Thoroughbred Horseracing Partnerships : A Complete Introduction
Did you ever want to start investing in thoroughbred racehorses, but you weren’t sure how to get started? Did you wonder if you could afford to invest? If you have ever wondered about this type of investment, you’re not the only one. There are a lot of people who want to own a stake in a thoroughbred racehorse that they are familiar with. It may be that your favorite thoroughbred isn?t available for investment, but there are plenty of others out there who to have shares available in their horseracing partnerships.
The investment opportunities offered by thoroughbred horseracing partnerships are shares in the partnership that can be as small as 1% of the partnership up to as much as 45% of the partnership. However large your ownership is in the horse will determine your share percentage. This also is a representation of your costs and earnings.
By joining a horseracing partnership, you reduce your amount of inherent risk from 100% to an amount equal to your percentage of ownership in the thoroughbred. For example, if you wanted to buy a small interest to get your feet wet and get a feel for the industry, you could purchase a share as small as 1%. If on the other hand, you have been around the industry for a while and feel comfortable with your financial position, you could purchase a heftier share of up to 45%.
In the United States, there are many stables with available horseracing partnerships and syndicates that are open to co-ownership investments. The rules and management style of each of these partnerships will differ. Before investing in a partnership or syndicate, become familiar with several of them in order to choose the best one for your specific goals in investing.
Before investing, consider:
* Does the group have your intended share percentage available? For instance, some groups may not have shares available of less than 5%.
* Do they offer partnership shares based on a percentage of the purchase price of the horse or, do they mark-up the price and then calculate share costs?
* Are there any fees for managing the partnership?
* Will you be responsible for monthly costs that are for more than the upkeep of the horse? For example, there may be advertising costs due. While advertising can be helpful, it can also be expensive.
* Will you be able to meet with the managing partner before you sign the contract as well as after you sign?
The sport of thoroughbred horseracing offers many investment opportunities but you must remember the stakes are high. You could just as easily lose as you could win. However, by joining a horse racing partnership or syndicate you can defray some of the costs and risks associated with being an owner.
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