Palermo’s Minor Purse Hike Backfires; Fails to Meet Owner Expectations

Many owners and racing professionals took to social media to express their frustration with the news. The increases range between 350,000 and 550,000 pesos, depending on the category; meanwhile, purses for handicaps remained unchanged

After several months, Palermo has implemented a minuscule purse increase for its races, effective January 18. The hike was so marginal that instead of generating positive momentum, it sparked widespread frustration among owners and racing professionals.

The increases ranged between 350,000 and 450,000 pesos, depending on the category. Meanwhile, in other sectors—such as handicaps—purses remained stagnant at levels that were already considered low.

The industry has long been concerned about the rising cost of daily training rates—whether at the track or on the farm—and the dwindling impact of rewards. In some cases, a win barely covers a month and a half of expenses, which is virtually nothing for the investor.

For instance, a 3-year-old winner (regardless of whether they have 1, 2, 3, or 20 victories) competing over 1000 meterscurrently receives $6,600,000 for a first-place finish. Under the new scale, the winner will receive approximately 7,000,000, a mere 6 percent increase.

Another example: 4-year-old maidens competing over 1400 meters currently earn 4,800,000 for first place; that figure will rise to 5,300,000.

A striking detail is the definitive equalization of the "winner" category, despite the clear difference between having 1 or 2 victories. Furthermore, purses for 2 and 3-year-olds have now been leveled across all categories.

In the handicaps, if Ataka (Señor Candy) were to win the El Centauro—for 5-year-olds and up—next week instead of this past Monday, the payout would be exactly the same: $5,800,000. For handicaps for 4-year-olds and up over the straight kilometer, the prize remains frozen at 7,000,000. The lack of movement in these categories remains inexplicable.

The situation at Palermo is becoming increasingly complicated, evidenced by low field sizes and a significant drop in horses traveling from the provinces. For many owners, it is now more cost-effective to race locally for similar purses,avoiding travel expenses while facing easier competition.

The new purse scale at Palermo is as follows: