Horseracing partnerships and syndicates are run by companies and sometimes by trainers and are designed to allow multiple people to own a racehorse. How does that work? To join a horse racing partnership, you would purchase a share, which is a percentage of the total cost of the horse plus any possible mark-up on the part of 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.
A few other things to remember during your comparison:
* What are the highest and lowest ownership percentages possible?
* Who is the managing partner and will there be a management fee charged? If there is a fee, how much is it? Is the managing partner available to the other owners?
* From where do the horses come? Does the racing stable breed them or purchase them from auctions or private sales?
* Do you have access to see the horses pedigree information?
* Does this particular syndicate race regionally or nationally?
* Which racetracks are they planning to use?
* Does the partnership / syndicate assist you in obtaining a license?
* What kind of documentation will the partnership give you to help with tax preparation at the end of the year?
* Are racehorse partnership shares based on a percentage of the actual purchase price of the horse or do they add a mark-up?
* How long is the co-ownership contract for?
* Is insurance included as part of the monthly expenses?
* If you should decide to back out of the partnership, how is it done?
As is apparent, there are a number of considerations to keep in mind when deciding on a horse racing partnership. When approaching each of the syndicates that you are interested in, tale a checklist and question list with you. Then, compare each syndicate?s answers with the others. This will give you the information you need to make the best decision about your investment. - 14915
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.
A few other things to remember during your comparison:
* What are the highest and lowest ownership percentages possible?
* Who is the managing partner and will there be a management fee charged? If there is a fee, how much is it? Is the managing partner available to the other owners?
* From where do the horses come? Does the racing stable breed them or purchase them from auctions or private sales?
* Do you have access to see the horses pedigree information?
* Does this particular syndicate race regionally or nationally?
* Which racetracks are they planning to use?
* Does the partnership / syndicate assist you in obtaining a license?
* What kind of documentation will the partnership give you to help with tax preparation at the end of the year?
* Are racehorse partnership shares based on a percentage of the actual purchase price of the horse or do they add a mark-up?
* How long is the co-ownership contract for?
* Is insurance included as part of the monthly expenses?
* If you should decide to back out of the partnership, how is it done?
As is apparent, there are a number of considerations to keep in mind when deciding on a horse racing partnership. When approaching each of the syndicates that you are interested in, tale a checklist and question list with you. Then, compare each syndicate?s answers with the others. This will give you the information you need to make the best decision about your investment. - 14915
About the Author:
C. Anne Baker's life has included thoroughbred horse racing and bloodstock for many years. She also contributes to horse racing charities. For a short time, visitors to her website PartnersInThoroughbreds.com can receive her notable guide Becoming included A Horse Racing Partnership
No comments:
Post a Comment