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 cost is based on the Fair-Market-Value (FMV) of the horse. Shares are sold for 10% ownership of each horse. Monthly expenses for training and vet-care will vary based on location. Typically, the higher purses (CA, MD, VA) will incur higher monthly expenses. Invoices are emailed monthly and based on actual expenses. Royal Victory Thoroughbreds does take a management fee or mark-up expenses. All invoices are billed at cost.
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'll coordinate your visit to meet 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. 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!
How are expenses for training, veterinary, etc. handled?
Your initial payment will cover the purchase price and then you'll receive an itemized monthly invoice for at-cost monthly expenses. Similarly, partners are rewarded with credits for purse money earned within 24-hours of the race results.
How is tax reporting 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 garner 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, Southern California and Emerald Downs in Washington. Occasionally, we may also send a horse to other venues, such as Penn National, Fingerlakes or NYRA tracks (Aqueduct, Belmont, Saratoga).
What happens to the horses when they are not training?
There are times when a horse needs turnout time, or just a break from the rigors of racing. Like any athlete, a horse will use time off to enhance future performance. Racehorses can and will 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 an injury?
In the event there is an issue, 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 do not insure our 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 3 and 7 days prior to race day. Once a horse is entered, it will be posted on our website and we will also contact you to ensure you are aware of the venue, race number and post time.