The money spent by Roy and Gretchen Jackson will go to the Permanently Disabled Jockeys' Fund.
The saddle was donated by jockey Edgar Prado, who rode Barbaro to the win. The saddle had also been in service during many other important race wins.
The money raised through the sale of the saddle will help support 58 disabled jockeys who rely on the fund.
The saddle went under the hammer to the national manager of the Jockeys' Guild, Dwight Manley. There was some confusion over the top bid, and following post-auction negotiations, he sold it to the Jacksons for the same money, throwing in an extra $US80,000 for the fund.
It is understood that Manley asked that the saddle one day be placed in a museum.