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So You Want to Buy a Horse (Part 1): The Values and Merits of Owning a Racehorse, from an Investor’s Perspective
You wouldn’t be on our page if you weren’t already familiar with the thrill of putting a bit of money on your favourite horse. Take that experience, and multiply by a thousand — perhaps more — because that’s what it feels like to own your very own racehorse. “But isn’t horse ownership solely reserved for the multi millionaires”, you ask? Surely it takes more than a few tidy salarymen to have a stake in the sport that’s known as the Sport of Kings.
The truth is, you don’t need to be among Australia’s elites to get involved as a racehorse owner. If you’re in it for the sport, then you’ll definitely appreciate that there are a few accessible ways for you to own, or partially own, your own racehorse. Whether you’re in it for the love of the race, or want to get more involved with the larger racing community, racehorse ownership is about more than the prize money involved. It may not seem the most conventional investment, but it certainly is a way to get amongst it with other trainers, breeders, and fellow horse owners.
How Close Are You to Owning Your Own Racehorse?
You wouldn’t jump right into a decision like starting a mortgage. Would investing in your own racehorse be any similar? It’s not a purchase decision on a house, but buying or owning shares in a racehorse isn’t a decision to be taken lightly either. It’s still possible to round up enough mates or family members to split the cost evenly among yourselves as a group of owners. Racehorse ownership is attractive for its own set of reasons, and splitting the cost and upkeep of a racehorse has been a popular way for some investors to get more involved in the sport.
There may be many ways for you to become the owner of your own racehorse, but one thing remains certain: the alluring potential of prize money to be won, and all the trimmings of trackside entitlement that come with each exciting race. Before you get carried away with visions of racetrack glory, why not consider which of the following modes of racehorse ownership might suit you best?
Leasing or Sharing a Horse
This is the most popular and affordable ‘entry-level’ way to go about becoming a racehorse owner. With no up-front purchase price typically required of lessees, breeders often lease their horses to a partnership or syndicate for a predetermined lease period. Leasing agreements such as these involve lessees paying the breeder a third of any prize money won. However, it is the partnership of lessees who decides the racing career of the horse during the term of lease.
Syndicating a Horse
You can own a horse as a member of a registered and licensed syndicate. Syndicated groups of members are known to purchase yearlings through auctions, and issue shares through advertising in the media. This makes their horses co-owned, and any prize money won in races is distributed according to membership entitlements and owned shares.
As a Partnership of Owners
Most race clubs will recognise a partnership of owners, depending on what rules apply. Some may accept partnerships of up to 10 owners, while others limit this to six named owners. During a race, a racehorse’s owners are featured in a race book, and presented with raceday privileges. Among these include entrance to the members’ enclosure and mounting yard at a race club. As exclusive as this sounds, it’s where racehorse owners get to rub shoulders with other experts in the sport.
As a Sole Owner
It’s all in the title, and sole owners claim 100% stake of any prize money won. Of course, this also comes with full responsibility over any upkeep and training expenses involved with your thoroughbred. This is excitingly where the full extent of racehorse ownership comes to bear, especially from being able to name your horse, and race it in your chosen colours. Management of your stable could also become an easier task to handle, since you maintain direct communication in any decision making to do with your horse’s racing career. Of course, some racehorse owners may consider leasing their horses out for a term, so others might split any cost of upkeep required.
What Does it Cost to Own and Upkeep a Horse?
It’s typical for a syndicate of members to pay between $50,000 to $250,000 in total for a yearling at an auction. This will depend on a variety of factors, which of course include breeding and pedigree. Depending on your entitlements as a member within a partnership or syndicate, you could easily see this cost reduced according to your share of ownership.
Of course, monthly upkeep expenses do factor in as part of your ownership of a thoroughbred. Assuming full ownership of your horse, monthly expense amounts can go up to $3,500 for metropolitan stables.
Finally: The Upside of Prize Money and Entitlement
If you’re in it for the sport, then there are few things as satisfying as the feeling of owning your own racehorse. Apart from taking pride in selecting your race colours and naming your horse, horse ownership obviously opens the doors to the race club elite. Here’s where you get to experience the racetrack like never before. Socialise, mingle and network among other horse owners, breeders, and trainers — and of course, look forward to the prospect of prize money that all owners seek. Depending on whether it’s a metro, provincial, or country race track, prize earnings can net owners up to $100,000 in winnings — tax-free if your ownership is a hobby.
Keen to weigh out your odds outside of just the usual punt? Then it could be time you think about getting involved as the owner of your very own thoroughbred racehorse.
Nakeeta by half a length
Nakeeta
Ebor winner 2017
Nakeeta
The Ebor winner for 2017 makes this horse ideal to win the Melbourne Cup.
A nose
2leghths
Nakeeta by 3/4 of a length
0.75 lengths
1/2 length first Scottish horse to win
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1.5 lengths
I think by a photo finish
.4 length
Will win by 1.25Lengths
3 Lengths
Its a guess
Nakeeta will win by 1.75 lengths
3/4 length
A head
Nose
0.5L
1 length
Half a head
Neck