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Why do the payments go up drastically when initial nomination is made after the horses 2nd year?

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Why do the payments go up drastically when initial nomination is made after the horses 2nd year?

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Because the later a horse is nominated, the greater the advantage to the owner because he’/she will have more information regarding the horse’s ability, talent and trainability at that age, therefore there is less risk. The lower nomination rate goes to those that are taking the higher risk.

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