News
Wait – did regular just win the Kentucky Derby?
This weekend in the two greatest moments in sports, Mage surged to victory at the Kentucky Derby with 15-1 odds. While Mage was by no means the favorite, the surprise win comes after last year’s massive Rich Strike upset (80-1) and marks a trend in the “underdogs” fairing well at the big race.
But what’s more interesting that Mage’s win is who owned the horse. Mage was owned by the app Commonwealth which allows users to invest (on a micro or macro) level in athletes for partial ownership in their success. The app is a partnership with a stable and is primarily focused on horses, however, golfers have now also joined the app and with this victory others may also get involved.
The mission of Commonwealth is in the name – they want everyday sports lovers (particularly horse racing lovers) to get the chance to be an owner. In an industry where stables are mainly owned and operated by the majorly wealthy, the idea that a horse could be owned by a collective of average enthusiasts is pretty revolutionary.
Athletes are motivated to participate because where they may not have the traditional backing of mega firms and stables, the grassroots investment could mean the difference between being competitive and not being competitive. Additionally, some of the mega stables and athletic representation firms also wish to partner to help subsidize their overall operation. It’s a marriage of value. They are able to fund expansion and focus, and every day fans can participate monetarily in the sport they love.
The Kentucky Derby win for Commonwealth is the highest profile win they’ve had to-date. Those who had a $2,500 stake or more in Mage (nothing compared to the cost for most owners) had exclusive opportunities to interact with the horse and jockey and to be treated like the 25% stake owners they were. So not only did they share in the financial winnings, but they got to truly be part of the experience.
Commonwealth’s win is a boon to their own app and idea but also to all the hobby investing groups like Robinhood who have been making trading and investing more accessible and passion driven for every day Americans.
