Prize Money Programs

Question:
I am contemplating purchasing a 4 year old Half-Arabian hunter horse and just noticed that Half-Arabian Hunter Pleasure Open at U.S. Nationals is not a Sweepstakes class. However, Half-Arabian Western Pleasure and Half-Arabian English Pleasure are all Sweepstakes classes, and they ALL have fewer entries consistently than the Half-Arabian Hunter Pleasure class. It is my sincere hope that the Sweepstakes Commission takes this fact into consideration and gives serious thought and planning to add Half-Arabian Hunter Pleasure at U.S. Nationals to the list of Sweepstakes classes offered. It really is bothersome to see that the largest open class in the Half-Arabian Open division (hunter pleasure) is the only one that is NOT a sweepstakes class!

Answer:
The Breeder's Sweepstakes Commission reviews annually the size of both Sweepstakes and non-Sweepstakes classes at the national and regional level. The participation levels are one of a variety of factors that are taken into consideration before a class is designated for Sweepstakes payout. Half-Arabians already receive a disproportionate amount of Sweepstakes money compared to the Half-Arabian income into the program. So, this is another factor that we consider.

Both of the Half-Arabian classes that you mention as being smaller yet receiving Sweepstakes money, had the good fortune of being designated for Sweepstakes payout at the inception of the program. Half-Arabian Hunter Pleasure did not exist at that time. As we all know, it has experienced phenomenal growth since it became a class in the Arabian division.

Because of financial constraints, the Breeders Sweepstakes Commission voted not to add any new classes in 2001. The Commission will continue to consider adding Half-Arabian Hunter Pleasure. In addition to new adding new classes, you should be aware that the Commission is also considering other changes to the program like payout at Class A shows and a Breeder's Incentive. Whether or not we can add any new classes or make any other substantive changes to the Sweepstakes Program this year remains to be seen.

Question:
Since AHA is researching ways to encourage more member participation, both in the national horse shows and the Breeders Sweepstakes, I suggest that the subject of parity of Sweepstakes payouts between purebreds and Half-Arabians needs reconsideration. The Breeding Entry fee (which as we all know is being increased by 33% from $300 to $400 per horse) is the same for Half Arabians as for purebreds. Certainly the entry/office/stall fees at the regional & national shows are the same. And it costs no less to raise a Half-Arabian and send it to a trainer to prepare it for the show ring than it does a purebred. Yet the Sweepstakes prize money for Half Arabians is generally one half of that for purebreds. This makes no sense!

Answer:
Arabian entries into the Sweepstakes program have always helped subsidize the Half-Arabian payout. Thirty percent of the Sweepstakes money available for payout is for Half-Arabians, while only 20% of revenue is Half-Arabian generated. For instance in 1999, $2,731,275 was available for purebred Arabians and $1,159,600 was available for Half-Arabians. Arabian entries generated $2,060,950 in income while Half-Arabians accounted for $533,350. 1999 is very representative, as these are the percentages we have traditionally seen. As you can see, if payout was based solely on what is equitable, Half-Arabians would have to be reduced. So while you are correct that it costs just as much to raise, train, and show a Half-Arabian, they are already receiving a disproportionate amount of the Sweepstakes prize money.

Question:
Is there any thought to allow participants in Sweepstakes to designate nomination fees to a certain discipline? At the very least, perhaps fees could be designated to performance or halter by the participant.

Answer:
The Breeder's Sweepstakes was founded on the premise that any horse enrolled in the program could win in any division for the life of the horse. Designating the nomination fees to different disciplines would violate this basic tenet. So, no, the Sweepstakes Commission has not considered designating fees.

Question:
I am a first time owner of a Half-Arab/Pinto filly. Can I, and how do I, get her Sweepstakes Nominated?

Answer:
If your filly was nominated by the breeder as a Breeding Entry, there is nothing for you to do. She is eligible for Sweepstakes prize money for life. If, however, she was not enrolled, you will have to enroll her as an Original Entry. The cost is $5,000. If you contact the AHA office, someone can help you enroll in the program.

