How does a horseracing partnership or horseracing syndicate work? There are companies that run horseracing partnerships and syndicates. These allow several people to own the same racehorse. For a person to join in with a horse racing partnership, the person must buy into the partnership by buying a share of the horse. The share is a percentage of the cost of the horse and sometimes a markup of that cost as determined 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 horseracing partnership or syndicate operates slightly differently based on policies set forth by their respective company or managing partner. Because there are variables across the board, it would be in your best interest to obtain data from several likely partnerships and compare what they have to offer before making a final decision. By doing some research and making comparisons, you will have a better feel for where you would like to make your investment.
Some other things you need to know when comparing syndicates include:
* What is the minimum and maximum share percentage available?
* Is there a management fee involved? If so, what is the amount? Who is the partnership?s current managing partner? Are the other owners able to contact the managing partner?
* 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 this particular syndicate race regionally or nationally?
* Which tracks do they plan to race on?
* 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?
* Does the racehorse partnership add a markup amount to the cost of the horse when determining the cost of each share?
* How long is the co-ownership contract for?
* Is insurance included as part of the monthly expenses?
* 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. - 16928
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 horseracing partnership or syndicate operates slightly differently based on policies set forth by their respective company or managing partner. Because there are variables across the board, it would be in your best interest to obtain data from several likely partnerships and compare what they have to offer before making a final decision. By doing some research and making comparisons, you will have a better feel for where you would like to make your investment.
Some other things you need to know when comparing syndicates include:
* What is the minimum and maximum share percentage available?
* Is there a management fee involved? If so, what is the amount? Who is the partnership?s current managing partner? Are the other owners able to contact the managing partner?
* 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 this particular syndicate race regionally or nationally?
* Which tracks do they plan to race on?
* 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?
* Does the racehorse partnership add a markup amount to the cost of the horse when determining the cost of each share?
* How long is the co-ownership contract for?
* Is insurance included as part of the monthly expenses?
* 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. - 16928
About the Author:
C. Anne Baker's life has involved thoroughbred horseracing and bloodstock for countless years. She also contributes to horseracing charities. For a limited time, visitors to her web site PartnersInThoroughbreds.com can download her notable guide Becoming Involved A horseracing Partnership
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