Horse Racing Syndicates are seen to be the future of the sport, offering racing fans to enjoy the thrill of racehorse ownership for a fraction of the price of what it costs to own a horse outright. Being part of a syndicate gives you the opportunity to visit your horse at the stables, receive owners’ badges to see them race, as well as receive a percentage of any prize money won.
This article will delve into how a horse racing syndicate works, the advantages and disadvantages of joining a syndicate, as well as factors to consider before purchasing a share in a syndicate horse.
Joining the Racing Club Syndicate is simple! Here are some of the things you should know before joining:
- Asides from purchasing a share in your horse, there are no further financial or time commitments required for the duration of the syndicate term.
- Shares in our horses start from just £45, with varying prices all the way up to £5000 per share, offering a multitude of different options for you to choose from.
- Your share price covers all costs, including training and care of your horse, for the full duration of the syndicate term.
- You have various options at the end of the syndicate term – either renew for the next term, change to a different horse or if you don’t feel it’s right for you, you can also leave the syndicate.
How Does A Racing Syndicate Work?
Racing Syndicates are a cost-effective way of getting into racehorse ownership, allowing racing fans to get a taste of what it’s like to be an owner of a horse. At Racing Club, shares start from just £45, with no hidden costs – you won’t have any extra costs for the duration of the syndicate term. The price you pay when buying a share covers all the running and training costs, including veterinary fees, entry fees and syndicate management fees. In this section, we outline the structure of a horse racing syndicate, as well as some of the risks and considerations you should factor in if you’re looking at horse racing syndicates.
Structure And Operation
Owning a racehorse can be incredibly expensive, but thanks to racehorse syndicates, you can now get involved with racehorse ownership for a fraction of the cost. Here, we break down the structure of a racing syndicate, and what their respective roles involve.
A racehorse syndicate is managed by a Syndicator, who will have a Syndicate Manager that will be in charge of organising the running of the syndicate and making all the ultimate decisions on the syndicates behalf.
The trainer will decide when and where the horses race, seeing as they are the ones who are working with the horses daily. They will keep the syndicate regularly updated on plans for each individual horse in the syndicate.
Syndicate Members are the people who buy a share in the racehorse and become part of the syndicate. In return for owning a share, you will usually receive a percentage of prizes earned over the horse’s career, plus any additional benefits offered by your syndicate.
Risks And Considerations
Horse Racing Syndicates do come with some risks attached to them. In horse racing, there is no guarantee the horses will run well, or will run at all for that matter. It’s an unpredictable sport, and unfortunately, some horses suffer lengthy injuries that prevent them from racing for some time.
Buying a share in a syndicate horse will not guarantee financial gains either. Horse racing ownership should be considered a hobby, and not an investment. Although some racehorses go on to have successful racing careers, the majority do not and buying a share in a racehorse should be seen as entertainment only.
There are risk management steps you can take, such as doing your research into which horse to invest in. Also, you should only be willing to invest what you can afford and remember that horse race ownership is not an investment. You can also insure your share in a horse, but this doesn’t tend to be something offered by syndicates – you can find out more about insurance and liability policies on our Frequently Asked Questions page.
Advantages And Disadvantages Of Being In A Racehorse Syndicate
Advantages
- Become a part owner in a horse for a fraction of the price it costs to be a sole owner of a horse.
- Receive all the perks of being a racehorse owner, including owners badges, stable visits and a share of prize money. You’ll also receive regular updates on your horse, so you feel like an owner, despite only paying a fraction of the cost of the horse.
- With Racing Club, you also receive an exclusive perk of entering ballots to join us for hospitality at major sporting/music events at the O2 Arena (London), Wembley Stadium, Southampton FC and Newbury Racecourse.
Disadvantages
- There is no guarantee of owners badges and stable visits with most horse racing syndicates. Most syndicates tend to be micro shares, so you may need to enter a ballot to be in with a chance of owners badges when the horse runs etc.
- There is a chance your horse will not run during the syndicate term, with injuries or other factors a possibility to consider.
- Not every racehorse is going to be a superstar. There’s a chance your horse might fail to win any prize money, hence why we recommend only buying a share in a horse racing syndicate for entertainment, and not as an investment.
Benefits Of Racing Horse Syndicates
Buying into a racing horse syndicate can bring more perks than just ownership of the horse. These benefits tend to be standard across race horse syndicates, and you can expect most, if not all, of the following:
- Events — the racing syndicate will alert you of events your horse is involved with, particularly upcoming races. You may also receive discounts on tickets to these events.
- Jockey and trainer updates — you’ll receive regular updates on the status of your horse, its health and training.
- Stable visits — your horse racing syndicate will arrange for you to visit the stable and meet your horse regularly.
- Share of prize money — as an owner, you’ll benefit when your horse wins races and events. You may also profit if it’s used for breeding.
- Owners badge ballot — In a smaller syndicate, you may be afforded one of these anyway, but in larger syndicates, you’ll take turns to hold the owner’s badge. This badge grants you access to the racecourse VIP areas for horse owners.
If becoming a syndicate member appeals to you then check out our horses page and pick the syndicate the fits you best.
Conclusion
In conclusion, there are plenty of factors to consider before joining a horse racing syndicate. You need to consider whether the advantages outweigh the disadvantages, as well as try to balance the passion for the sport with an understanding of financial commitments.
If you’d like to find out more information on Racing Club, including the benefits of joining our syndicate, contact us.