Question:
I'm nominating more than one foal to Breeders Sweepstakes. Do I need a separate check for each foal or is one okay? Can I also use one promissory note for several entries?

Answer:
Whatever works for your bookkeeping will work for our Accounting and Records Departments regarding payment. However, you should be aware that should you put several Breeding Entries and a Nominated Sire on a promissory note for, say, $5,000, if one of the foal's dies, you would not be able to receive a dead foal credit until the entire $5,000 promissory note is paid in full.

Question:
Just wondering why there is no way to back into the Futurity/Sweepstakes programs for unborn foals. I understand the necessity of deadlines, etc., but couldn't some provision be made for purchases of mares in foal (or foals in utero, for that matter) that haven't been nominated by the breeder for these programs? Couldn't the buyer pay a penalty payment that would enable them to participate in these programs? (I realize that you can 'back' into the Sweepstakes program, but the difference in cost between an unborn foal entry and a backed in entry is quite considerable.)

Answer:
The basis of the Sweepstakes program is the nomination of unborn foals. It has always been the policy of the Sweepstakes Commission that foals must be nominated in the year prior to their birth.

Question:
When, if ever, is AHA going to award full money to the Hunter Pleasure AAOTR class splits at the regional level? I was told "several years ago" that AHA would consider awarding full payouts at the regional level in a "few years". Is it any closer to happening now than it was then? Generally speaking, the Hunter Pleasure AAOTR classes are usually close in number of entries, to the Western Pleasure AAOTR classes, which are awarded full money to both age splits. Who makes the decisions regarding payouts to Sweepstakes classes? Are class payouts based on the level of exhibitor support, or is there some other criteria?

Answer:
In 1996 the two age divisions for Arabian Hunter Pleasure AAOTR were added to the regional shows. 1997 saw the addition of these classes to the U.S. National Show and in 1998 they were added to the Canadian National Show. As you know, the Breeder's Sweepstakes prize money has always been split between the two age divisions. In May 1998 the IAHA Breeder's Sweepstakes Commission clarified the split payout in AAOTR classes by stating "if the prize money is split into two adult age divisions, the prize money allocations will be divided equally between the two adult age divisions AAOTR 18-39 and AAOTR 40 & Over."

One of the criteria that is used by the Sweepstakes Commission to determine which classes will be paid and at what level is participation. Every year the Commission reviews participation levels for all classes offered at the regional and national levels, both Sweepstakes and non-Sweepstakes. It is the tracking of the numbers and the trends that they indicate that help us determine which classes might warrant additional funding.

Unfortunately, your assertion that "the Hunter Pleasure AAOTR classes are usually close in number of entries to the Western Pleasure AAOTR classes" is just not accurate. For instance, the total number of Western Pleasure AAOTR 40 & Over horses shown at the regional level was 100 higher than the total number of Hunter Pleasure AAOTR 40 & Over horses shown at the regional level. At both the regional and national level, participation is greater in the western AAOTR division than the hunter pleasure AAOTR division in every category. Also, when we look at the trends, the Hunter AAOTR division has diminished in size every year for the last three years in every category (AAOTR 18-39 and AAOTR 40 & Over both regionally and nationally).

It is up to the Breeder's Sweepstakes Commission to determine if the Arabian Hunter Pleasure AAOTR division will be paid fully in both age splits, and this is reviewed annually. Once again it will be considered this year. Please keep in mind that other factors, like how much money is paid into the program annually and how much money is available for payout, play a significant part in the determination of which classes are paid and if any additional classes will be added.

Question:
In order to "level the playing field", have you considered spitting the yearling/two year old halter classes into two sections with no cross entry in the same regional? One would be for breeder and/or owner handlers the other for professional handlers. The money could be divided. This would encourage more owners to exhibit their horses because they would no longer be competing against both the local and "fly-in" professionals.

