After being acquired at auction for $1,000, Medina Spirit won the Kentucky Derby just 2 years later.

The craziest part?

In addition to a $1.86M purse, Medina Spirit might now be worth $50 million.

Here are the FASCINATING financials.

Time for a thread 👇👇👇
1) Let's start with some history...

In 2019, more than 400 horses were sold at an auction in Florida.

The most expensive horse went for $200,000, while a group of 23 horses sold for the $1,000 minimum.

At $1,000, that means they only received a single bid.

(h/t @darrenrovell)
2) Now, just two years and one ownership change later, 1 of those 23 horses has made history.

Medina Spirit completed a wire-to-wire victory at the 147th Kentucky Derby this weekend.

The result?

A $1.86 million purse.

But that's just part of the story…
3) With less than 5% of all racehorses earning more than $100,000 annually, horse racing has long been considered a money-burning experience reserved for elites.

But on the uncommon chance that your racehorse becomes a champion, well, that changes everything.

Here's why…
4) When Medina Spirit retires in 12-18 months, he'll be sent to a "stud farm" — where horses are kept for breeding.

The best horses command $100k+ per live foal (baby horse) that they produce & are expected to mate at least 100x per year.

That's $10 million in annual income.
5) Even more interesting?

Investors will pay top dollar for the breeding rights to a legendary horse, entitling them to free breeding & a share of the stud fees.

They will also attempt to maximize revenue by transporting the horse around the world to increase annual breeding.
6) Here's an example:

After Justify won the Triple Crown in 2018, his breeding rights were purchased for $75M by Coolmore — the "New York Yankees of Horse Racing."

That made Justify the most valuable horse in racing history.
7) After spending $75M, Coolmore wanted to quickly see a return on their investment.

They shuttled the horse between the Northern & Southern Hemisphere, enabling him to breed at least 250x per year.

At $150k per live foal, they would make $37.5M in the first year alone.
8) The craziest part?

Justify was purchased as a yearling (1-2-year-old horse) just a couple years prior for $500,000.

Sure, there are expenses like training, feed, vet, transportation, and more, but regardless, turning $500,000 into $75 million is obviously impressive.
9) As for Medina Spirit, most of his future value depends on how his first set of offspring perform.

If they are fast, the stud fee increases; if they are slow, the stud fee decreases.

As a general guide, a stallion is typically worth at least 300x their stud fee — if not more.
10) Medina Spirit's value will fluctuate over time, but here's the best part:

Despite going up against horses that were bought for $500k+, Medina Spirit won the Kentucky Derby as a $1,000 horse.

As trainer Bob Baffert says:

"He doesn't know how much he cost."

He just runs.
11) If you enjoyed this thread, make sure to follow me @JoePompliano.

I tweet interesting stories about the money and business behind sports every day.
12) Prefer a deeper dive than Twitter?

I write a daily email to more than 35,000 subscribers that breaks down the most interesting topics in sports business.

Sign up here:

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More from @JoePompliano

21 Apr
With 12 of the world's most powerful soccer clubs joining forces to create the Super League on Sunday, the last 48 hours have been WILD.

Confused about what's going on?

Don't worry, here's everything you need to know.

Time for a thread 👇👇👇
1) Let's start with the basics of European soccer.

Each country has its own league; an English league for English Teams, a Spanish league for Spanish teams, etc.

The best teams from each league then play each other in the Champions League.

The winner is the best team in Europe
2) The problem with the current format?

The richest clubs end up financially supporting smaller teams in each country.

Also, with access into the Champions League based on recent performance, no teams are guaranteed entry each year.

This is where the "Super League" comes in…
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17 Apr
Kevin Plank built Under Armour into a $10 billion business.

The part you didn't know?

Without a college flower delivery business, it would have never happened.

This is the wild story.

Time for a thread 👇👇👇
1) Let's start in 1992...

Kevin Plank was a freshman on the Maryland football team, a walk-on that primarily played special teams.

But like any great entrepreneur, he couldn't shake his itch to start a business.

No, I'm not talking about Under Armour...yet.
2) Following the end of his freshman football season at Maryland, Kevin Plank and his friends had an idea.

With Valentine's Day coming up, they knew there would be high demand for roses, but everyone hated going to pick them up.

The result?

"Cupid's Valentine Rose Delivery."
Read 11 tweets
16 Apr
I asked, "what is the most unbelievable sports stat you have ever heard" last week.

Almost 2,000 people responded, providing some absolutely MIND-BLOWING answers.

Here are 10 of my favorites.

Time for a thread 👇👇👇
1) First up, "The Great One" — Wayne Gretzky.

Even if you took away all of Wayne Gretzky's ~900 career goals, he would still be the NHL's all-time points leader based on assists alone.

Even crazier?

He also has the most goals in NHL history.

(h/t @ryanwhitney6)
2) The NFL record for career completion % is 67.8%.

Tom Brady has made the conference championship 73.7% of the seasons he’s been the starter.

Statistically, it’s more likely Brady makes the conf. Championship than any QB completes any given pass.

(h/t @RealAlexBarth)
Read 13 tweets
14 Apr
Terry Fox ran more than 3,000 miles across Canada in just 143 days.

The craziest part?

He did it on one leg while sick with cancer, raising over $800M for cancer research since.

This is his INCREDIBLE story.

Time for a thread 👇👇👇
1) Terry Fox grew up in British Columbia, the middle child of a blue-collar family.

Fox loved sports all throughout his childhood, playing everything from soccer & rugby to basketball & baseball.

He even won high school athlete of the year before heading off to college.
2) As a freshman in college, Terry Fox started to feel discomfort in his knee following a car accident.

When he went to the hospital, he was diagnosed with osteosarcoma — a form of cancer that often starts at the knees.

Doctors said his leg needed to be amputated immediately.
Read 14 tweets
8 Apr
Home of the Master's Tournament for more than 80 years, Augusta National has produced some of the most memorable stories in sports history.

The one you haven't heard?

It involves President Ronald Reagan and a hostage situation.

Time for a thread 👇👇👇
1) First, let's set the stage.

Following a successful career as a Hollywood actor & Governor of California, Ronald Reagan was elected as the 40th U.S. President in 1981.

The only problem?

We entered a recession shortly after his appointment, with unemployment soaring over 10%.
2) After two long years and a close assassination attempt, President Ronald Reagan took a vacation in 1983.

His destination of choice?

Augusta National Golf Club.

President Reagan stayed in the Eisenhower Cabin, a home designed by the secret service for President Eisenhower.
Read 13 tweets
2 Apr
A former Uber driver just signed a $9.25 million contract with the Minnesota Twins.

His story is WILD.

Time for a thread 👇👇👇
1) Let's start in 2013...

Despite being an all-conference pitcher in high school, Randy Dobnak wasn't recruited by any Division I baseball programs.

Instead, he chose to attend Alderson Broaddus University — a small DII school in West Virginia.
2) Randy Dobnak had a good college career, winning multiple all-conference awards.

The unfortunate part?

Even with more than 1,200 players selected in the 2017 MLB draft, @Dobnak_ still didn't hear his name called.

This is where it gets interesting.
Read 12 tweets

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