BHG Articles

Once upon a time only people who owned great wealth could ever hope to own a racehorse. But now, horse racing partnerships have made it possible for people who are far less wealthy to own a racehorse as well.

In contrast to sole ownership, which is ownership by one person who has total control, horse racing partnerships represent ownership by many, typically having a general manager, controlling partner, or management by a racing stable. Racehorse partnerships are formed in various ways such as, friends sharing a common interest in the sport who come together to form a partnership. Another way of forming partnerships is through cooperation for the purpose of an investment venture, also known as a syndicate. With this partnership arrangement, you may not know or have any affiliation with the other partners outside actually sharing ownership of the racehorse and a love of the sport.

Horseracing partnerships and syndicates are generally set up as limited liability corporations, but there are other business entities that are possible for a partnership. Like the horses themselves, each partnership is different and each spreads the cost of the horse among the partners, making it possible for the partners to own a racehorse. How much they pay depends on how much of a share they have in the horse. There are a number of costs required of racehorse owners such as veterinary bills, farrier fees, transportation costs, insurance premiums, feed and care, training fees, jockey fees, and more.

The way the horse racing partnership is structured means that the initial cost of the shares is paid upfront and afterward a monthly or quarterly fee is paid. This amount is usually paid in advance for the expenses that reflect your percentage share and the racehorse. Any other costs that are required but were not budgeted for will result in more bills to pay.

Although there are many fees and expenses required with belonging to a horse racing partnership, there are many rewards as well. These include fulfilling a dream, joining an elite and prestigious industry as well as many other benefits when you belong to a racing partnership.

If you have always wanted to own a racehorse but simply could not afford it, a horse racing partnership may give you the financial flexibility needed to make ownership possible. Horse racing partnerships allow you to do more than just share in the adrenaline, exhilaration and thrill of being at the track. Being a partner gives you an affordable share of ownership and potentially a trip to the winners circle and a share of purse winnings.