Unlike other sports where team ownership is economically impractical for most people, horse racing has introduced various ways for people to participate in horse ownership through racing associations—Tl associations they offer.
So where do you get the information from?
The Internet is a source for this information, there is nothing better than a close, personal look. Like buying horse races, you want to look under the hood, and I highly recommend it.
Every year the Belmont Racetrack, like most racetracks in the country, hosts a luncheon for new owners. I attended lunch, and the cost was $ 50 per person, but it will vary from track to track. These sessions are very informative. The organizers (New York Racing Association) do their best to convince you that you should treat this as a hobby, but whenever they tell me that at the end of each year I will receive a K-1 tax form, I consider it an investment. All the luncheon speakers reinforced a common thread; don’t go into this business expecting to make a quick buck, and that was refreshing.
Coaches are the key
Several keynote speakers at the luncheon I attended were Gary Contessa, one of the leading coaches at Belmont and Aqueduct, and Kieran McLaughlin, an Eclipse award-winning coach and Belmont Stakes winner. They were both very open and frank about their rates. The trainers are more than willing to meet with people interested in owning racehorses; they will invite you to spend a day in their stable and answer any questions you may have.
Association management makes the difference.
There were several racing associations represented at the luncheon. The Association offers you the opportunity to buy a percentage or quantity of shares in a horse. This method of ownership allows people with modest amounts of disposable income to own a piece of a racehorse. On average, the smallest stake you can buy is 3%, but some associations offer lower percentages.
Each association is managed a little differently, and here the Internet is useful because most associations have websites. Take a look at all you can. Some of the associations charge an upfront fee, some take a percentage of the money earned, others do both.
We met with Tom Bellhouse, representing West Point Thoroughbreds, they are the owners of King Connie. Also present was Rich Christiano from Sovereign Stables, owner of Negligee. Both were excellent sources for describing the different types of partnerships they offered. They run and manage the association, make those decisions, and deal with day-to-day headaches. When, where and in what race your horse participates.
They run the association, and the success of the association is their primary concern.
The purchase cost to participate in the association will vary depending on many factors. This is your initial investment, so please read all the information about this amount carefully. The average cost of keeping a horse in training in New York is about $ 50,000 / year. So if you own a 5% stake in a horse, the ongoing cost is $ 2,500 / year. T
hat average cost basically includes the cost to the trainer (since the trainer’s stable houses the horse). In our example, you have a 5% interest; the maintenance cost is approximately $ 210.00 per month. You will be billed quarterly, in advance. Therefore, your quarterly maintenance cost would be $ 630.00 per quarter. Again, this assumes that your horse does not require additional care (if the horses do, this additional cost is distributed among the number of members of the association). Remember that the numbers I am quoting are relative that means you must read and understand these costs before entering society. Again, read the leaflet carefully and ask questions.
Thank you,
Glenda, Charlie and David Cates
