There are different ways through which you can own a horse, one of the ways is outright ownership, where you buy 100% of a horse on your own means and outright.
The beauty of this is you don’t have to share with anyone but the catch here is that you have to part with the whole sum and horse ownership can be pretty expensive.
Alternatively there is the popular option of syndication, one of the great ways through which people share risks and rewards. Here you get to race a level of horse that you probably could not have owned outright, especially when you are new in the game.
With syndication, there is fun in meeting new people especially those whom you share a common interest and passion. Syndicates are normally formed by a minimum of five people and will usually have a syndicate manager to oversee the business side of things.
With a racing syndicate, you need not be skilled or even knowledgeable in horse racing or equine management, the fact that there is a syndicate manager makes it easy for everyone.
Horse Racing Syndicates make owning a horse such an affordable venture, a group comes together to buy a race horse and become owners, often in little to no time, and can easily be setup on a professional level or with a group of family, friends or colleagues.
The first thing is to work out is the number of people whom you want to join the syndicate, and then embark on setting it up. Syndicate fees vary depending on the quality of the horse, number of shares and training or vet fees.
For example at the time of writing Highclere Racing having syndicates starting from £6.950 plus VAT. But on the flip side with Ontoawinner you can get involved from as little as £250 for a 2.5% cut of the syndicate.
The number of members should be reasonable, it should not be too high such that managing the syndicate becomes an issue, at the same time the number should be large enough to provide the fun that is needed or desired in horse racing.
The number of shares held by each member also indicates their responsibilities in the group. The cost of running the syndicate is shared in terms of the number of shares that each hold. Any prize winnings will usually be shared out on similar basis. It is important to seek expert advice when drawing up some of the instruments which will govern the syndicate.
This is intended only as a basic guide and overview but should you join a syndicate?
I guess it’s horses for courses – if you love getting your fix of Racing then the opportunity to get involved for a few hundred pounds may be worthwhile. You’ll get to see the horse in training, visit the stables and experience the thrill of watching your own horse racing – and maybe just one day find yourself in the winner’s circle.
If you’ve ever been a syndicate member I’d love to hear your experiences by adding a comment below – enjoyable, worthwhile, profitable, and would you do it again?