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 syndicate or horseracing partnership has its own rules and policies that the company sets forth for that partnership. There are so many variables involved in these arrangements that anyone interested in joining a race horse partnership should look at several of them and to find out about the terms of each for comparison. By researching these arrangements before making a decision, you will be able to choose the one with the most favorable terms.
There are a few other things to keep in mind while conducting your comparison:
* What is the minimum and maximum share percentage available?
* 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?
* Can you see the pedigree information for the horse?
* Does the syndicate engage in regional races or national ones?
* Which racetracks are they planning to use?
* Will the syndicate or partnership help you to get your license?
* What documentation will you receive at year-end for tax purposes?
* 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 contract for co-ownership?
* Is insurance included as part of the monthly expenses?
* How do you leave the partnership should you choose to do so?
As this list shows, there are many considerations when picking the best horse racing partnership. As you decide between the available syndicates, ask plenty of questions and use a checklist. This will allow you to easily compare the syndicates to each other and to make the best possible investment decision.
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