Each, and every, day, across Australasia, there are people buying shares in a racehorse syndicate where their horses are winning daily.
Apart from the love of horses and racehorse ownership, syndicates provide their owners with the unparalleled thrill of winning a race. It doesn’t matter if you are the sole owner or one of many. Nothing parallels winning with a horse where you have shares in a racehorse syndicate. Buying shares in a racehorse syndicate is as simple as 1-2-3.
But first, let’s look at what it means to buy shares in a syndicate.
Why Buy Into Racehorse Syndicate
Buying 100% of the shares in a horse can be a costly exercise. If you take a line through some high-profile champion horses, the costs associated with being a single owner are out of reach for most people.
Consider Sebring as an example. This champion horse was purchased for $130,000 and went on to race 6 times for 5 wins and a second. All five wins were in Group races and included the $3.5m Golden Slipper. He retired early due to injury with earnings of $2.5 million. Sebring was then sold for a reported $30 million to stand at stud, where he was a great success siring many Group winners for a service fee of $66,000.
Taking a line through the yearling sales at Karaka, you see some horses go for millions, others in the hundreds of thousands. To own and racehorses at the top end of the market means you need big pockets. Once thought to be “The Sport of Kings”, horseracing syndicates make ownership more accessible and affordable for the average person. However, buying shares in a racehorse syndicate gives you the thrill and excitement of race ownership without the same level of investment.
Here are some of the advantages of buying shares in a racehorse syndicate.
Syndicates Make Racehorse Ownership More Affordable
Horseracing syndication provides the capital for several individuals to purchase a horse that would otherwise be beyond their means. Pooling resources means more purchasing power. Ten friends may each be able to afford a $20,000 horse, but if all ten of them join together, they can afford a $200,000 horse.
Paying top dollar for a horse doesn’t always translate into a champion. There are many examples of affordable horses that have gone on to become champions. Sunline is the best example of this. She is a champion mare that went on to win NZ14,200,000. She was leased with a NZ$40,000 right of purchase.
Syndicate Owners Share The Costs
Racehorse syndication allows owners to reduce the ongoing costs of horse ownership. A syndicate offers shares in a horse which then allows multiple people to become involved. For example, ten friends might combine to purchase shares in a horse instead of each of them purchasing a horse on their own. They would each own one-tenth of one horse. After paying for the shares, they each would then share one-tenth of the ongoing expenses instead of paying 100% of share ownership and 100% of their horse’s expenses.
Horses owned by a syndicate are carefully managed by an equine professional with appropriate knowledge and experience. They choose the right trainers and jockeys who are familiar with the special gear some horses need for racing. Syndicate managers also know what to look for when buying horses to put into the syndicates. Choosing a horse with the right conformation and attributes is critical to potential success. That’s because, like human athletes, horses too are athletes. Certain types lend themselves to speed, others lend themselves to long-distance commonly known as stayers.
Here in New Zealand, all the professional syndicators have been “Authorised” by NZ Thoroughbred Racing (NZTR). They are all required to operate under a Bloodstock Syndication Code of Practice. This “code” is administered by NZTR and meets the requirements of the Financial Markets Authority (FMA).
The process to gain such “Authorisation” is rigorous whereby the syndicate manager is put through the hoops. This process is designed to provide prospective syndicate members with the “bona fides” of the syndicate manager. This gives potential racehorse owners confidence that with NZTR’s ongoing oversight and regulation, that all rules are being adhered to.
When considering buying shares in a racehorse syndicate, always look for those syndicates who have authorisation from NZTR.
Managed by Professionals
Horses owned by a syndicate are managed by professionals. By purchasing a share in a syndicate, it provides an opportunity for people who are interested in racehorse ownership but lack the knowledge and experience to do it alone.
For those more experienced, buying shares in horseracing syndicates provides them with peace of mind. They have the opportunity to be involved without having to worry about overseeing the day-to-day management and administration of their horse.
Imagine sharing the highs and lows of racehorse ownership with your besties and family. Syndicate members can also benefit from meeting and socialising with other members.
You may well find people with similar interests to you that become friends for life. Similarly, you might also find that the informal social setting of syndicate membership is a great place to exchange information and ideas among people with common interests.
Why Horseracing Syndicates are a Great Option
If you are new to racing and want to dip your toe into the world of racehorse ownership, buying shares in a racehorse syndicate is the way to go. ARO provides the most affordable racehorse ownership options in New Zealand.
Apart from making ownership more affordable, there are lots of great advantages to buying shares in a racehorse syndicate. You don’t need to worry about paperwork and other administrative costs. With ARO it’s all included in your ongoing fees from $1 a day per share.
All you need do is turn up at the track and experience the thrill of racing a horse where you are a part-owner.