Get this delivered to your inbox, and more info about our products and services. Sundries are another killer for owners with track fees, gallop fees, racing plates, more treatments, vets, drugs, and the floating again. Each member of the 20 person syndicate is responsible for 0.5% of the ongoing monthly costs. Action Alerts PLUS is a registered trademark of TheStreet, Inc. 5 RULES FOR TRADING DURING EARNINGS SEASON, MANAGING YOUR TRADING DURING A BEAR MARKET. We want to hear from you. Weve barely touched the surface of the ins and outs of horse racing shares, suffice to say, its an ongoing journey. A quarterly share of expenses for 5% would typically be about $350 for a horse at Emerald Downs. In our experience, the short and long answer is a resounding No!. Training prices vary from trainer to trainer. Alternative Investing - A CNBC Special Report - See Complete Coverage, Trader and horse owner Robert Masiello with one of his horses, Dixie, in 2008, Swiss to cash in on franc fracas and buy London homes, As alternatives go mainstream, investors scratch their heads, Alternatives not a scary option after all, Thoroughbred Owners and Breeders Association. Racehorse breeding software such as G1 Goldmine provides an edge for anyone interested in stakes winning breeding patterns. Our horse welfare practices begin when the horse is purchased and continue throughout each racehorses career, but the same ethos of horse health and welfare continues even after the horse has retired. These are the people you want to invest your time and money with, if becoming an owner is a dream of yours. ATB are the hardest working syndicators out there in our humble opinion. Data anomalies can provide early detection of lameness and health issues, providing the trainer with the ability to respond, tend to, and care for the horse earlier than traditional training methods alone. They put their money where their mouth is, and when they win, you win! 5% share: $2250 per year ($188 per month) At Nxt Level Syndication, to give our horses the best chance of success, we align with each states top horsemen including Ciaron Maher & David Eustace in Victoria and recently relocated hall of fame trainer Lee Freedman in Queensland. If youre coming into this expecting to make money youre crazy. We sold significant interests in him twice in the seven and eight figures and he earned a net of more than $5 million just in racing.". It is good to go in with an open mind as you may make some return on your investment if they win. All Rights Reserved. Yes, it is one of the most cost effective ways to become a racehorse owner. The partnership will dissolve when the horse is sold, claimed or retired. Editors' pick: Originally published May 7. This is where a syndicate comes into fruition, as syndicators can break racehorse shares up into smaller percentages to allow more owners to enjoy the ride.

The jockey's take will be 10%, and the agent will get 25%. Owners days at their horses stable or farm families and friends welcome, Opportunity to visit your horse outside of these days, by arrangement, Optional access to E-Trakka training results and session replays, A dedicated Nxt Level Syndication client liaison contact who you can call, text, message or email, Exclusive first access to any new syndication before the horse has gone to market, Race day entry when your horse is racing, by pre-arrangement, Access into the owners lounges on race day, when your horse is racing, by pre-arrangement, Prizemoney earnings for your horses race successes. Doing our due diligence by personally attending all the top thoroughbred sales across Australia helps the Nxt Level Syndication team to bring you the best chance of racetrack success. In addition, investors should be looking at horse size and scope, which refers to a horse's ability to develop and grow. Theyve given us lucky owners more rewarding racing experiences than one could ever imagine. Also the number of horses you can own a piece of increases by utilizing fractional ownership. ZTR distributes purse monies within two weeks of a race to partners by check via mail. I used to spend every year in the infield at the Preakness, he says. So, is being a part of a racehorse syndicate a good investment? Approximate ongoing costs: Goldencard Out To Supplement His Fontwell Success. "Figure out how much money you have available for a year and fund the acquisition of a fractional interests in a partnership," Irwin said. Owning a racehorse outright can be extremely expensive and you must take full responsibility for paying the upkeeps yourself; this is why it is often more affordable to invest in a syndicate. There are a few ways that a syndicate can make money; the horse could win or get placed in a race or profit could be made if the horse is sold on in future. Its a lifestyle that you're buying. Buying a share of a racehorse or shares of multiple horses can help investors mitigate risk. A 10 percent share could go anywhere from $2000 to $20,000, depending on the syndicator and the purchase cost of the horse. You name it, owners pay for it. We utilise our industry connections, thorough pedigree analysis and informed assessments to find you the right colt or filly conformation. "Unless the client can afford to burn the check and accept any return as a bonus find another hobby," said Charles Gordon-Watson, who runs an eponymous bloodstock agency in the U.K. "Having said that, unlike all other leisure pursuits, horseracing does have the unique ability to be staggeringly rewarding financially if you are lucky enough to hit it right.". Utilising the E-Trakka technology, the following horse welfare benefits include: Live streamed data is provided from the E-Trakka to the trainer empowering swift response to take potential preventative measures. Of course, the lure of winning large amounts of money attracts many owners to the sport, but it shouldnt be your sole focus. What are the oldest racecourses in the UK? Be the first to know about our latest news, horses and special events - as we take horse syndication to the NXT Level! Knowing all costs and markups before you buy, along with how to exit the syndicate if required. The residual value for a filly winning a stakes race affords syndicate owners a return on investment at the end of her racing career. Add in vet and travel costs, and the tab rises significantly from there. There is something thrilling about owning a racehorse outright, however it simply isnt affordable for everyone.

