Investing in a horse racing syndicate makes the barrier of entry into the world of horse racing far less daunting. These partnerships like Little Red Feather Racing, do most of the heavy lifting while you, the investor, may sit back and enjoy the ride. Inevitably however, there will be mistakes made along the way as you find out which partnership is right for you.
Listed below are the top seven complaints we hear from investors who may have joined the wrong partnership.
1. Not My Management Style
If you’ve been reading our blog, you must know by now that every single horse racing syndicate is different, especially when it comes to the management of the racehorses. Some partnerships play the “cover our ass” game by placing horses in races they may not belong in simply because the syndication price was so high. Other partnerships may be too quick to “give up” on your investment and risk losing everything to a claim right off the bat. It’s important to take a look at the style of the Managing Partner in these cases and find out a) how much experience they have and b) what “type” of manager they are. Make sure you ask for referrals from other partners before joining one syndicate over another and make sure you have a good feeling about the Managing Partner.
2. I Thought I Would Have More Control
Janet Jackson has nothing on you. Unfortunately however, if you are only buying a small percentage of the racehorse, you probably will not receive any amount of control. In fact, you wouldn’t want any of the fractional owners making decisions on your behalf, would you? Instead, get to know the Managing Partner of the partnership and constantly ask questions about why decisions are being made. Before you sign up, make sure the Managing Partner is willing to take the time to answer your calls, texts, emails, etc. and find out how much of a “pulse” they have on their own partners.
3. My Horse Was Not Very Good
Many of you are going to have this complaint. I hate using this line – I really do – but, “It’s the nature of the game.” There is an old expression in racing that goes, “nobody sets out to purchase a low-level claiming horse”. Even some of the most expensive horse purchases ever either couldn’t run or were injured and never made it to the races. These equine athletes are living breathing animals and all we can do is give them the best care possible in order to try and bring out their excellence on the racetrack. It just doesn’t always work out… no matter which syndicate you choose.
4. I Found Hidden Management Costs
This issue is on you. Every “legitimate” racing partnership will have a partnership agreement for you to sign upon purchasing your horse. READ IT. If you don’t feel like reading it, give it to a lawyer to read or, at the very least, ask the Managing Partner what, if any, Management fees will be a) billed on a monthly basis, b) taken out of purse earnings and c) paid at the liquidation event (sale) of your horse. If, during the racing career of the horse, you notice some “funny business” going on, don’t wait until the end of the partnership to make note of it. Confront the Managing Partner immediately with your issue and make sure you can back up your claims.
5. I Never Knew What Was Going On
We’ve said it before and we’ll say it again, how much fun is it to own a horse if you don’t know when the horse is breezing or running? Even as a fractional owner, you deserve to know exactly what’s going on with your horse. It should never come as a shock to you that your horse has been entered in a race and if it is… you choose the wrong racing partnership.
6. They Didn’t Want Me Around
Once again, regardless of what percentage of the horse you purchase… you are an owner and should be treated that way. Invitations to the barn and to morning workouts should be expected and the racing partnership should be more than happy to make race-day accommodations for your and your family and friends. This being said, every syndicate is different and has a variety of personalities that come along for the ride. If you are uncomfortable with the Managing Partner or, probably more importantly, the other partners, it’s time to find a partnership that better suits your personality.
7. There Were Too Many People In The Winners’ Circle
Look, if you are buying a 5% share in a thoroughbred, it means there may be as 19 other investors who have also purchased 5% shares, right? If everyone shows up to the track with their friends and families… it can get a little crowded. We get it. But isn’t that what horse racing is all about? A bunch of people from various walks of life at with one common rooting interest going absolutely bonkers when their horse crosses the finish line in front? We say YES!
It is impossible to please everyone all of the time. We get it. So should you, the investor. That being said, there are things you should know before deciding which racing partnership to spend your money on.
If you are interested in finding out more about joining a horse racing partnership, download our e-Book as soon as possible.