Thoroughbred Horseracing Partnerships : A Complete Introduction
Article Written By: C.AnneBaker
Have you considered a thoroughbred racehorse investment, but you had no idea where to begin or whether it would be affordable? If you have ever been curious about this, you?re in good company. Many potential investors think about buying an interest in a well-known thoroughbred racehorse. In reality, the best-known thoroughbreds don?t have investing shares available, but there are others that have horseracing partnership opportunities available. When you invest in thoroughbred horseracing partnerships, you are buying a share of the partnership. Your share is measured as a percentage and it may be as small as 1% or as large as 45% of that partnership. The size of your share determines your share of the costs of the horse as well as your share of the earnings.
Instead of assuming all the risk of owning a thoroughbred, you assume a smaller amount of risk by joining other investors in a horseracing partnership. Your risk is the size of your percentage in the partnership. If you are new to the industry and our unsure about the investment, you might consider purchasing a very small portion such as 1%. If you are a confident investor that is familiar with the horse racing industry, you may be prepared to purchase as much as 45%. Across the United States, there are a number of racing stables that engage in syndicates and horseracing partnerships that offer co-ownership. Each of these partnerships or syndicates is a little different in how they choose to manage their group. Before you invest in a partnership, you must be familiar with the rules of several horseracing partnerships and syndicates in order to find the one that matches your investment goals. A few things to consider about syndicates or partnerships: * Does the partnership offer the size share you are interested in? Some groups do not offer shares smaller than 5%. * Is the share price of the partnership based on only the cost of the horse or is it based on a cost plus a markup? * Are there any fees for managing the partnership? * Will you be responsible for monthly costs that are for more than the upkeep of the horse? For example, there may be advertising costs due. While advertising can be helpful, it can also be expensive. * Is the managing partner available and willing to sit down with you both prior to and after contract signing? The sport of thoroughbred horseracing offers many investment opportunities but you must remember the stakes are high. You could just as easily lose as you could win. However, by joining a horse racing partnership or syndicate you can defray some of the costs and risks associated with being an owner.About the Author
C. Anne Baker's life has included thoroughbred horseracing and bloodstock for many years. She also contributes to horseracing charities. For a limited period, visitors to her website PartnersInThoroughbreds.com can download her notable report Becoming included A horseracing Partnership
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Thoroughbred Horseracing Partnerships : A Complete Introduction