Horse racing is a numbers game with a good horse many times funding less accomplished runners. Data is a real-time snapshot *Data is delayed at least 15 minutes. The partnership model was pioneered by W. Cothran Cot Campbell, the president of Dogwood Stable, who rolled out the first public partnership in 1969 for a horse named Social Arrest. Got a confidential news tip? Heart health is at the core of every horses welfare and so heartrate including maximum heartrate, aerobic capacity and heartrate recovery are compared against the key areas of data. America Pharaoh, last year's Triple Crown winner, earns $200,000 a pop. For what its worth, anyone looking to get into a racehorse should consider just one percent, because youre still an owner. Just like life! The smaller the share, the lower the bills. Nxt Level Syndication send our syndicated horses onto experienced trainers with access to world-class facilities to further develop horses of champion potential. "My best advice is not to make an impulse buy, but instead thoroughly research the partnerships and see which one appeals to you.". You cant put a price on the joys you receive in racing, especially the unexpected ones, and they continue to flow to this day. Thankfully, there has been a significant increase in the number of horse racing syndicates formed across the United Kingdom, making the dream of racehorse ownership more accessible for more people than ever. This means problems can be explored and identified before a potential serious injury or health condition progresses. Everybody wants a piece of the pie and itsowners who foot the bill. One doesnt have to be a mathematician to realise youll need a fast, well-placed horse if youre in it to make money. Whereas the public may imagine one incredibly wealthy owner for a given horse, partnerships allow even middle-class folks the chance to own a piece of the dream.There are horses syndicates at all levels, for all prices. If one cannot enjoy and appreciate this aspect of the investment, he is likely to lose on all accounts.". However, as is the nature of sport, there is no guarantee of winning every single time, especially in horse racing. Of course, finding the next Animal Kingdom at a yearling sale is unlikely. Even beyond the initial price of purchasing a horse - which on average is $60,000 and can quickly rise to seven-figures - the expenses for maintaining and training a competitive racehorse amount to some $55,000 annually. Prices for the upper echelon of Triple Crown prospects range from $600,000 to $10 million after they have shown elite ability. You want to know that there is an experienced team behind your syndication with the right connections and skills to help you succeed. The partnership model has brought badly needed fresh blood into horseracing, says Dan Metzger, president of the TOBA. So much so, weve never considered another syndicator. Well, we met Nathan through ATB and the exciting Dandino campaign during the 2013 Melbourne spring carnival where the planets aligned for a multitude of fortunate owners. It allows you to enjoy the full experience at a fraction of the cost as well as being extremely rewarding. Nxt Level Syndication will always respect your privacy and never share your personal details. "A partnership is a great way to learn about the ins and outs of racehorse ownership with only a fraction of the investment. Knowing a horses lineage and family is an important consideration for all potential racehorse investments. An owners welcome pack including a personalised booklet on your horse, Nxt Level Hat, Nxt Level Stubby cooler and other goodies. But as a successful trader he had a little extra money to invest, and called West Point in 2005 with $10,000. A trip to the races for your horse can cost owners anywhere between $200 and $500 for that day alone. In fact some of the biggest and most memorable prize winners have come from syndicate ownership. You can buy into a horse for as little as $1,000, although more heralded prospects will likely run you at least $10,000 for a 5-to-10 percent share. But generally, insignificant stallions can be bred for some $1,000 or less. A Division of NBCUniversal. This then allows them to make the best decisions not only for training advancements, but also by empowering the trainer to prioritise the individual horses best interests. Further explanation into racehorse syndication would help answer their question. When your horse crosses the finish line a winner, it provides an adrenaline rush that will hook you for life. Each member of the 10 person syndicate is responsible for 1% of the ongoing monthly costs. All articles, images and links on the horseracingshares.com.au website are provided for entertainment purposes only. There are moments of grace, if we are lucky, in all our lives. "If somebody wants to invest in fractional interests, I would recommend googling 'thoroughbred racing partnerships,'" Irwin said. Since then Campbell and Dogwood have introduced 1,200 owners to racing, and bought more than $100 million in bloodstock, i.e. These are just some of the ways Nxt Level Syndication is taking racing syndication to the Nxt Level!

