Racehorse Ownership

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Luke7

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Evening H&H,

I was looking at starting a Racing Syndicate for 50 people in the near future and wanted some advice on the financial plans.

Weekly

£455 Training & Vet Fees
£50 Racing Plates
£1 Travel Per Mile
£394 Racing Partnership Registration
£49 Racing Colours Registration

£21,840 it comes to for the yearly training of a racehorse.

Looking to distribute this cost amongst 50 of us in a Syndicate at 2% shares.

Each Syndicate member would pay £9.10 a week (£455/50)
Each Syndicate member would pay £50 for a 2% share

I will purchase the horse at the sales - looking for a decent sprinter at around £10,000.
 
£455 x 52 = £23,660

£9.10/ week x 52 = £473.20 x 50 people = £23,660.... not £21,840


So, are the other costs you've mentioned included in this figure?

£50 Racing Plates
£1 Travel Per Mile
£394 Racing Partnership Registration
£49 Racing Colours Registration

They can't be, because you won't know the mileage required.

And 50 people paying £50 each = £2500. Who pays the other £7500 to buy the horse??

I've always wondered how syndicates worked!
 
As Spruce said, £455 x 52 = £23660

So if training is £21840 you're allowing £1820 p.a. for vet fees? I'd probably think that rather conservative...

You'll pay £7500 of the purchase cost but receive the same 2% share as the other 49 members paying £50?

As for other costs... Ongoing admin and legal assistance wrt contracts... If eight people don't pay who covers the cumulative deficit week by week until non payers can be replaced?

Transport, entry fees, insurance, race groom, jockey, gallop fees for the horse...
 
I would think the training fees for a flat horse could be a lot more than estimated. I know a few trainers who cover all the training and vets costs for approx £2k pcm. That's quite a bit more than you are estkmating. Have you got quotes from a trainer?
 
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