How To Start A Race Horses Business
Don’t want to spend a fortune yet still want to own race horses?
Although royalty, rock stars, celebrities, and tycoons may dominate the “Sport of Kings.” Racing enthusiasts with less cash can still take part in the sport in a number of ways.
There is, however, one restriction. Investing in a thoroughbred racehorse entails some degree of risk. Just like with any other investment.
You need a budget, you need consultants, you need knowledge, and you need a degree of good fortune. And also the ability to take the ups and the downs.”
Because, practically by definition, if you go to the races as an owner, you’ll nearly always come home with a loss rather than a victor.
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The cost of outright ownership of a racehorse can be high, and the likelihood of becoming wealthy is slim.
In October, bidders spent a record 162 million guineas ($220 million) at Tattersalls’ annual sale of Europe’s top yearlings.
This includes a jaw-dropping $4.8 million for a colt bred by illustrious stallion Dubawi. Members of the Qatari royal family now own it.
Horses can cost between $2,000 and $20,000 for people with less affluent means (ROA).
A racehorse costs money to train as well. According to the ROA, the average annual cost of training and competing in a racehorse in Britain is $29,280.
It makes sense that more than 60% of all racehorses trained in Britain have joint ownership. Through a syndicate, or through a partnership.
Syndicates Of Race Horses
Syndicates often give members the opportunity to purchase a stake in a racehorse in exchange for a monetary commitment.
Regular updates from your racer’s trainer and access to owner-only facilities like the owners’ and trainers’ bar and the parade ring are just a few of the benefits that come with membership. Other benefits include yard visits to observe your horse in training, and attending the races as an owner.
The majority of syndicates will give their members a share of any prize money the horse wins or of any earnings from the sale of the horse or the animal’s breeding rights.
This might be a lucrative alternative given that British racing offered $208 million in prize money last year. But it’s important to confirm that the initial lump money covers expenses related to racing and training, like veterinary costs and travel to and from events.
The English Syndicate Of Race Horses
Consider the English racing syndicate Middleham Park Racing, which, according to its website, has generated more than 1,000 wins. A 5 percent interest in a two-year-old brown filly by the sire Dawn Approach, a past 2,000 Guineas champion, would cost you $2,853 plus a $188 monthly charge. A $1,426 down payment and an ongoing $104 monthly payment for a share of 2.5 percent.
Each stake in a runner from Highclere Thoroughbred Racing costs between $9,015 and $61,610, covering all expenses through the completion of the horse’s two-year-old career.
On its website, it asserted that “a little additional sum, which is clearly specified on the agreement form, is due for the second year.”
Highclere, which goes way back to 1992, has developed into one of Europe’s best syndicates, producing seven European champions. These have amassed prize money totaling more than $16 million. John Warren, who also counsels the British monarch Queen Elizabeth II, is its bloodstock advisor.
The name of the syndicate is from Highclere Castle, a grand mansion in the south of England. This is the location of the “Downton Abbey” film set. Harry Herbert, the founder, chairman, and managing director of the syndicate was born there.
Being a member of one of Highclere’s syndicates also allows you the chance to mingle with the affluent and famous, since prior owners have included Elizabeth Hurley, Hugh Bonneville, and Alex Ferguson, the former manager of Manchester United.
Joining a racing club, which costs an annual fee in exchange for benefits comparable to those in a syndicate, maybe a more affordable option. Members don’t have an interest in the horse, which lowers the cost, and that is the only difference.
The majority of racing clubs will provide a portion of any winnings to their members, but it’s wise to double-check in beforehand.
Elite Racing Club is an organization with over 10,000 members based in England that has been in the racing business for more than 25 years and competes in its own black and white colors. One needs less than $22 a month for membership for the entire year.
Four-year-old filly Marsha is one of the club’s own-bred racehorses. Was auctioned off to Ireland’s Coolmore Stud for a record-breaking $8.2 million, and the club declared victory. At the time, Elite declared that it would use the sales revenues to fund the next breeding initiatives.
How much you are ready to spend is the most crucial thing to establish in your own mind. Before you go any further when you are coming into racehorse ownership for the first time.
However, there are a ton of chances available for race horses owners in Britain, across Europe, and beyond. It is a worldwide sport.