American Pharoah will command $20-40 million per year making baby American Pharoahs

American Pharoah Ends Career with Win
American Pharoah Ends Career with Win

After American Pharoah won the first Triple Crown in horse racing since 1978, it is time for the 4-year-old to start his second career: making future racehorses. If he is successful, his owners will make millions.

American Pharoah will command a stud fee that will pay the owners of his breeding rights $200,000 per foal. This is the highest amount ever for an unproven, first-year stallion, according to Monte Reel of Bloomberg.

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If successful, American Pharoah will likely be mated to over 100 mares during the 5-month mating season. According to Prior, "particularly energetic" horses can be mated up to 200 times per year.

In other words, if successful, American Pharoah stands to make $20-40 million per year in stud fees for the owners of his breeding rights.

And that is just to start.

If American Pharoah proves to be a successful sire who produces champions, his stud fee will go up. Reel notes that a 15-year-old veteran, Tapit, commands a $300,000 stud fee. A fee that high would push American Pharoah's annual earnings to $30-60 million and that number may be low because Tapit doesn't have the brand appeal outside of racing circles the way American Pharoah does.

Of course, there is no guarantee that American Pharoah will always command high stud fees. Future earnings will depend on the success of his foals. If they prove to be excellent racehorses, the fee will likely rise. However, the opposite can happen also.

Still, even without success, there will still be a premium for the chance to own an offspring of this generation's most recognizable horse.

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