Minimum purses for Grade 1, Grade 2 races lowered for 2020

The committee that sets requirements for assigning grades to stakes races has lowered the minimum purse levels for Grade 1 and Grade 2 races for the rest of the year, in recognition of the financial hardships facing tracks during the COVID-19 pandemic.

The minimum purse for a Grade 1 race for the remainder of 2020 will be $250,000, down from $300,000, while the minimum purse for a Grade 2 race will fall from $200,000 to $150,000, according to the American Graded Stakes Committee, which met Wednesday and approved the modification. The minimum purses for Grade 3 races and grade-eligible stakes will remain $100,000 and $75,000, respectively.

Only a handful of tracks have been running live since most businesses in the United States shut down in mid-March, and casinos that provide massive subsidies for purses at many tracks have been shuttered. As a result, many tracks will face financial strains in funding purses at levels comparable to last year if and when they open up.

In addition, all racing is currently being conducted spectator-free, with nearly all betting occurring through account-wagering platforms. Racetracks earn smaller shares of wagering dollars from offtrack sources than they do ontrack sources.

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“With the cessation of racing and casino operations, purse accounts are being negatively impacted and the ability to fund graded stakes races in 2020 to the current minimum purse requirements may be impaired,” said a memo that the secretary of the committee, Andy Schweigardt, distributed Wednesday, explaining the committee’s vote.

The American Graded Stakes Committee is administered by the Thoroughbred Owners and Breeders Association.