Horse Racing Partnerships
Horse racing partnerships are a fairly new phenomenon in the Thoroughbred world. Once little-used and even frowned upon, syndicates are now thriving at all levels of racing. When Funny Cide stole the hearts of America in 2003 (see story here), the fairy tale of a little horse racing partnership that hit the big time brought syndicates into the limelight. Eight years later, partnerships are still on the rise as people attempt to recreate the story of the $5,000 buy-in that led to some of the biggest purse wins on the American racing stage.
Parents are often caught saying, “I wish these kids came with an owner’s manual!” That same sentiment holds on the racing scene… but the “children” are 16-hand musclebound animal athletes, and the situation is made ever more complex by the people and places that are intimately connected to the lives of each active Thoroughbred. If you’ve ever wanted the “owner’s manual” for syndicate racing, look no further!
Step 1: Determine Your Goals as an Investor
This includes your monetary input and goals, as well as the more visceral and less easily defined aspects of racing. If you just want to see a stable monetary gain, then horse racing is not for you. You are buying into a living animal with a personality, temperament, and limitations. Your horse will only physically be able to undertake a certain number of starts per year, and every time out of the gate will run the risk of a debilitating injury. This is not an arena in which to be fronting money you can’t afford to lose. But if the pulse-pounding, high-risk chance at great reward draws you, and you’re putting up income that truly is disposable, read on.
Step 2: Determine Your Investment Strategy
Start with the amount of money you have to invest, and determine how you feel that money is best spent. Keep in mind that after the initial buy-in, you will be responsible for covering a share of your horse’s (or horses’) expenses each quarter as long as you’re a member of the partnership. Many investors with a finite amount of money to spend choose to diversify, buying smaller shares in several animals rather than a large portion of interest in a single horse. As with diversification of stocks, this strategy allows you to create a sophisticated portfolio built on the prospects of living, breathing, four-legged Thoroughbred shares.
Step 3: Find a Satisfactory Stable (or Stables)
Some experienced individuals opt for private partnerships, managed by private owners who take on all the organizational tasks of registration, scheduling, care, and training. Most who opt to buy into horse racing partnerships, however, do so through the avenue of an established racing stable that is designed to organize and manage partnerships.
When choosing a stable, look for established organization, age, and success rates. Choose a reputable industry leader with a yearly routine, a long track record and personnel that understand all aspects of the horse racing business. Look for a company that is happy to show you their credentials and can prove a long history of involvement with an influence on the upper levels of racing. And above all, make sure that you choose a reputable stable that puts priority on your horse’s health and quality of life.
You can choose to buy into multiple animals managed by multiple stables. This can give you geographic flexibility and a share in multiple “markets.” However, opting to buy into shares of multiple horses that run with a single stable can give you the edge of building trust and lasting relationships with a single business entity. Working with a single stable also dramatically simplifies your paperwork and quarterly bookkeeping strategies.
Step 4: Jump In
After you’ve bought into your first animal or animals, you’ll want to check in regularly with your horse’s “team.” A good stable will send you regular updates through mail or email, as well as quarterly statements requesting your portion of expenses and quarterly reports detailing where your money has gone. You’ll want to remain apprised of training decisions, veterinary checkups, and race days. Your stable should disseminate any winnings in a timely and transparent manner, with a percentage breakdown showing who receives what portion of the purse and a promptly issued check for your portion.
Step 5: Keep Records
You’ll want to keep all correspondence, statements, and paperwork from your stable, as well as copies of checks you mail and checks you receive. Managing your Thoroughbred or Thoroughbreds should become just another aspect of your regular financial planning (and it will probably become the most fun part!). In the event that you should choose to leave the partnership, your records will allow you to determine what you’ve put into the animal and what you believe your share is worth. You’ll have to follow your stable’s guidelines for selling your share, but having your ducks in a row will allow you to protect yourself and your financial assets.
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!
Ready to get started? Blinkers On Racing Stable, the gold standard for horse racing partnerships in California’s racing world, offers high-level Thoroughbred ownership at affordable prices. Visit BlinkersOn.com for more information!