Syndicates and Partnerships
A “syndicate” is a group of individuals combined to own a horse. Any horse could be “syndicated.”
Historically, in horse racing, racehorses were owned by a single person or organization/farm. You could easily see why it was called the Sport of Kings given the costs of racehorse ownership that we’ve been reviewing monthly.
The most famous syndication was when Secretariat was retired to stud at Claiborne Farm in Kentucky. He was syndicated as a stallion for 32 shares at a total price of over $6 million dollars. No word on the syndication price for American Pharoah.
We could also classify the Emerald Racing Club as a syndicate. With 188 owners, you each owned .53% of the horses.
Syndicates evolved to spread the costs of racehorse ownership among multiple individuals. It’s a great way to “buy-in” on a racehorse without huge financial outlay and you can find the level that is appropriate for you – whether it’s 50% ownership share, or just 5% ownership share.
Say for example, a group of you got together to buy a yearling. That’s a syndicate. Or one person could purchase a yearling and then seek out partners to campaign the horse – that would also be a syndicate.
A syndicate or partnership would be a logical next step if you’d like to continue to dabble in racehorse ownership outside the realm of the Emerald Racing Club.
For your convenience, we’ve gathered together a list of 2015 Syndicate and Partnerships that race at Emerald Downs and the contact person. This is by no means a complete list, but it is a starting point. Each syndicate is a bit different, so find the one that is right for you!
Here are some questions to consider to enter a syndicate responsibly:
- Ask questions! It’s your money and you are entitled to know how it’s being spent. What percent of the horse will you own? What percent of expenses will you pay?
- Understand the structure – who will make the decisions regarding the horse? Is there a syndicate manager? Will the trainer make the decisions? Or will it go to the person with the majority interest in the horse?
- What expenses are involved, how much will you owe, and what can you earn back?
- What type of horse or horses do you want to own? A yearling that may take two or three years to make it to the racetrack (if it makes it)? An actively racing horse? A first time starter?
- Will you be able to visit your horse? Is this important to you?
- Where will the horses race? If it’s important to you to see your horse race in person, then a local syndicate is a good option.
Some of you have indicated a desire to further your interests in racehorse ownership, be it this year or in the future.
Missing Tribal Waters? Want to claim him? Consider putting together your own ownership group!
If you could email me at email@example.com, I will begin putting you in touch with each other in case you’d like to band together to start your own partnership.
I also wanted to pass along an excellent video series produced in the UK “How to Make a Racehorse.” It follows four youngsters as they develop for the races and is quite a good little online series. Keep in mind some of the terminology and methodology is a bit different in Europe versus the US.