Questions And Answers About Horseracing Partnerships & Syndicates
Companies that put together syndicates and horseracing partnerships do so in order to split the costs related to the horse by allowing several people to own a share of the horse. That share must be purchased by anyone wanting to belong to a horse racing partnership. The price paid will be a specific percentage of the horse?s cost and it may include a mark up if desired by the horseracing partnership company.
If you become a racehorse partner, the costs you pay will be determined by the share that you own. This means that the expenses each month are divided according to the size of each partner?s share of the partnership. The shares that the partners own are each a percentage of the total ownership of the horse. Not all of the shares are the same size. Someone with a larger share will pay more of the expenses than someone with a smaller share. But, someone with a larger share will also earn a larger share of the profits.
Each horseracing partnership or syndicate operates slightly differently based on policies set forth by their respective company or managing partner. Because there are variables across the board, it would be in your best interest to obtain data from several likely partnerships and compare what they have to offer before making a final decision. By doing some research and making comparisons, you will have a better feel for where you would like to make your investment.
Some other things you need to know when comparing syndicates include:
* What are the highest and lowest ownership percentages possible?
* Can owners contact the managing partner? Who is it? Is there are fee for managing the partnership? How much is the fee?
* Where are the horses purchased from? Are they bred at the racing stable or are they purchased from private sales and horse auctions?
* Do you have access to see the horses pedigree information?
* Does the syndicate you’re interested in race nationally or only regionally?
* Can you get a list of racetracks they are planning to race?
* Will the partnership give you any assistance in getting your license?
* What kind of documentation will the partnership give you to help with tax preparation at the end of the year?
* Does the racehorse partnership add a markup amount to the cost of the horse when determining the cost of each share?
* How long is the co-ownership contract for?
* Is insurance included as part of the monthly expenses?
* If you want to get out of the partnership, are you free to do so?
As you can see, there are many things to consider when choosing a horse racing partnership. Approach each syndicate with a list of questions and a checklist so you can make an objective decision. By doing some research and making comparisons, you will be in a better position to choose the best horse racing partnership in which to make your investment.