Breeding Question

[tomm5647]

Hey Guys I have a question that's been bugging me. I know that there are many people here that are much closer to racing than me so if this question seems stupid, I appologize. When watching the races on TV there are numerous ads for breeding farms. When they highlight a stallion the screen says something like $10,000 live foal. Does that mean that if I breed my mare to their stallion I don't pay until the mare delivers? It might be obvious to some but I need the correct answer. Thank you for the help.
Tom