The most rewarding aspect of owning racehorses for us is all the great people you meet along the way. A steady stream of information and the level of involvement you can have in respect to the horses training and racing career are often crucial to owners. pedigreed horses. Racing expenses have grown somewhatin the past two years. "[Buying at a Breeze-Up] gives a seasoned professional a look at how that horse will move at a faster gait.". It stands to reason a good filly has the potential to be a good mare. Masiello, however, downplays the financial upside of horse ownership. In fact, according to noted bloodstock consultantBill Oppenheim, each year only2% of horses win $125,000, 4% win $100,000 and 6% win $90,000. As an owner he gets to meet the jockeys before races, visit the paddocks and sit in Irwins box. A smart operator would invest in a smaller share and get involved with like-minded folks in a horse racing syndicatewith reputable syndicators. So we quickly added, The long answer is, you do your due diligence and tap into someone you know and respect who has been through it all before, successfully.. Nathan is one of those people. Owning a racehorse is all about enjoying the thrills of racing with like-minded people. In addition to Team Valor, notable partnerships include Westpoint Thoroughbreds and Eclipse Partners. Each member of the 5 person syndicate is responsible for 2% of the ongoing monthly costs. All Rights Reserved. From the pomp and ceremony of Royal Ascot and the Dubai World Cup, to the outer ends of the universe at places like Adelaide River in the NT. Of course, that is one of the great things about it. Someone once said, Behind every good foal, there was a good mare.. I tapped Mark and said where is he? And he said, Hes gonna win it! ". Dont take our word for it. Whatever happens, at the very least youre guaranteed to have an amazing experience. The additional layer of technology and technical analysis provided by E-Trakka, coupled with the brilliant house husbandry of our trainers delivers a holistic and informed training regime for each horse that surpasses the abilities of traditional training methods alone. Check out our shares on offer to view the high quality of horse syndicates we currently have. It's coming out in the morning -- all of those things put together. A sound investment grows your money over time, not haemorrhage it with ongoing costs that would put some Superannuation funds to shame. ATB have been so good to us over many years. Common offerings include 5 and 10percent shares. Looking to start a horse racing syndicate to buy racehorse shares with your family or friends? We have identified seven key areas to focus on from the day a foal is born right until we are celebrating together in the winners circle. If you are someone who wants to experience the thrill of ownership but doesnt want the commitment or expense of owning and running your own stables, then a horse racing syndicate is the perfect option. For example, ten people could purchase one percent each to form a 10% percent syndication. Whether you have the means to buy a horse outright or want to use a bloodstock agent to buy essentially an index fund of colts, it pays as an investor to know how to get the most bang for your buck and what to look for to see if your horse is going to be a dud or a stud. Without a doubt, yes. Ive seen Fortune 100 CEOs going ballistic when they win a race.. Darren drives long hours every week moving his horses because they are like family. If you're into it, it grabs you; it's the most amazing thing you're ever going to do.". Weve received racing bills in recent years ranging between $450 and $968 per month when in training, while spelling costs range anywhere between $100 and $120 to laze in a paddock and recuperate from the rigours of racing. Use the following guide for syndicates up to 20 people, and for 5% & 10% shares. Some outfits go as low as 1%. Unlike picking a losing stock, as long as you're not throwing away more money than you can afford to lose, you're guaranteed at least a certain satisfaction in your return. But our hard work doesnt stop when we leave the horse with our trainers. In time, people will wise up to the exorbitant costs of owning a racehorse and will drive participants away. It is a mark of professionalism to be open and transparent around each horses medical assessments and shows the company has taken the time to selectively curate the best offerings of healthy horses for their clientele. It demystifies a place, the track, suffused with arcane rules and codes especially at a time of shrinking attendance. "Movement is key to athletic success of a racehorse. Monthly: $375 per month ($76 per month per person). "He generated a considerable amount of return, from his sale price to winning the Derby and World Cup and his eventual syndication. Your success is yours, so there is no worry that anyone not in the syndicate is getting a cut of the money.