Answer:
The AHA Breeder's Sweepstakes Commission has not considered splitting the yearling and two-year old halter classes into amateur handler and a professional division with no cross entry. This, however, is a good suggestion and merits the discussion of the Commission. It will be added to the agenda of the Sweepstakes meeting at the Convention.

Question:
I do not have the original paperwork for the Sweepstakes nomination for my foal because the breeder sent it in. Is there any way I can get an official document concerning whether she has been nominated? This is important to know as soon as possible as I need to fill out the paperwork for her insurance and then will need to show her when she is a yearling. Please let me know. My name on the AHA register is Victoria Kash, my foal is Q T Jewelbask.

Answer:
The foal Q T Jewelbask is recorded as a 2000 Breeding Entry and Victoria Kash is the recorded owner. You should have received a printed certificate because the horse is now registered, however, our records indicate that a certificate has not been printed. We will print a certificate and mail it out to you as soon as possible.

Question:
I have a filly, now years old, who was nominated to the Sweepstakes program as a breeding entry, but we never followed up on paperwork after she was born. What should I do to complete the process and get an official certificate of enrollment?

Answer:
If your filly was enrolled as a Breeding Entry, there is nothing more for you to do as this is a lifetime enrollment. Please send a copy of your filly's registration certificate to the AHA office, attention Sweepstakes, so that we can confirm her enrollment and send you a certificate.

Question:
What exactly is "Sweepstakes nominated" and how does that impact my mare if I plan on breeding her? I plan on having her bred next year to a warmblood, will the foal be eligible for AHA registration? And how does the Sweepstakes thing work in this instance?

Answer:
Sweepstakes nominated means that your horse is eligible to win AHA Breeder's Sweepstakes prize money. A horse is either nominated the year before it is foaled as a Breeding Entry or later as an original entry. The Breeding Entry is very economical and the Original Entry is very expensive. In this way breeders are encouraged to nominate their unborn foals rather than waiting to see which of their produce fulfills their expectations. Either way, it is a lifetime enrollment, and there are no additional fees. This impacts your mare if she is successful in an activity that pays Sweepstakes prize money. It does not, however, impact her for breeding purposes. If the sire of your mare's foal is an AHA Breeder's Sweepstakes Nominated Sire, that foal is eligible as a Breeding Entry. The foal must be nominated by December 31st of the year prior to its birth. The cost is just $400 to enroll your foal so that it is eligible to win Sweepstakes prize money for life. Should you choose to breed your mare to a non-Nominated Sire, you would have to enroll her as a Nominated Mare, which costs $2,500. Clearly the most economical method is to breed your mare to a Sweepstakes Nominated Sire, whether it is an Arabian or not. If you breed your purebred Arabian mare to a warmblood, the resulting Half-Arabian foal would be eligible for registration with AHA as a Half-Arabian. You can obtain registration application forms by contacting the AHA office or you may download them from the AHA website.

Question:
Recently the question has been asked as to where the interest earned by the Sweepstakes Fund gets credited. Does the interest earned get credited to the Sweepstakes Program funds, or does the interest earned get credited to the AHA General Fund? Also, if the interest earned is credited to the AHA General Fund, was this specified when the program was originally established?

Answer:
The interest income from the Breeder's Sweepstakes program has always been credited to the general fund of AHA, after the cost of administering the program is taken out. The original Sweepstakes Trust agreement, which was signed by IAHA President John Wheeler on May 1, 1984, states that "the income of the Trust shall be applied or expended to the payment of the administrative expenses of the Trust, and the balance of the income shall be paid to the Settlor (AHA) to be used as directed by the Board of Directors of AHA."

It seems that every few years a group of similar questions about the Sweepstakes program comes up. The same misunderstandings arise in a repeating cycle, usually led by the interest income issue. By utilizing Ask the Execs and developing an archive of questions and answers, we can make this information readily available to our members.