Will I make a profit as a racehorse owner?
Our goal is bring you an amazing ownership experience, different than other entertainment venues since you're a participant and not just a spectator. Profits are possible but financial gain should not be your primary reason to participate. Our goal is to win races and generate earnings and some horses will even bring a positive return but most will incur some losses given the economics of the sport.
What is the cost of a Royal Victory Racing Thoroughbred?
The initial capital required is based on the Fair-Market-Value of the horse at the time of the sale. Units in each horse (10% ownership) will range in cost from from $500 to 10,000. Monthly expenses for training and vet-care will vary from $200 in to $500 depending on the venue, training schedule and veterinary care. Invoices are emailed monthly in arrears based on actual expenses. There are no mark-ups.
Who picks the jockeys for each race?
Each 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 exercise the horse in the morning and have a good feel for him.
Can we meet the trainer, visit the barn and inspect the horses ourselves?
Absolutely! Our trainers will welcome to visit the barn and your horse, meet them and even feed 'em carrots! Please let us know when you want to visit and we will ensure you have access and a chance to key personnel behind the scenes. Visiting the horses and watching them train in the morning hours is an insider perk of horse ownership and a benefit we're happy to share.
How is Royal Victory Thoroughbreds compensated?
Royal Victory Thoroughbreds retains multiple shares in every racehorse to underscore and reinforce our commitment and ongoing involvement. Like every partner, Royal Victory Thoroughbreds wins when our Partners win and lose when our partners lose. Some syndicates/partnerships may charge management fees, mark-ups or a sales commission when a horse is sold but RVT has no such fees, charges or mark-ups. Our primary incentive is to give you an amazing experience and of course, Win!
How are expenses for training, veterinary, etc.. handled?
Your initial capital investment will cover the initial purchase price, then you'll receive a monthly invoice via email (via Quick Books Invoicing) for at-cost monthly expenses based on the number of horses and shares per horse. Similarly Partners are rewarded with credits for purse money earned and also emailed. All expenses are written out as single line items on the invoice to show the breakdown of costs each month.
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 at each venue in which we are racing. 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.
Where do you race and train your horses?
Our main venues include Laurel/Pimlico in Maryland, Colonial Downs in Virginia, Northern California (Pleasanton, Santa Rosa and Sacramento) and Emerald Downs in Washington. We may also race occasionally at other venues, such as Penn National, Fingerlakes, Del Mar or NYRA tracks (Aqueduct, Belmont, Saratoga).
What happens to the horses if they are not training?
There will be times when a horse needs turnout time, or just a break from the rigors of racing. Depending on where the horse is located, he may be turned-out at a nearby farm. Like any athlete, a horse will use time off to enhance peak performance. Racehorses can and will get get sick or injured from time to time and require extended time off depending on the severity of the illness or injury. The expenses during such layups are generally lower than day-to-day costs for training on the track (outside of expenses for surgery).
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.
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 our website and we will also send you a personal email and/or text message to ensure you are informed of the date, race, number and jockey named.