Kingshill

Syndicates - Rules/Special conditions

2 posts in this topic

Hello All - Just putting a syndicate together for a Yearling - Lease with a Right of Purchase - After some thoughts from Cafers with some possible things to include in the lease conditions - Things like voting majority for any major decisions (Was thinking 55 or 60%), clauses around non payment (how long do you give someone to catch up payments before kicking them out?) etc.

Maybe something I haven't thought of?

Thanks in Advance:rcf-happy-5: 

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Some good advice from me is

:   go to the  Syndicator's   I love racing site.

:https://loveracing.nz/Ownership/Syndicators/Become-an-Authorised-Syndicator.aspx

: read through  the terms and conditions from Go Racing/ Te Akau/ S Marsh/ Graham Richardson/Shaune Ritchie  etc. 

:most syndicates name a "Manager" for their owners. What percentage of any earnings do they receive,and are there monthly Manager's fees ?

:If the horse is sold after purchase by the syndicate, what % does the Trainer get? Most times this is 10%. But Is it 10% of the valued added price or 10% of the original purchase cost?

  This needs to be clearly sorted  on  day one of the syndication.

   Example:Karaka Book 2   2017 : A Yearling Colt bought for $60 K. >> wins a Trial/Race  as a 2 year old >His Racing style  appeals to an Arab  or  An Asian . 

>>>sold for $300k  The value added ( $240K  by the Trainer is what the syndicate may think they should  pay their 10%  on.Some sydicates may agree on a 15% 

Others 5%.

: Real Estate Agents negotiate a % sale fee.On a sale price  structure. Usually starting at $250  K.

:Race horse Syndications are like  Pre nuptial Marriage agreements  :

  my suggestion is to read the biggest contractual settlement from That wanker Google founder :

Sergey Brin and Anne Wojcicki 

 

Good luck: Please PM me the horses breeding !
Rev

 

 

:

 

 

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