Acquiring a Thoroughbred
Thoroughbred Ownership – Claiming, Private, & Racing Partnerships
Thoroughbred horse racing, much like owning most sports franchises, is exciting and thrilling. However, horse racing is also an expensive sport with purchase prices for the animals ranging from the thousands into the millions. This cost does not include the expense of feeding, training and stabling the horse. Before investing in a racehorse, it is important to understand the differences in types of ownership.
Claiming a Horse
More than half of all horse races in the United States are known as claiming races. In a claiming race, every horse has a price tag. An interested owner places a “claim” on the horse before the race and when the race is over, they own the horse, even if the horse is injured or performs poorly. In addition, the previous owner gets to keep any winnings from the horse earned from the claiming race. This method of purchasing a horse is popular because the horses are claimed at lower prices; however, there are drawbacks. A buyer may not have the horse examined by a veterinarian prior to the race, and, in most states, the person who places the claim must already have an owner’s license. In addition, if the horse is claimed by one individual, that person is solely responsible for transport, feeding, training and locating a racing stable for the horse.
When thoroughbreds are privately owned, there is usually just one owner who is responsible for all administrative decision-making and costs involved with the animal. In addition, the owner must work closely with the trainer regarding training methods, which can be time consuming. It also requires a significant amount of knowledge regarding horse racing.
Racing Partnerships consist of two or more owners who invest a percentage of the initial cost to become a member of the partnership. Racing rules require that at least two of the owners must become or already be registered owners.
Because racing partnerships enable an investor to own as much of a stake in a thoroughbred racehorse as he or she can comfortably afford, partnerships have become more popular over the past few years. The annual costs of maintaining a racing stable, training fees and administrative duties do not fall to just one person; these tasks and costs are equally divided among a group, making thoroughbred racehorse ownership feasible for more people.
There are three different types of partnerships.
- Trainer-Managed – Trainers set up and run the organization, and often the trainer is one of the co-owners of the horse. The trainer makes the majority of the decisions regarding the horse and handles most all administration duties regarding the racing partnership. In this type of partnership owners are not involved in day-to-day operations.
- Social Group – This type of partnership often is a group of friends, co-workers or family members who invest in the ownership of a racehorse. Often one of the investors agrees to take on the responsibility of managing the administration of the partnership and deal with the employed trainer.
- Professional – Professionally run racing partnership operations are syndicates that sell fractional ownership in the horse. Partners get the benefits of owning a racehorse without the responsibilities of day-to-day operations, which is why partnerships are growing in popularity throughout the United States. In addition, a professionally run partnership makes ownership of a racehorse affordable for fans who want to do more than place wagers—they can be involved in many aspects of the racing day. Partners have the privilege of watching their horse train and experience the excitement in the backstretch. In fact, the entire family can be part of the experience of owning a racehorse through professionally run partnerships. Some partnerships offer investment packages that include all fees while others bill horse-related expenses on a quarterly basis. Another benefit to owning a racehorse through a professionally run partnership may be perks such as special thoroughbred ownership seating, access privileges, visits with the trainer, and greeting the jockey on race day.
Blinkers On Racing Stable, a leader in thoroughbred horse racing partnerships, brings together the finest in thoroughbred horse racing expertise with the best in business know-how, and above all, a team of people you can trust, to manage your investment. We are committed to helping you experience the joys of thoroughbred horse ownership. For more information on thoroughbred partnerships visit our website or request an information package about our partnership. Keep up with horse racing in California by reading our Blog, finding us on Facebook, following us on Twitter, checking us out on LinkedIn, or visiting our YouTube Channel!