If you love horse racing and want to get involved in some capacity without having to buy a hugely expensive racehorse (or if you’re too tall to become a jockey), horse syndication is perhaps the next best thing. In essence, horse syndication is related to the buying and selling of shares related to a specific racehorse. There’s a lot more to it, though, so in this article we take a look at what is involved in relation to this share ownership and what the responsibilities of a share owner are.
Horse syndication and horse shares
If you’re interested in getting more involved in horse racing, finding horse shares for sale will help you have part-ownership of a horse. When it comes to owning these shares in a syndicate, the syndicator works to find an appropriate horse, its owners and then arranges the admin, such as paperwork and transfer of ownership. Due to the differences between syndicates and partnerships, the Australian Securities and Investments Commission oversees and governs all horse syndicates to ensure that platforms offering shares in horses abide by the strict regulations in place. What are these platforms then, you might ask? Online syndicate platforms are services that allow prospective horse investors to browse through horse database to find what is currently for sale. This information can then be used to contact syndicators or to simply register any interest in a specific horse that is available on the website. In these instances, it’s important that you opt for a syndicate platform that only offers horses offered by Australian registered Syndicators or authorised representatives to ensure validity.
Syndicates versus partnerships
Although they might sound similar on paper, there are differences between partnerships and syndicates when it comes to horse ownership. Those involved in a partnership will register a share in a horse under their own name/s, with the first person evident in the registration being assigned the role of manager, meaning they must take charge of the horse-related administration. A syndicate, on the other hand, is comprised of up to 20 people registered under a syndicate name (rather than their own names), with the manager of the syndicate response for the same duties as the manager in a partnership. Because the price of a thoroughbred racehorse can range from a few thousand dollars to over a million dollars, the initial share price can similarly vary. The price itself is made up of a few elements that dictate this price, and include things like the initial purchase price, animal veterinary inspections, venue transport and housing, fees related to any training needs and even things like advertising and promotional material.
Looking to get into horse ownership?
If you’ve long been a huge fan of horses but the steep price of ownership always scared you off, investing in horse shares is a much better way of going about it. If you’re a bit unsure of where to go from here, by looking through the syndicate platforms online you can get a much better idea of the asking price of these shares and what the best point of entry may be. Then you’ll have a real reason to get passionate at the track next time you drop by!