Horseracing partnerships and syndicates are run by companies and sometimes by trainers and are designed to allow multiple people to own a racehorse. How does that work? To join a horse racing partnership, you would purchase a share, which is a percentage of the total cost of the horse plus any possible mark-up on the part of the horseracing partnership company.
As a partner in a racehorse, your costs involved with ownership are equal to your partnership share. This allows for even distribution of the total monthly expenses across the different partners according to their share of ownership. Shares are calculated as percentages with some shares being larger than that of others resulting in a higher allocation of expenses to those particular partners. However, the amount of income they will receive will also be higher than someone whose percentage of ownership is smaller.
There are different rules in place for every horseracing partnership or syndicate out there. Each group is governed by either the company that runs the partnership or by the managing partner. There are so many possibilities involved in these partnerships, doing some comparison shopping is recommended. To do this properly, ask several partnerships for data in order to find out what you have to gain from each. By comparing syndicates before making your decision, you will be making a far more informed choice.
Some other things you need to know when comparing syndicates include:
* What is the minimum and maximum share percentage available?
* Can owners contact the managing partner? Who is it? Is there are fee for managing the partnership? How much is the fee?
* Where are the horses purchased from? Are they bred at the racing stable or are they purchased from private sales and horse auctions?
* Do you have access to see the horses pedigree information?
* Does this particular syndicate race regionally or nationally?
* Which racetracks are they planning to use?
* Does the partnership / syndicate assist you in obtaining a license?
* What type of documents will you be given at the end of the year to assist you with tax preparation?
* Are racehorse partnership shares based on a percentage of the actual purchase price of the horse or do they add a mark-up?
* What is the length of the co-ownership contract?
* Will your monthly fee include the cost of insurance?
* If you should decide to back out of the partnership, how is it done?
As is apparent, there are a number of considerations to keep in mind when deciding on a horse racing partnership. When approaching each of the syndicates that you are interested in, tale a checklist and question list with you. Then, compare each syndicate?s answers with the others. This will give you the information you need to make the best decision about your investment. - 16887
As a partner in a racehorse, your costs involved with ownership are equal to your partnership share. This allows for even distribution of the total monthly expenses across the different partners according to their share of ownership. Shares are calculated as percentages with some shares being larger than that of others resulting in a higher allocation of expenses to those particular partners. However, the amount of income they will receive will also be higher than someone whose percentage of ownership is smaller.
There are different rules in place for every horseracing partnership or syndicate out there. Each group is governed by either the company that runs the partnership or by the managing partner. There are so many possibilities involved in these partnerships, doing some comparison shopping is recommended. To do this properly, ask several partnerships for data in order to find out what you have to gain from each. By comparing syndicates before making your decision, you will be making a far more informed choice.
Some other things you need to know when comparing syndicates include:
* What is the minimum and maximum share percentage available?
* Can owners contact the managing partner? Who is it? Is there are fee for managing the partnership? How much is the fee?
* Where are the horses purchased from? Are they bred at the racing stable or are they purchased from private sales and horse auctions?
* Do you have access to see the horses pedigree information?
* Does this particular syndicate race regionally or nationally?
* Which racetracks are they planning to use?
* Does the partnership / syndicate assist you in obtaining a license?
* What type of documents will you be given at the end of the year to assist you with tax preparation?
* Are racehorse partnership shares based on a percentage of the actual purchase price of the horse or do they add a mark-up?
* What is the length of the co-ownership contract?
* Will your monthly fee include the cost of insurance?
* If you should decide to back out of the partnership, how is it done?
As is apparent, there are a number of considerations to keep in mind when deciding on a horse racing partnership. When approaching each of the syndicates that you are interested in, tale a checklist and question list with you. Then, compare each syndicate?s answers with the others. This will give you the information you need to make the best decision about your investment. - 16887
About the Author:
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 download her excellent report Becoming included A horseracing Partnership
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