Royal Victory Thoroughbreds

Will I make a profit as a racehorse owner?

Our goal is bring you an amazing ownership experience that will be different from other entertainment venues as you have the opportunity to be a participant and not just a spectator in this professional sport. Profit is possible but financial gain should not be your primary reason to participate. Think in terms of entertainment versus investment with a chance of returns. Of course our goal is to win and generate earnings and some horses will earn a positive return but some will not. 

What is the actual cost of a Royal Victory Racing Thoroughbred?

The initial capital required will vary based on the determined Fair-Market-Value of the horse at the time of the sale. Units in each horse (10% ownership) may range in cost from from $500 to 10,000.  Monthly expenses for training and vet-care will vary from $200 in Washington to $400-$500 in New York. Invoices are emailed monthly based on actual expenses. There are no mark-ups. 

Who picks the jockeys for each race?

The trainer maintains the best knowledge in terms of which jockey best fits the horse in training based on age, size, demeanor and running style of the horse. Some jockeys will workout the horse in the morning and have a feel for him. Some jockeys are asked to ride on multiple horses in a race and may have to choose which horse they prefer. Once a jockey rides a horse, they gain familiarity with that horse and will often return to ride that same horse again.

Can we meet the trainer, visit the barn and inspect the horses ourselves?

Absolutely. You are welcome to visit the barn and your horse, pet them and even feed them carrots! Please let us know when you want to visit and we will ensure you have access and a chance to meet key personnel behind the scenes. Visiting the horses and watching them train in the morning hours is one of your insider perks of horse ownership and a benefit we are happy to share with you.

How is Royal Victory Thoroughbreds compensated?

Royal Victory Thoroughbreds are compensated by investing in the horse as a yearling / stud fee and then offering to the partnership at Fair Market Value based on pedigree, conformation, family history, soundness and evaluations from bloodstock agents and trainers. In addition, Royal Victory Thoroughbreds retains multiple shares in every racehorse to underscore and reinforce our commitment and ongoing involvement. Some partnerships will charge additional management fees, mark-ups or a sales commission when a horse is sold but there are no other fees, charges or mark-ups. Our primary incentive is to give you an amazing experience and of course, Win!

Does Royal Victory Thoroughbreds maintain an equity interest in any of your partnerships?

Yes, we maintain at least two shares in every partnership to underscore our commitment and ongoing involvement.

How are expenses for training, veterinary, etc.. handled?

Your initial capital investment will cover the initial purchase price, then monthly invoices will be emailed based on the actual monthly costs for each partnership horse. Partners will receive a single invoice that includes all expenses, including training and normal veterinary care, jockey and trainer commissions and any race-day costs. All costs will be shown as single line items on the invoice to show the breakdown of costs each month.

How are purse earnings distributed?

Distributions may be requested at any time there is a purse distribution and all invoices are paid. Your account will be updated within 48 hours of any purse transaction, and you will receive a credit email from us. For every victory, each partner will receive a an authentic photograph of your winning horse in the Winners’ Circle.  

How will tax reporting be handled?

Each partner will receive a K-1 statement for the profit or loss of the investment for the tax year, for both national and state taxes. The Internal Revenue Service classifies investors as either “active” or “passive” participants. We strongly recommend you seek professional advise from an equine accountant regarding thoroughbred ownership and tax planning and strategies.

Do I need a racing license to be a partner?

Yes. All partners are required by each State's Racing Commission to have a valid and current license to participate. The process for obtaining a license is simple and we will walk you through it if you are not presently licensed and need some assistance. The cost of an owner’s license is roughly $300 annually for WA State and $150 for three years in New York and California and $100/year in Maryland. With your license, you have free admission and parking throughout the racing season.

Why is Royal Victory Thoroughbreds operating as a LLC?

The LLC limits liability for the members in the event of a lawsuit solely to the assets of the partnership, thus removing any personal liability of its members.

 

What type of horses Does Royal Victory Thoroughbreds purchase?

We purchase horses based on our expectation they can be competitive at NYTA, Mid Atlantic, California or Washington racetracks. We attend yearling sales, mixed sales, research privately and claim horses that meet this criteria.

Does Royal Victory Thoroughbreds favor colts or fillies?

We don’t have a bias. Both divisions offer competitive racing and competitive purses over the course of the year.

Where do you race and train your horses?

Our main venues for NYRA tracks are Belmont, Saratoga and Aqueduct; Mid Atlantic is Laurel Park; California is Golden Gate Fields and Washington is Emerald Downs. We can ship to other venues from these training facilities.  

What happens to the horses if they are not training?

There may be times when a horse needs turnout time, or a little break / rest and relaxation from the rigors of racing. Depending on where the horse is located, it may be turned out at a nearby farm to recharge and refresh. Like any athlete, a horse may need time off to enhance peak performance. Also, like any athlete, such as a professional football or baseball player, a racehorse can get sick or injured and require time off and rehabilitation to recover depending on the severity of the illness or injury. The cost during layups is significantly lower than ongoing costs for training on the track. 

What happens if there is a setback?

In the event there is a setback, Royal Victory Thoroughbreds will provide you with timely and detailed information from both the veterinary and the trainer regarding the circumstances of the setback. We will never race or train on a horse if we believe there is a risk of harm or injury to the horse. As such, they are checked every day while in training to ensure they are training and moving optimally.

Are your horses insured?

Royal Victory Thoroughbreds does not insure horses; however, if you desire to insure your investment for mortality, we can help you get this coverage.

What is a claiming race and can one of your horses be claimed?

A claiming race is one in which all horses entered are for sale prior to the race at a pre-determined amount. Our goal is to compete at the level in which our horses can be competitive and realistically win, which will include some claiming races.

 

Who is responsible for making decisions regarding the horse?

The day to day management decisions regarding the horse are made by the trainers, Tim McCanna, Ferris Allen, or James Toner, typically in consultation with Victor Bahna. As a general partner, you will participate on major decisions such as private sale, if offered, or relocating the horse to a different venue with full transparency on the rationale and plusses and minuses. 

How is the partnership concluded?

When the horse(s) in the partnership are sold or retired from racing, the partnership for that horse will be concluded. A horse may be sold privately, claimed or retired. A private sale will only happen if the majority of shares agree to the sale. If a horse is retired, there will be no more ongoing maintenance costs. Disbursements from private sales or claiming races will be provided to all partners within 14 days of receipt of funds.

How will I know if my horse is racing?

Generally, entries are determined between 2 and 7 days prior to race day. Once a horse is entered, it will be posted on the website and we will also send you a personal email and text message to ensure you are informed of the date, race, number and jockey named. 

How will you share ongoing updates?

We enjoy talking about our horses and will provide transparent and frequent communications regarding your horse. This means we will manage communications of both good and bad news equally. We believe in the integrity of our partnership and the importance of keeping you informed regularly. As such, we will provide regular updates via the member site as well as updates on our social media sites as well.