How do partnership horses work?
STATE-OF-THE-ART BLOODSTOCK INVESTMENT PACKAGE
The Club has bought several horses in recent years using its successful partnership model and now plans to buy another one from the 2010 Horses-In-Training Sales.
What follows is a costed example of the sort of partnership arrangement that is available through Group 1 Racing.
This example is based on ten shareholders, which for the purposes of this example is a nice number to use. We anticipate no shortage of interest via the Club for a project of this calibre.
It's the same partnership model (used for the purchase of Be Wise Girl, Gouranga and Lordship), and is a state-of-the-art bloodstock investment package - combining bloodstock investment on an 'at cost' basis with the lowest ongoing costs in the market. We are very proud to this model; nowhere else one can purchase a substantial stake in a serious horse, with full involvement and
yet pay just £44 per month towards ongoing costs. This is a great advantage our shareholders, whether they simply want cheap racing or to go on to own several horses.
The Club has produced a compilation DVD, featuring many of its winners over several years, to illustrate its success at both buying and placing horses and we will be pleased to forward this to interested parties free of charge on request.
NEW PARTNERSHIP HORSE FROM THE 2010 SALES
Example purchase price: 10,000 guineas (£10,500). To be trained by A W Carroll, Cropthorne, Worcestershire.
Ownership:
Partnership shareholders (10 x £1,050 = 10,500
Total £ 10,500
Any additional sundry expenses with regard to horse transport and bloodstock advice to be borne by Group
1 Racing.
Membership of Group 1 Racing:
All owners must be (or become) members of Group 1 Racing. The normal charge is £795 for 3 years' membership, however for new bloodstock investors joining the Club in this way the fee would be substantially discounted to:
New partnership shareholders £475.00
All members are entitled to 1 free Owners and Trainer's badge every time a Club horse runs anywhere (currently the Club owns 6 horses.) Additional badges for guests are available at half price, typically £8.00 each. Partnership owners get priority for free racecourse lunches, including wine (an increasingly new addition - but often restricted to 6 persons.) All members can attend at the trainer's yard and gallops whenever and as often as they wish and are made very welcome.
The shareholders remain the sole owners at all times in the equity and obtain the full value of the horse upon resale, in proportion to stake owned.
Upkeep:
The Owner's go into partnership with Group 1 Racing (1994) Ltd., whereby Group 1 Racing agree pay a majority of the complete upkeep costs (trainer's fees, vet, farrier, entry fees, jockey fees, horse transport etc) in exchange for running the horse in the Club name and Club colours. Typically these costs are likely to amount to in the region of £15,000 per annum. Owners will be left to pay a fixed monthly contribution of:
Partnership shareholder £44.00 per month
This is a capped figure with no calls for funds from Owners in the event that costs subsequently overrun the anticipated budget (underwritten by the Club).
Prize Money:
Separate accounts are kept for Partnership horses. Prize money is distributed annually in proportion to upkeep contribution, where prize money received exceeds the Club's contribution towards upkeep
To pay out, the horse would therefore need to win in excess of £15,000 in any year to make a nett return on monthly contributions, which would then be divided according to keep contribution. It would only need to earn £9,000 to start to return the monthly contributions.
With the calibre of horse expected from this outlay, this is all very feasible.
Horse Acquisition:
Group 1 Racing and Tony Carroll have many years experience of buying value for money bloodstock, primarily at Doncaster Bloodstock Sales and Tattersalls in Newmarket. Among the Club's successful purchases:
Infeb (by private sale, £3000 - won 2 races immediately, placed several times)
King William (Doncaster, 8,000 guineas - won 12 races)
Dark Society (Tattersalls, 3000 guineas - won 4 races to-date)
Be Wise Girl (Doncaster, 4000 guineas - won 3 races to-date, now a broodmare)
Linpac West (Doncaster, 50000 guineas - numerous wins and 3rd in Group 3 Castrol St. Simon Stakes.)
Lordship (IRE) (Tattersalls Oct 2006, 8400 guineas - progressive 5-Y-O winner of 4 races and placed 9 times and £19,275 prize money to=date)
Gouranga (Tattersalls Oct 2006, 6000 guineas - a most progressive 6-Y-O mare, winner of 2 hurdle races NH season 2008/9 and placed 6 times and £11,902 prize money)
Robbmaa (FR) (Tattersalls Oct 2007, 10,000 guineas - a fair 4th over hurdles at Stratford 8/08. Watch this space in 2009!)
October/November 2010. Come and join us at the H-I-T auction sale for the next acquisition.
This experience should be invaluable to anyone investing in racehorses at this level and is available free of charge in a
partnership purchase made through the Group 1 Racing Club, as you would expect with a society the purposes of which are not for private gain.
