Wednesday, January 21, 2009

You Can Own a Thoroughbred Racehorse for Cheap

By C. Anne Baker

Thoroughbred race horses come from a proud lineage goes back to the 17th century, and they re steeped in long-held tradition. If you can own even the smallest stake in a thoroughbred you can consider it a privilege. A thoroughbred racehorse may cost anywhere from thousands to millions of dollars, and ownership of thoroughbreds is hard to come by. If youve had the dream but not the money to buy one, joining a thoroughbred partnership or syndicate might be the answer for you.

Horseracing partnerships or syndicates allow you to own a small percentage of the horse called a share. Other than the cost of your share, you will be responsible for paying an amount equal to your share of ownership, which covers the cost of monthly expenses related to the upkeep of the horse. The type of expenses as well as the amount will vary depending on each thoroughbred partnership and how it is structured.

Some of the monthly expenses related to owning a thoroughbred racehorse include:

* You buy an initial share of the horse which can be anywhere from 1% to 45% of the total.

* You will pay the trainers fees. The rate per day will vary but it may be anywhere from $25 $120.

* Feeding and care of the horse - again, this varies.

* Farrier costs are for the regular care of the horses hooves and may cost from $80 $220.

* Veterinary fees - routine care can range from $100 per month and up.

* The cost of transporting the horse will depend on fuel costs.

* You must pay for insurance premiums.

* Entry fees for the race will vary from track to track.

* Association dues and/or fees - vary by association, subscription, etc.

* You will owe jockey fees as well as 10% of any winnings.

* Management fees may be due based on the guidelines of each partnership. These may be a set amount or a percentage of the horse?s winnings.

* Advertising Costs - vary, advertising can range from a few hundred dollars to several thousand and up.

As this makes clear, these expenses add up and vary quite a bit. When investigating any horseracing partnership or syndicate, find out how much each is charging per month before you invest.

A partnership with expenses that are too high may not be the partnership for you. And in researching several partnerships, you may find one that fits your investment budget better and has a lot to offer you.

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