In total, Dogwood has backed more than 70 stakes winners and competed in 10 Triple Crown races, including a win at the Preakness Stakes for Summer Squall in 1990, which came with a $750,000 purse. Now, where do we find those reputable syndicators? Visit our Australian Racing Links to find race club websites and social media links for metropolitan and provincial racing in each state.

Unless you have a horse like Winx, who was a freak, most owners will spend more money as an owner than theyll ever earn. Analysing all the data, reports and pedigrees of new horses is a crucial part of the initial process however much more is needed in identifying champion potential of a racehorse before the hammer goes down. All 5% & 10% share owners get their owners name in the racebook on race day plus associated owners privileges, and are responsible for the full ongoing monthly share costs. Lifelong personal dreams realised thanks to ATB. Surround yourself with good racing people and good things will happen. You can experience the thrill of ownership, win some prize money, keep your costs down and meet new people that share the same love for horse racing as you. Furey owned Animal Kingdom through Team Valor International, a top stable in Lawrenceburg, Ky., and a leader in getting regular folks like Furey into owning parts of top racing. "We bred him but offered interests in him as a yearling for about $100,000," he said. Be careful though, youll spend hours mixing and matching your favourite crosses. Of course, investors have to pay their fair share, based on percentage ownership, of horse training, boarding, and travel fees; think of it as management fees. Sign up for free newsletters and get more CNBC delivered to your inbox. Please be aware that this website does not sell racehorse shares or syndicate racehorses in any way, shape, or form, we leave that to the experts. It can also be the ultimate gift for the person, who has it all.Youre paying for the opportunity to catch lightening in a bottle, he says. An accomplished racehorse is much less risky, because its class level is established and it can and should earn racing income. Ensuring the right environment and education for your racehorse is an important component for success, as is luck. This extensive and fine-tuned process helps to give all of us the best chance with yearlings at auctions throughout Australia. Bennett Racing captured their first group winner when She Shao Fly won the 2019 SA Sires Produce Stakes in Adelaide. Contact us today on 08004480681 or email us at info@devaracing.com to see how you can join and experience the thrill of ownership! For those looking to diversify their portfolio while potentially giving their money a little giddy-up, investing in thoroughbreds is an exciting avenue to take, despite the risks. At Nxt Level Syndication, we have invested in the most recent foal of three-time Melbourne Cup winner Makybe Diva, as well as the full sister to boom dual Gr1 winning mare, Loving Gaby. (More precise data is unavailable because thoroughbred racing is very decentralized. First and foremost, its imperative to deal with only licensed syndicators who can provide a Product Disclosure Statement (PDS) and partnership agreements. In addition to conformation, which describes the leg alignment, and athleticism, racehorse expert and consultant Tony Cobitz recommends that investors zero in on pedigree. Nathan Bennett had a dream to become a syndicator and realised that dream in 2016 when he formed Bennett Racing. He has since invested close to $1 million through West Point. Assessment of the horses family tree with a strong black type pedigree is one factor that can contribute to the likely success in the racehorse industry. 2022 CNBC LLC. Lifelong friendships also formed that spring. For those looking to diversify their portfolio while potentially giving their money a little giddy-up, investing in thoroughbreds is an exciting avenue to take as an alternative investment, despite the risks. In our experience, especially in recent times, the bigger the stable, the more you pay per month. How do we know that? Thomas Clark, a bloodstock agent in Lexington, Ky., also recommends buying two-year-old horses at Breeze-Up sales. He was amazing, Furey remembers. This model has pros and cons both ways, but at least it budgets your ongoing costs along the way. Many racehorses never make it to the track, while a good number fail to earn enough prizemoney to pay for their upkeep.