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After years of dreaming about owning a racehorse, you decide to plunge headlong into the industry by becoming part of a horseracing partnership. The problem is you do not know a good opportunity from a possibly not so good one. Before you throw caution to the wind, take a moment to educate yourself about racing partnerships and explore all available options to ensure you choose the partnership that best suits your needs. Here is what you should be considering when thinking about investing in a horseracing partnership: * Can you really afford to own a racehorse? Do you know how much it costs to maintain ownership? Are you financially in a position to both purchase the initial interest in a horseracing partnership as well as keep up with monthly or quarterly billing for related expenses, which by the way are typically paid in advance. * Do have a preference when it comes to the business structure of the partnership? How will the structure of the business affect your taxes and liability? What type of documentation will you have for your taxes? * How is the record of the team that manages the horseracing partnership? Are the staff accommodating and helpful when you need them? Can you ask questions of the managing partner? * What type of accounting is there for the expenses and income that the management team overseas? Will the partners get updates? Can partners view the records? When are the winnings paid to the partners? * How are the horses acquired? Does the purchase price of each horse reflect the price of each share? * Do you know who you are going into business with? Are references from other partners available for your review? * How will the decisions be made for the racing partnership? Will the managing partner take them all? Will the partners vote on the issues? Will the partners have meetings in order to discuss expenses and other issues and to get reports of progress? * How often will you be in contact with your horse? * If you join a specific horse racing partnership, what benefits can they give you? * Can you get out of the partnership? What are the procedures for transferring your shares? What happens when it is time to retire the horse? There are many factors to consider prior to joining a horseracing partnership. If you feel overwhelmed or unsure, it is best to consult the services of an advisor, attorney, accountant, or a combination thereof for assistance. You may also consider seeking advice from experienced owners, most of whom will talk openly to you regarding the industry if they feel you are serious about becoming an owner.
By:
C. Anne Baker's life has involved thoroughbred horse racing and breeding for countless years. She also contributes to horse racing charities. For a short time, visitors to her website PartnersInThoroughbreds.com can download her excellent guide Becoming Involved A Horse Racing Partnership
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