Investors got to be a part of the excitement of owning a winner, but the prize money for that race wasn't a big payoff for investors. Performance bonuses to the original owners and expenses got the bulk of that upfront cash, even as the horse gained value in stud fees.
Risks could turn into rewards if investment in racehorses generates enthusiasm in the sport, which has seen a sharp decline in popularity over the last 20 years. Barr, who sponsored the Horseracing Integrity and Safety Act, which was signed into law last year, said he hopes that investment interest combined with a drug safety program and standards of competition "can strengthen the sport's future for generations to come.
Skip Navigation. Key Points. Platforms allow investors to own a small share of a Thoroughbred. Delays in the SEC registration process make it challenging to price horses that are actively racing. Investors can get perks with their shares that help generate interest in the sport.
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Related Articles. Article Summary. Method 1. Create a purchase and upkeep budget. Look over your finances and consider how much you are willing to reasonably spend. Then, add into that budget an amount for yearly care and training. Be a solo owner if you want more control. This is where you buy a single horse outright with your own funds.
This is a nice option for owners looking to purchase an entry-level horse in order to get to know the art of ownership. It is often the ownership approach of owners who also double as horse trainers. Purchase through a syndicate if you want less risk. This is a type of ownership where multiple people divide the costs, and the rights, to one or more horses. Most syndicates operate under a very specific set of guidelines, so it is important that you really understand these terms before agreeing to anything.
This is where you use a horse to promote a particular company or brand. Talk with your tax advisor. Many horse owners choose to treat their purchase as the groundwork of a limited-liability company. This gives them a chance to then structure their taxes around profits and losses. Meet with your tax advisor and discuss how this purchase could affect your overall tax profile and come up with a strategy prior to buying.
Method 2. Work with a bloodstock agent. This is a person who will guide you through the purchase process by talking with you about what you want in a horse. They will then seek out suitable horses that fit your needs and help you to make the final purchase.
Working with an agent is an especially good option for someone relatively new to horse ownership. Or, look for contact information via industry magazines or websites. Identify a target purchase age. The majority of sellers go with yearlings, otherwise known as one-year-old horses.
They are generally cheaper to buy and still have a great deal of room to grow. However, this can also mean that your investment is even more of a gamble. We can all agree, however, the expense and potential dismay are far outweighed by the exhilarating feel of the racing buzz and life around these amazing creatures. For many years, horse racing has been considered the sport of kings outside the reach of ordinary mortals.
There are various options open to racing fans who dream of watching their own horse galloping down the home straight. The typical purchase price of a racehorse can vary hugely from several thousands of pounds to millions. Of course, the purchase is only the start of your investment. Annual costs for training, horse insurance, registration, and race entry and transport all soon add up.
But how are these costs made up? The ROA has a breakdown of these levels. Members of the ROA can obtain discounts on these registration fees. Again, training fees will vary from trainer to trainer and between those training for the flat and those training for jumps. These include fees for farriers, vets, physios, dentists, gallop fees, clipping and wormer supplements. Protecting racehorses and all their equine friends from any injury or damage is a big responsibility.
Part of your duty as an owner is to suitably protect them by finding adequate cover for their particular needs.
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