Wednesday, January 14, 2015

The AQHA, the non working business model.

     Some of you will find this an interesting observation, and my non horsey friends will probably be bored by it.  It is something though that is important for anyone or entity that tries to run a business.  This is also going to be a small Commentary about Rita Crundwell.

     Over the last 5 years the AQHA has lost approximately 16 million dollars in revenue.  I predicted that the average individual who didn't know Rita Crundwell had no idea how her arrest and prosecution was going to affect the horse industry.  While I don't in any way mean to say that she is the reason for the loss, however the circumstances of her arrest and lifestyle and influence in the AQHA is a prime example of what is wrong with the system.

     You see I have actually know Rita for a long time.  I was originally introduced to her by a good friend and Customer Jane Turner.  The first year that I hauled Jane to the congress she and Rita shared a motel room.  This was before Rita and Jim were so involved and they were cutting expenses and they didn't get a rental car so they drove my truck while we were there and shared a room.  I remember Jane questioning Rita at the time about her relationship and where the money was coming from but I don't remember what the outcome of the conversation was.  It was in the early stages of Rita showing and she was just starting to spend the big bucks.  She was just starting to sponsor events and buy some real quality stock.

    Most people don't have any idea how much it costs to haul world class quarter horses down the road.  Let alone have them in training.  The maintenance and the upkeep.  Paying the trainer, the entries etc.  Not to mention the AQHA and its local, state affiliated could not exist one second longer if it was not for it's vast amount of benefactors.  It's very much like the alumni association silently funding a college powerhouse football program.  Nobody actually knows how much is "donated" but they all enjoy the benefits from it.  The horse industry is one of the finest examples of the haves and have nots that you will ever see.  One thing that nobody sees or understands is how much the Haves are squeezed to help keep the industry up and running.  For every dollar that Rita Spent.  I guarantee she donated the equal amount.  Every local association where she had an outside horse in training and that number was right about 1000, was the benefactor of her wealth.  She donated prize money, she sponsored classes, she covered the costs of prizes. she donated enough money to keep entire state youth teams funded for a year.  She donated huge amounts of money to the congress and to various hunter under saddle futurities every year just to keep them alive so people would be able to show their young horses.  As she donated money, more and more people held their hands out and asked her for more.  Don't get me wrong.  She still stole money, but nobody sat around and acknowledged just exactly how much she was giving away in the process.  Not to mention what she was spending keeping all these horses in training.  Hauling for national titles.  World show qualifying, both Open, amateur and Select world.
   
    My whole point in this is to bring to light just exactly how financially unstable the horse industry is.  If you as an owner, exhibitor, trainer, have an extra penny.  It is unspoken that you're expected to spend it on the industry.  The owners of the shows have to make run them as a business, most anyway, but the AQHA doesn't have a clue how to make a balance sheet work.  The AQHA will most likely find a way to make all this work and keep themselves afloat, but they are starting to look a lot like they are going to end up like the Arab Association has.

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