ownership idea

[Nerula 1,403]

Yes its you regain 20% NOT a dividend. I think it is 7% of horses pay there way.

I always forgive the purchase price and look to see if the return can cover the costs. Only 10% have but the first horse made a big stake. That diminishes so need another toppie.

[tasman man 11 979]

On 8/2/2020 at 8:18 PM, Allovertheform said:

i think you need to change the way you think around horse ownership.

your not purchasing shares in one horse your purchasing shares in a company that will own multiple horses for the purposes of racing/breeding. 

 

Sorry I can't be more positive on this initiative but IMO it would be highly risky at the best of times ,let alone now with Co-vid making things so uncertain.

I have been in several syndicates and various ownership groups,all with the type of goals/purpose you are trying to achieve.

Once I was part of a group of 5 owners/investors in LAQ company , the idea being we would have 10 - 15 x horses and these would be traded thru sale and ready to run and a few would be raced by us.[ LAQC = Loss Attributing Qualifying Company ]

The group would pay tax on profits while any share of losses could be offset against our Individual tax.

It worked OK  for a few years then petered out....we had a few winners , sold an Oaks winner and I personally thought it a reasonable way to be involved. 

We originally put some money in each then took out a Bank loan to give the start up Capital.

Admin fees were kept to a minimum , except for a Chartered Acct to ensure we were compliant with Tax and reporting requirements.

Your model with significantly more money ,more investors ,Board members etc suggests more compliance costs and many people sucking off it.

Racing is difficult enough , breeding IMO is brutal.

At every level you would be competing with some very successful industry players.

A group of 10 or 20 in an ownership group can be demanding.......5000.......WOW ! .Like herding cats....big struggle !

A lot of well -known experienced folk have set up syndicates/ownership groups but found it 'too hard'.

Good luck at attracting even 100 investors .

My experience was , the ongoing training bills of many horses battling to win a $10k race, soon eats up your Group 1 winners earnings......with a few 'superstar' exceptions.

My recent breeding experience has also been fairly average.....our last filly from our mare brought in $5 k [a $15k stud fee ] and the previous one was even less.The mare who has had 4 x to races [ all winners] we recently sold for $600 [six hundred] carrying a $12k live foal positive.

Aside from above negatives I've had my share of wins / trophies / photos /excitement etc so it not all bad .......plenty of positives but  Investing in horses can be an expensive hobby .

[Littletramp 390]

Many a syndicate has been born based on a rosy looking spreadsheet dream, but life's just not like that.

The reality is that for the racehorse owner, the "game" is a hobby that will cost you money. It is profitable for the support industries such as vets, farriers, Industry body admin staff, sales companies and the like and then a small number of jockeys, feed merchants, trainers, transport companies, saddlery merchants etc can eke out a living, with the odd one rising above the crowd.

The breeding for sale game has it's own dynamics, and not many understand all the moving parts. Don't count on strolling in and coming out ahead financially there.

If you have a considerable role in doing a major part of the hands on work yourself on your own property, you have a runners chance, but for most others (I would say all) it should be considered a hobby.

If you can come in with the attitude that it will cost me $x, and I am happy to spend that to have some fun, you will be successful and have some fun.

 

[Red Rum 1,833]

Classic Thoroughbreds Plc was a big syndication company  , it almost done for Sangster , Magnier and Vincent O'Brien back in the day  and they had a dead set champion in Royal Academy,  Phoenix Thoroughbreds run this kind of large scale members/ investors model , they have had a few good horses and a bit of adverse publicity .

Good luck with the venture though , it's a tough business at the best of times and the successful syndicates sell it on the day out as well as a chance of return not merely the financial ROI as that's pushing shit uphill here with stakes to fees equation at this time .