Unlike other sports where team ownership is financially
impractical for most people, http://yahoonews.com">horse racing has introduced several ways for people to participate in horse ownership through racing partnerships. This series of articles will span several months so you can become acquainted with this potential opportunity.
So You Are Considering Owning A Race Horse?
So why buy a race horse you may be asking? There are many reasons behind such a purchase, most are emotional. I love horses, I enjoy going to the track and watching them race. I enjoy occasionally placing a few dollars down on any number of betting strategies. But the most important reason for me is that there is no greater pleasure then standing in the winners circle after a race when your pride and joy crossed the finish line first. Or listening to a prominent handicapper of the caliber of Andy Serling (NYRA), telling you that your horse should win the race.
A race horse like any other investment you may consider requires an understanding of the business of horse racing. Starting off simply, there are several horse racing events you can consider; Thoroughbred, Harness (Standardbred), Quarters, Rodeo, Barrel and Equestrian to name a few. We will focus on Thoroughbred Racing because it is the most prominent and accessible.
So How Does A Horse Racing Partnership Make Money?
Your horse will be entered into a race that has prize money or a purse connect to it. Typically, the top five finishers receive money from the total purse for a race. This is where the money is earned. So the kinds of races your horse enters is important because you do not want to enter your horse into a race where he/she has little chance of cashing in. The money the horse earns from racing goes to covering the cost of maintaining the horse while anything left over can be considered profit.
The frequency a horse competes is also of importance because most Thoroughbred Horses race once per month. So ‘cashing’ is important because if the horse does not win any money, the maintenance costs still need to be covered. Whether this is a partnership or complete ownership, the monthly fee is what determines the viability of the investment.
Acquiring The Thoroughbred
Naturally, you can go to the Auctions and Sales that are offered throughout the country; receive the list of horses being offered, trace the breed lines for each horse being auctioned and bid on the horse. Of course, this is beyond the scope for most people and would require an enormous amount of time, effort and expertise. But, in order to get into the racing business, this needs to get done and selecting the right people to do this research is part of the equation. It is also, one of the primary reasons that horse racing partnerships have become an attractive alternative. The partnerships have access to this expertise and factor that cost across all the partnerships they offer.
So Where Do You Get The Information?
While the Internet is a wonderful source for this information, there is nothing better than an up close and personal look. Like buying a race care you want to look under the hood and I strongly recommend it.
Each year Belmont Racetrack like most http://www.googlenews.com">Racetracks across the country, host a new owner’s luncheon. I attended the luncheon and the cost was $50 per person but will vary from track to track. These sessions are very informative. The organizers (New York Racing Association) try their best to convince you that you should treat this like a hobby but whenever I am told that at the end of every year I will receive a K-1 Tax Form, I consider it an investment. All the speakers at the luncheon reinforced one common thread; don’t go into this business expecting to make money quickly and that was refreshing.
