example for state-bred winners, which is only payable to horses that meet the bonus condition. If the condition is not met, the total amount paid out may be lower than the stated purse. Alternately, a bonus may be shown as an addition to the purse. For example, in the 2004 Kentucky Derby, Smarty Jones earned a $5 million bonus on top of his share of the regular purse distribution, resulting in what was then a record winnings of $5.8 million. In the case of the Breeders' Cup, the current purse structure includes an 8% travel allowance, which covers travel expenses for out-of-state competitors that have won a designated Breeders' Cup Challenge race earlier in the year. Thus the value of the race is 92% of the purse. Added money refers to situations where the value of the race is increased by some or all of the entry fees. This includes nomination fees, which are required in advance of the event, and starter fees, which are payable at the time the event is held. All such added money is paid to the winning horse's owner in addition to the regular purse distribution. In the past, added money was a more significant portion of the winnings of major races, and increased the disparity between the amounts paid to the first place horse and the second. To illustrate the impact, the Kentucky Derby's purse was changed from an added money basis to a guaranteed basis in 1996. Churchill Downs paid some added money on top of the guaranteed amount in 1996 due to a large field, but not in 1997. The result was as follows: References Horse racing