Feb 2017
Joining a Partnership and Becoming a Racehorse Owner!
Updates:
WARNING! Owing racehorses can be addictive but only if you like excitement, thrills, have zest for life and enjoy good times with fun people! Before you start, it’s important to prepare yourself for this exciting new world that you are about to enter. When you own a racehorse, you become part of an exclusive club that includes A-list celebrities, Royal subjects, Sports legends, Business tycoons as well as regular and everyday people. The truth is you don’t need to be a multi-millionaire or royal heir to fully participate in the thrills of owning a racehorse! Today, it’s possible for anybody with a few discretionary dollars to become an owner through partnerships and racing syndications.
Racing partnerships and group ownership has grown into a common practice across all racetracks in North America since the first racing syndicate was formed more than 40 years ago. These syndicates or partnerships have enabled thousands of individuals that otherwise could not participate to delight in the thrill and benefits of owning a racehorse. A racing partnership is a legal business entity in which each member shares in the ownership of a thoroughbred racehorse. These entities are typically governed by a legal Operating Agreement, often registered as an LLC, co-ownership or sub-chapter corporation. Joining a partnership is a fantastic way to become a new owner and represents a fertile learning ground for racing enthusiasts. It’s also an easy and cost-effective way to diversify and extend your participation across multiple horses.
"The truth is you don’t need to be a multi-millionaire or royal heir to fully participate in the thrills of owning a racehorse!"
Each partnership differs in regards to the number of partners, buy-in costs, ongoing operating costs, billing terms, payment distributions, racing venues, class of horse, age at purchase, management fees, markups, communications and relationship with the managing owner, racing stable and barn. Comparing these differences can be dizzying; thus, it’s critical to understand your personal objectives and set your own budget. For example, the cost of entry can range from $500 to more than $100,000 based on the type of partnership. The ownership percentage per share can range from less than 1% to 50%. A reputable partnership will share realistic expectations but you need also need to ensure that you fully understand all the terms and conditions of the Operating Agreement. Don't hesitate to ask questions. Speak directly with the Managing Owner to determine if this individual is someone you are comfortable to be around and someone you can trust.
You will immediately recognize your elevated status when you discuss race-day tactics with your trainer, meet your horse and jockey up close, watch these athletes train and gain insider knowledge about racing strategy and key decisions about your horse. Before your horse even enters the starting gate, you will gain exclusive access in the restricted paddock area and then get to watch him race from your birds-eye owners box and VIP service. Just prior to post-time, you will feel anxious, nervous and excited and when the gates fly open, you will scream with unprecedented enthusiasm that will crescendo into uncontrolled enjoyment as he turns for home and thunders down the stretch! When he wins, you will float on air from your box seat and eagerly greet him in the Winner’s Circle and spontaneously expose your biggest and most unrestrained smile. This is nothing short of pure and unbridled happiness! It’s an experience you will remember forever and you will catch yourself smiling every time you relive the glory of that day!
At Royal Victory Thoroughbreds, our goal is to bring you an Awesome Ownership Experience. Whenever you simply attend the races locally or watch the Kentucky Derby on television, you are one of millions of spectators watching others compete. When you attend any sport event, you are a spectator. This includes purchasing a ticket and paying for parking and concessions in return for the opportunity to be part of the crowd that root and cheer for your team. In return for your loyalty, when your team is successful, you will pay even more as your team competes throughout the playoffs. Conversely, when you own a thoroughbred, the spectator model flips dramatically as you shift from being one of a million fans to among the few participants. Unlike the spectator model, the more successful the horse, the more you will be paid for your loyalty! In this world, you become entrenched within this exciting profession at an elevated and more intimate level. Welcome to the Sport of Kings!
"When own a thoroughbred, the spectator model shifts dramatically as you pivot from being one of millions to among the few participating"
Race day is very exciting but ownership also extends beyond the gates of the racetrack. As an owner, you will learn about the business and dynamic nature of horseracing and appreciate the lifecycle of a racehorse. You will have unique opportunities to visit breeding farms and observe a newborn foal and her broodmare, and meet retired thoroughbreds enjoying their life after racing. When you attend a yearling auction or 2-year old in training sale will, you will experience a different type of adrenaline. These sales are the best classroom for lessons about both pedigree and conformation and will help you learn more about the subtleties in a young horse that make the difference between a thousand dollar and million dollar bid!
Owning a thoroughbred racehorse will open up an entirely new world of excitement and bring you a special and rewarding experience that is fun to share with your family, spouse, children, siblings, parents and friends! The more you become involved, the bigger your reward. Of course, please heed the warning at the top of this article as you just may become hooked like so many others like us that simply love horses!