Thoroughbred Horseracing Partnerships : A Complete Introduction

Have you considered a thoroughbred racehorse investment, but you had no idea where to begin or whether it would be affordable? If you have ever been curious about this, you?re in good company. Many potential investors think about buying an interest in a well-known thoroughbred racehorse. In reality, the best-known thoroughbreds don?t have investing shares available, but there are others that have horseracing partnership opportunities available.
When you invest in thoroughbred horseracing partnerships, you are buying a share of the partnership. Your share is measured as a percentage and it may be as small as 1% or as large as 45% of that partnership. The size of your share determines your share of the costs of the horse as well as your share of the earnings.
Instead of assuming all the risk of owning a thoroughbred, you assume a smaller amount of risk by joining other investors in a horseracing partnership. Your risk is the size of your percentage in the partnership. If you are new to the industry and our unsure about the investment, you might consider purchasing a very small portion such as 1%. If you are a confident investor that is familiar with the horse racing industry, you may be prepared to purchase as much as 45%.
Across the United States, there are a number of racing stables that engage in syndicates and horseracing partnerships that offer co-ownership. Each of these partnerships or syndicates is a little different in how they choose to manage their group. Before you invest in a partnership, you must be familiar with the rules of several horseracing partnerships and syndicates in order to find the one that matches your investment goals.
Before investing, consider:
* Does the partnership offer the size share you are interested in? Some groups do not offer shares smaller than 5%.
* Do they offer partnership shares based on a percentage of the purchase price of the horse or, do they mark-up the price and then calculate share costs?
* Does the partnership charge any fees for management?
* Will you be responsible for monthly costs that are for more than the upkeep of the horse? For example, there may be advertising costs due. While advertising can be helpful, it can also be expensive.
* Will you be able to meet with the managing partner before you sign the contract as well as after you sign?
There are a lot of investment opportunities associated with thoroughbred horseracing, but there is also plenty of risk. It is possible to lose your investment as easily as profiting from it. But by joining other owners in a horseracing partnership or a syndicate, you share the risk with others as well as the costs.

By: C. Anne Baker

C. Anne Baker has been continually involved in thoroughbred horse racing and breeding and also racing charities, both in North America and Europe for thirty years. Her outstanding guide to Horse Racing Partnerships is available free, for a limited time only, from PartnersInThoroughbreds.com

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