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 do become a partner in the ownership of a racehorse, the amount you pay is equal to the size of your share in the partnership. Because of this, the expenses related to the horse will be divided each month among all of the racehorse partners according to how large of a share they own. The size of the share that each partner owns is their percentage of the costs and expenses. Though a larger share will cost more, it will also deliver more when there are profits to distribute.
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 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?
* Where does the partnership get the horses? Are they purchased at auction, from private sales or are they bred at the stables?
* Can you see the pedigree information for the horse?
* Does the syndicate engage in regional races or national ones?
* Which tracks do they plan to race on?
* Will the partnership give you any assistance in getting your license?
* What documentation will you receive at year-end for tax purposes?
* Are the shares of the racehorse partnership strictly made up of the cost of the horse or does the partnership markup that price?
* What is the length of the co-ownership contract?
* 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.
If you do become a partner in the ownership of a racehorse, the amount you pay is equal to the size of your share in the partnership. Because of this, the expenses related to the horse will be divided each month among all of the racehorse partners according to how large of a share they own. The size of the share that each partner owns is their percentage of the costs and expenses. Though a larger share will cost more, it will also deliver more when there are profits to distribute.
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 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?
* Where does the partnership get the horses? Are they purchased at auction, from private sales or are they bred at the stables?
* Can you see the pedigree information for the horse?
* Does the syndicate engage in regional races or national ones?
* Which tracks do they plan to race on?
* Will the partnership give you any assistance in getting your license?
* What documentation will you receive at year-end for tax purposes?
* Are the shares of the racehorse partnership strictly made up of the cost of the horse or does the partnership markup that price?
* What is the length of the co-ownership contract?
* 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.
About the Author:
C. Anne Baker's life has included thoroughbred horseracing and breeding for countless years. She also contributes to horseracing charities. For a short period, visitors to her website PartnersInThoroughbreds.com can receive her notable guide Becoming included A horseracing Partnership
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