Sally eventually loses the farm, and Mr. Dillon makes good on his original bet with Thad Jr. and offers her any two-year-old on his farm. She picks "Blue Grass" instead of the favorite, "Postman", and Jack trains him for the Derby. She eventually learns of Jack's real identity and fires him as a trainer. During the race, Blue Grass runs neck and neck with the Dillon's horse Postman, but Blue Grass wins thanks to Jack's advice. Sally embraces Jack, but Peter collapses before the decoration ceremony and dies. At his funeral, Dillon eulogizes him and of the American life of the past, as "The Grand Old Man of the American Turf".