Frequently Asked Questions
What are the costs involved?
Racehorse ownership can be more affordable than you realize. You may be unaware but it is possible to own a 10 percent share in a well credentialled racehorse with one of Australia's leading stables for less than $85 a week. To help make it easier to understand we have broken down the ongoing expenses for horses when they are both two and three years of age and over.
TWO-YEAR-OLD*
* These expenses are assuming the horse is in work for six months and spelling for six months.
|
Expenses |
100% |
10% |
5% |
|
Training Fees (1) |
20,466 |
2,047 |
1,024 |
|
Spelling (2) |
5,346 |
535 |
268 |
|
Veterinary (3) |
1,600 |
160 |
80 |
|
Nominations (4) |
1,000 |
100 |
50 |
|
Management Fee (5) |
5,940 |
594 |
594 |
|
Other Fees (6) |
2,600 |
260 |
130 |
|
Total |
36,952 |
3,696 |
2,146 |
(1) Training fees are charged at a daily rate of $113.70 (inc GST) and include track and pool fees.
(2) Spelling fees are charged at a daily rate of $29.70 (inc GST).
(3) Veterinary fees will fluctuate depending on the well being of the horse.
(4) Nominations - will vary, but will cover trial and race nominations. The cost will be higher if the horse is entered in any group or listed races.
(5) Management fees - standard rate of $49.50 per shareholder per month. This fee covers administration of the horse and management tasks as well as ongoing costs for supplying information to shareholders and for decision making processes among shareholders which will occur from time to time. Administration of this kind will ensure that owners will receive only one centralized bill per month that outlines all actual costs from suppliers.
(6) Other costs include farriers, chiropractors, dental work, transport, physiotherapist
THREE-YEAR-OLDS AND OVER*
* Assuming the horse is in work eight months and spelling for four months.
|
Expenses |
100% |
10% |
5% |
|
Training fees (1) |
27,288 |
2,729 |
1,365 |
|
Spelling (2) |
3,564 |
356 |
178 |
|
Veterinary (3) |
2,000 |
200 |
100 |
|
Nominations (4) |
1,200 |
120 |
60 |
|
Management fee (5) |
5,940 |
594 |
594 |
|
Other fees |
3,000 |
300 |
150 |
|
Total |
42,992 |
4,299 |
2,447 |
(1) Training fees are charged at a daily rate of $113.70 (inc GST) and include track and pool fees.
(2) Spelling fees are charged at a daily rate of $29.70 (inc GST).
(3) Veterinary fees will fluctuate depending on the well being of the horse.
(4) Nominations - will vary, but will cover trial and race nominations. The cost will be higher if the horse is entered in any group or listed races.
(5) Management fees - standard rate of $49.50 per shareholder per month. This fee covers administration of the horse and management tasks as well as ongoing costs for supplying information to shareholders and for decision making processes among shareholders which will occur from time to time. Administration of this kind will ensure that owners will receive only one centralized bill per month that outlines all actual costs from suppliers.
We have mentioned the cost per year is approximately $35,000 per horse, so depending on the ownership percentage you plan to purchase, your ongoing costs will be reflective of the percentage ownership by this amount.
Are there any risks involved?
Horses are animals, and hence there are always risks involved with racehorse ownership. Horses can get injured easily, which can mean the end of their racing career, sometimes before it even gets underway.
Horses do not come with any guarantees unfortunately, and this relates to their soundness and their ability! The best Champion Thoroughbreds can do is to try and mitigate the risks by utilising the best facilities, the best processes, and give the horses every opportunity to be safe, happy, and a chance to prove their abilities on the track.
If a horse is injured it can take between 3 – 12 months for them to recover, if they are going to recover from an injury.
Insurance of horses will only ever cover mortality, so the exposure for investors is if the horse is injured and unable to race, in which case we would attempt to sell the horse for what we can get, and distribute the proceeds to shareholders.
If a horse is slow or injured, the value of the horse reduces dramatically from when it was purchased, so it is common for horses to be valued at figures down to 5% of original value should this be the case.
Many colts are gelded to ensure the best racetrack results, obviously this is done after serious contemplation of their worth and career prospects.
What is the progression from purchase for a horse?
Normally a horse once purchased as a yearling will have a rest in a paddock for several months after its sales experience. From here it will be broken in, this is where it learns to have a bridle on its head, a bit in its mouth, and a saddle on its back (eventually with a rider). It is also taught about barriers and how to not be afraid of them. This is a very important stage in the horses development as it will determine often, the attitude the horse will take in later life.
After this step, the horse will have earned itself another break of up to 3 months. It may have had a week in the stable after the breaking in process, just to give it a look around and get used to the stable life routine.
When the horse is ready it will commence “pre training” which is essentially some fitness work outside of the stable environment. This can take a month or so, and then it will be ready for the racing stable. For a horse to reach a fitness level where it can be ready to race there would normally be about 10 weeks training involved.
Horses then compete in one or two barrier trials before they actually start their racing career. A barrier trial is a pretend race with other horses, which are useful for fitness and education.
Once a horse is ready to race, it could have anywhere between one and seven or so races in a preparation before going for another spell, which again would be for a period of between 1 – 3 months.
This pattern of racing, training, and spelling will continue during the horses career until it is retired, when it will normally be sold off.
How will I know what is happening with my horse?
Owners will receive updated information via email, phone, website, and fax, depending on what is favoured by the shareholder.
The kinds of information you would receive would include trainers comments on trackwork, expectations and raceday feedback (before and after the race), nomination details for races, as well as career planning information.
Whenever a decision is required by the shareholders in relation to the horse, either a meeting is convened, or each person will be contacted to discuss the issue at hand.
Champion Thoroughbreds staff are always on hand to answer enquiries as well.