Season 21 Breeding Changes
For Season 21, we are announcing some changes to the way that breeding fees will be calculated, as well as some modifications to the Executive level PFJC membership free breeding report entitlement.
Let’s walk through the changes one by one.
Breeding Fees
The volume of studs on the market at the floor price indicates that there is some missing price discrimination between studs. In other words, studs of all different qualities are listed at identical price points due to the floor price minimum. While we are not ready to remove the floor price minimum, we do think that we can allow somewhat lower effective prices as an incremental step.
A related item is the current balance between breeding fees collected and track owner income from race entry fees. We intend to increase the number of races to match a growing user (and horse) population, and we intend to do so with more and more profit boosted races. To facilitate this, we will be shifting more of the platform fee burden to breeding from racing.
To address both of these issues, the current 20% breeding fee that is added on to the purchase list price for public market breeding will become a 25% fee that is internal to the purchase price. The easiest way to see the effect of this is to lay out a simple example of a floor price stud listing.
The key facts to note are that the total purchase price in the example above is actually lowered by 800 Derby, or 16.7%. This allows for lower price exploration for certain studs. Also, the amount of platform fees are raised by 200 Derby, helping to enable our planned racing economy expansion.
Private Breeding
Based on deep discussions with the entire community and focus on the ecosystem as well as analysis into its impact and usage, the private breeding feature will be retired. An effective substitute may now be achieved by listing a stud above market price. The listing stable will have access for 25% of the list price, and if any covers do sell, they will be at a significant premium to the market.
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Free Breeding Reports
The final change to discuss regards free breeding reports allocated to Photo Finish Jockey Club Executive level members. To be an Executive member of the PFJC requires the ownership of 20 Photo Finish PFPs (Stylish Studs, Marvelous Mares). Before the recent change divesting those PFPs of their Crown allocations to their derivative Voucher NFTs, the price to acquire 20 was quite substantial. Today, becoming a member at the Executive level can be done for a few thousand dollars.
The current rules are that an Executive will receive 10 free breeding reports for each breeding age filly they own at the rollover of each season.
As a result, we are seeing both the number of Executive level members increase as well as the free breeding reports granted increasing to such a level that they have begun to invite botting behavior. We don’t think this is healthy for the long term viability of the game, and so are adjusting the free report allocation. It will remain at 10 per breedable filly per season, however, it will be capped at 100 breeding reports per season.
At 100 breeding reports, the retail value of the reports provided is $5,000 per season, more than justifying the cost to acquire 20 PFPs and obtain Executive level membership in the PFJC, not to mention the other advantages that come with that membership level.
Final Thoughts
Photo Finish™ LIVE is setting the stage for significant growth, as we hope you will note from recent and imminent announcements. We believe these modifications to the breeding system put us in a better position to capitalize on these opportunities.
