Thoroughbred Horseracing Partnerships : A Complete Introduction
Did you ever want to start investing in thoroughbred racehorses, but you weren’t sure how to get started? Did you wonder if you could afford to invest? If you have ever wondered about this type of investment, you’re not the only one. There are a lot of people who want to own a stake in a thoroughbred racehorse that they are familiar with. It may be that your favorite thoroughbred isn?t available for investment, but there are plenty of others out there who to have shares available in their horseracing partnerships.
The investment opportunities offered by thoroughbred horseracing partnerships are shares in the partnership that can be as small as 1% of the partnership up to as much as 45% of the partnership. However large your ownership is in the horse will determine your share percentage. This also is a representation of your costs and earnings.
By joining a horseracing partnership, you reduce your amount of inherent risk from 100% to an amount equal to your percentage of ownership in the thoroughbred. For example, if you wanted to buy a small interest to get your feet wet and get a feel for the industry, you could purchase a share as small as 1%. If on the other hand, you have been around the industry for a while and feel comfortable with your financial position, you could purchase a heftier share of up to 45%.
Across the United States, there are a number of racing stables that engage in syndicates and horseracing partnerships that offer co-ownership. Each of these partnerships or syndicates is a little different in how they choose to manage their group. Before you invest in a partnership, you must be familiar with the rules of several horseracing partnerships and syndicates in order to find the one that matches your investment goals.
A few things to consider about syndicates or partnerships:
* Do they offer the share percentage you are interested in purchasing? For example, some syndicates do not offer shares below 5%.
* Is the share price calculated as a percentage of the horse?s purchase price, or does the price include a markup of the purchase price?
* Does the partnership charge any fees for management?
* What monthly charges will you be expected to pay beyond standard care, training and the regular upkeep of the horse. There may, for example, be advertising costs. Although it is important advertise, this can be extremely expensive.
* Is the managing partner available and willing to sit down with you both prior to and after contract signing?
The sport of thoroughbred horseracing offers many investment opportunities but you must remember the stakes are high. You could just as easily lose as you could win. However, by joining a horse racing partnership or syndicate you can defray some of the costs and risks associated with being an owner.