It used to be that only the wealthy could own a racehorse, but that’s no surprise when you consider the enormous costs involved in training, feeding and keeping a horse. That was all in the past. Today, the formation of syndicates to own and raise horses has made that assumption totally false. You too can now be a part-owner of a racehorse, enabling you to join in on the excitement and fun of being a member of the horse-racing world and share in the possible winnings with a very affordable investment.
The first step in the UK for joining a syndicate for horse ownership is to get in touch with the British Horseracing Board (BHB) at 0171 3960011. The BHB provides you with advice on the process and can give you lists of ownership syndicates who are accepting members. You can select a club from these lists or you can decide to join the other two hundred members of the club at Royal Ascot, such membership giving you grandstand and clubroom access. No matter which you join, you will have to register with the Jockey Club. It is also possible that friends can come together and form their own syndicate to own a racehorse, but there are still horse ownership regulations to follow.
One criteria you should follow in selecting a syndicate to join is the mutual feeling amongst the members about working together on their investment and your own feeling on how well you fit in. The more members there are in a syndicate, of course, the lower the cost per member — however, that also means lower amounts of any shared prize money for everyone.
The great hope is that the horse owned by the syndicate will win and return enough cash to pay its own keep. Though there may not much cash beyond that break-even point, there is still the pride racehorse owners feel when seeing their magnificent animal in action on the track.
Horses are the epitome of a finely tuned athlete and upkeep costs reflect that fact. Costs of equipment and supplies, vet bills, feed bills, training fees and stabling fees all mount up. Racehorses require a high level of maintenance if they’re meant to be a viable competitor in the racing world. Becoming a part of an ownership syndicate does mean that the financial burden is shared — find out what your share will be before you sign up.
A share in a syndicate of horse ownership can vary from hundreds to thousands and, ranked as an investment, the ownership of a racehorse is considered very risky. Because of the financial amounts, a discussion with your accountant may be in order to see if you should structure your entry into a racehorse ownership syndicate as a business investment for which it may be possible to claim related expenses or losses as tax deductions.
One decision to be made early on is whether to invest in a jumper or a racer. A jumper may be somewhat cheaper than a racer. Whichever type your syndicate chooses, find out as much as you can, including getting advice from the horse’s trainer and medical reports from a vet. You’ll want the answer to questions about injuries, race record, age and cost of upkeep.
The one thing to remember is that you get no guarantee that you’ll be buying a winner, but research is an excellent way to start. With good fortune, you’ll soon be sitting in your private owner’s box watching your horse race to victory. The proud feeling you’ll get from that moment will more than outweigh any financial worries you may have had along the way.