid up in full for Derby	TOTAL INCOME
500 weanlings	$125,000	$125,000	$125,000	$375,000
1,000 yearlings	$500,000	$333,000	$249,750	$1,082,750
250 2 yr olds	$187,500	$187,500	$62,250	$437,250
25 3 yr olds	N/A	$32,000	$6,000	$38,000
TOTAL				$1,933,000
plus 50 horses @ regular derby entries				$62,500
GRAND TOTAL				$1,995,500

 

reasoning: Dedicated Breeders used 2,800 nominated horses.  The Hamilton Plan used 2,500.  A Plan Apart offers numbers from 1,000 to 2,500.  This plan offers realistic scenarios of 1,775 pre-entries with 1/3 of those actually finishing payments and showing up at the horse show.

 

comparison of current system funds to proposed funds

YEAR ONE
current system income based on 2007 entries	Pre Entry estimated income based on 1,775 pre-entered horses with 1/3 of those, or 591 horses, actually entering the Futurity and Derby per year
150 NP futurity entries $300,000	TOTAL INCOME $1,995,500
300 Open futurity entries $600,000
150 NP Derby entries $150,000
195 Open Derby entries $312,000
450 futurity entries / 345 derby entries
TOTAL $1,362,000
difference: $633,500 to the good

 

FIRST YEAR PURSE (based on $1,995,500)

$798,200 to Futurity

Open (35%) $279,370

Int Open (15%) $119,730

Limited Open (5%) $39,910

Prime Time Open (2.5%) $19,955

Non Pro (25%) $199,550

Int Non Pro (10%) $79,820

Limited Non Pro (5%) $39,910

Prime Time Non Pro (2.5%) $19,955

$997,750 to Derby

Open (35%) $349,212

Int Open (15%) $149,662

Limited Open (5%) $49,887

Prime Time Open (2.5%) $24,943

Non Pro (25%) $249,437

Int Non Pro (10%) $99,775

Limited Non Pro (5%) $49,887

Prime Time Non Pro (2.5%) $24,943