I don't think I'll ever understand the economics of horseracing even if you include the intangible entertainment value of horse ownership.

The vast majority of owners lose their shirt.

Yet despite the cumulative massive losses, the prices of yearlings remain preposterous enough to support preposterous prices for breeding stock. That in turn encourages the early retirement of the best horses. The early retirement of the best horses reduces the potential for promoting the sport and generating new fan interest. That in turn reduces the potential for a larger handle, higher purses, profitability for owners etc....

Not only that, but these early retirements at ridiculous prices often allow lucky lottery winner type owners to cash in on horses that haven't proven themselves to the extent that champions of the past did.

I won't even start on the drug problem in graded stakes these days and the impact that could be having the breed.

It's almost like the economics of the entire game are geared towards minimizing the quality of stock that goes to the breeding shed, minimizing the potential for purses to increase, minimizing the potential for more owners to become attracted to the game and generate a reasonable return on their investment, minimizing the ability of the long time core fan base form actually enjoying the sport etc....

The only industry dumber than the horseracing industry is the airline industry and that's only because a dumb ass horse owner can have a little fun while he's going broke.