Important Facts About Syndicates and Horseracing Partnerships

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.
Some other things you need to know when comparing syndicates include:
* What are the minimum share and maximum share amounts that are currently 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?
* Where does the partnership get the horses? Are they purchased at auction, from private sales or are they bred at the stables?
* Is the pedigree information available to you?
* Does the syndicate engage in regional races or national ones?
* 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 the shares of the racehorse partnership strictly made up of the cost of the horse or does the partnership markup that price?
* How long is the co-ownership contract for?
* Is insurance calculated as a part of the monthly fees?
* 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.

By: C. Anne Baker

C. Anne Baker's life has included thoroughbred horseracing and bloodstock for many years. She also contributes to horseracing charities. For a limited period, visitors to her web site PartnersInThoroughbreds.com can receive her excellent guide Becoming included A horseracing Partnership

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