The 2007 Yukon Quest's purse will now total $200,000 US thanks to some help from the territory's Department of Tourism and Culture.

Tourism Minister Elaine Taylor announced this morning that the government will be contributing $50,000 to the 1,600-kilometre sled dog race specifically for 2007 and 2008 prize money.

'The Yukon Quest is a really important event for promoting the Yukon to the rest of the world,' said Taylor. 'It is actually the only international sled dog race in the world. It focuses on our northern values and it focuses on dog care two distinctive elements that other races do not.'

The investment takes the Yukon government's annual contribution to the Quest to $200,000. It has previously provided the race with $150,000 per year for the marketing and promotion of the event.

The race announced in May it intended to raise the purse from the $125,000 mark to $150,000 by seeking more sponsorship. It will be the first time the prize money has increased in 10 years, but the commitment was made prior to the cash being secured.

With the Yukon government's announcement this morning, the Quest has secured $175,000 and is still seeking the remaining $25,000.

The 2007 purse will now be 60 per cent larger than this year's.

The decision to provide the purse increase for the next two years was made because of 'once-in-a-lifetime opportunities' happening for the race in 2007 and 2008, said Taylor.

The Feb. 10, 2007 Whitehorse starting line will see the teams leave the city just before the start of the Canada Winter Games, which will be hosted by the city from Feb. 23 until March 10.

The Quest is hoping to use the event, the logo for which includes a musher with his sled dog team, to help net more corporate sponsorship and national media attention for the race.

In 2008, the race will celebrate its 25th anniversary another event the organization hopes will inspire national and international coverage and sponsorship.

The Quest's newly-appointed president, Robin Round, said the race organization will be using the government's contribution over the next two years as a lever to continue to go out and seek more corporate sponsorship.

The race has often fallen into a cycle of not having enough sponsorship during the year and then not being able to increase the purse, said Round.

A smaller purse means fewer teams enter, which leads to less excitement and media attention, and then the race doesn't attract the big national sponsors, she added.

'If there's one thing that mushers have told us time and time again, every time we ask them, What's it going to take to keep them coming back to the Quest?' It's always been consistent in their answer: Raise the purse,'' she said.

'More money to more places will ensure more mushers are recognized for their investment, time, energy and significant personal resources.'

The winner of the race will now receive $40,000. The amount is $10,000 more than the previous $30,000 award for first place.

Second place will receive $30,000, up from $24,000, while the third finisher will take home $22,000 rather than the previous award of $18,000.

The largest percentage increases will be seen by the teams crossing the line in positions 10 to 15.

The prize for 10th place has been increased by 97 per cent to $6,500, from $2,900.

The reward for 11th has been increased to $6,000, 12th is now set at $5,500, 13th will receive $5,000, 14th is set at $4,500 and 15th place will take home $4,000. The prize for 15th represents a 167 per cent improvement on the $1,500 given previously.

The rules have also been changed to see anyone who reaches the finish line receive $1,000.

'We believe that just finishing the Yukon Quest is a significant achievement worthy of recognition, respect and a little cash,' said Round.

The amount is just short of the approximately $1,250 entry fee.

'It's a first step. It has to be followed up by corporate sponsorship of some sort,' said Gerry Willomitzer, a three-time Quest veteran.

The money from the government may become a crutch for the race, said Willomitzer.

'The pressure is really on the Quest organization now to get the corporate sponsorship.'

A more appropriate purse amount would be $250,000, he said. It would allow the money to be more evenly distributed to the top 10 finishers, he said, adding the current money distribution is top heavy.

The team that finishes in 10th position should still break even for how much it costs to run the race, he said.

Willomitzer estimated that it costs approximately $10,000 to prepare and run the Quest's trail. It costs approximately $30,000 to keep a kennel year-round, he said.

The drop after the top three spots is too steep, he added. Fourth place receives $14,500, $7,500 less than third.

The new money will almost certainly attract mushers who think they can finish in the top three, said Willomitzer, but it may not attract a larger field of competitors.

'They need to look at where the break even point is,' he said. In the current distribution, only the top five finishers will make back what it cost to run the Quest, according to Willomitzer's estimates.

Willomitzer said the current purse seems to be more focused on attracting some of the bigger names in mushing rather than getting more people to enter the race.

With the Quest's timing sitting in the middle of the racing season, the organization needs to be more aware of the costs of keeping a team, he said.

If a musher decides to enter the Iditarod in early March, there are approximately seven other races that are still feasible to run prior, said Willomitzer. That takes the combined prize money available over the $1 million mark, he said.

With the time needed to train and rest a team before and after the Quest, there are really only about two or three other events a musher would consider entering before the 1,600-km challenge, said Willomitzer. That means there is only about a combined amount of $250,000 in purse money up for grabs for those mushers.

'The Quest competes with the Iditarod and other races for musher participation,' he said. 'It's not competing with sponsorship money that much, it's competing with the time slot that each musher has available for these races in the winter.'

Willomitzer, who placed third in this year's race, probably won't be running the Quest in 2007, and will instead be focusing his energies on the Iditarod over the coming years.