About Syndication

THE SYNDICATION of racehorses has become far more commonplace in the past 20 years due to the rising costs of purchasing and racing a horse, particularly in metropolitan areas.

Syndication involves having up to 20 owners in a horse, where people can purchase a percentage share which fits the dollar outlay they are looking to invest. Racing NSW and Racing Victoria allow 10 names in a racebook, so in order to ensure an investors name appears as an owner in the racebook, a 10% share purchase is normally required. It is possible to register a syndicate to own a share, therefore allowing many more owners and friends to be involved and distribute the costs over a larger number of investors, thereby decreasing the cost to entry. The maximum dollar amount of a syndicated horse is currently $250,000.

Racing horses is obviously considered a high risk pastime, and should only be considered as a form of entertainment.

The prospect of profiting from a horse purchase, although definitely possible and potentially highly rewarding, is not the reality for the majority of investors and racehorses. Most people will invest for the fun of owning a racehorse, the social aspects of horse ownership and being involved in the career and growth of their own horse from a young age through to its retirement and beyond.

The costs of maintaining a horse are generally $45,000 per annum for a horse in training with a metropolitan trainer. The costs are not evenly proportioned throughout the year though as it depends on where the horse is during the year and what it is doing. For example, while it is in training, the costs are higher than if it was resting in a paddock.

It is easy to get involved in owning a share in a racehorse and having a company such as Champion Thoroughbreds to help ensure there is professional management of the horse makes the whole experience fun, exciting, and hopefully rewarding!