Thoroughbred pricing: The economics of a Derby winner

A good thoroughbred racehorse is no small investment — colts sired by past champions can cost over $10 million.

A combination of factors, including age, anatomy and racing pedigree, are evaluated as owners seek a stake in the next Secretariat, Citation or American Pharoah – Triple Crown winners of world renown.

As Britain’s richest horse race, the Epsom Derby is particularly influential within the blood stock world.

“It’s the source of all derbies,” says Dermot Farrington, a prominent agent with decades of experience in the international racing industry. “Every derby after this one is secondary, you have to say.”

READ: Michelle Payne targets glory as a trainer

READ: Horse sale of the century comes with royal approval

It's the richest horse race in Britain, but the Epsom Derby only received its name on the toss of a coin.

The tale goes that during the celebrations following the inaugural running of the Oaks Stakes at Epsom in 1779, a new race was proposed. It would be named after the party's host, the 12th Earl of Derby, or one of the guests, Sir Charles Bunbury, depending on the toss.

Derby won the naming rights and the rest -- not least the Kentucky Derby -- is history.

This year's 238th edition of the Epsom Derby is worth nearly £1 million ($1.3 million) to the winning connections.

But, in the early years, drinking, carousing, gambling, cockfighting, illegal bare-knuckle boxing matches and all manner of other activities ran alongside the racing.

That didn't detract from its popularity, with the attendance swelling to around 8,000 in 1795 to 10 times that number in 1823, according to the official Epsom Derby website.

A full cross section of society still attends to this day. Queen Elizabeth II has only missed two races since 1946.

"There's no occasion that gets to you like the Derby," said two-time champion Frankie Dettori. "It's stressful and nerve-racking. You feel the tension, but that's a good thing -- if you arrived at Epsom and you didn't feel it, that would mean the Derby didn't matter. And believe me, it does."

This year's event takes place Saturday June 3. The Derby. The Bunbury. What's in a name?

Epsom Derby: How the race became an icon

Prev Next

Epsom racegoers have borne witness to a number of great stallions win on Derby Day over the years, from Shirley Heights in 1978 to Galileo in 2001.

Jockeys compete in a camel race during the Sheikh Sultan Bin Zayed al-Nahyan heritage festival, held at the Shweihan racecourse in Al-Ain, on the outskirts of Abu Dhabi, on February 10, 2017. The festival includes a camel beauty contest, a traditional souq, a camel auction, and competitions for traditional handicrafts. / AFP / KARIM SAHIB (Photo credit should read KARIM SAHIB/AFP/Getty Images)

Related article Camel racing: The multi-million dollar industry mixing modernity and tradition

Farrington concedes most will probably win a couple of races”to prove their class” — as See the Stars did in the 2,000 Guineas in 2009.

But few races give a better indication of a great sire in waiting.

“Galileo’s become an absolute out-and-out champion sire so I suppose it’s history,” says Farrington.

Visit CNN.com/sport/horse-racing for more news and features

Just as a single roll in the hay with triple crown winner American Pharoah can cost $200,000, significant value is added to a horse when it retires after a Derby win.

“It’s a pretty strong test,” says Farrington. “You can be sure these horses are tough individuals!”

Watch the video above to find out more.