Syndicate "the complete racing experience"

Sorry dave, my bad!

The 75/25 lease split is industry standard,but the training fees are high and incedentals are very relevant,vet fees being the worst culprit.Owning a racehorse should never be viewed as a way of making money from your investment because the odds are stacked agaist you,it should be a hobby and to be enjoyed and a lot of fun with your mates and family on a saterday afternoon. Joining a syndicate and leasing a horse is a great way to get involved.

Imust say i rate L. Goosen as a trainer Easy and if your vet bills were less than R5000 over a two and half period he is to be commended.Vet bills are are one of the main reasons that are keeping prospective owners out of the game

Fair comment tangles, plus u are correct about the vet bills.

Tangles,

those figures are 100%, of course that does not include the gelding operations. Over the course of that period we had at least 1 horse with Louis sometimes more than 1 horse (shares in various)

Bart rice charges- r3500 for two year olds exc vat
-r4500 for three year olds exc vat, would be nice of others could let
Us know prices from various stables

Dave, find out if the 25% cut to breeder is for WINS ONLY............... & ALL place money goes to the syndicate ?......... this is quite often the norm, but every deal is structured differently.

Every deal might be structured differently but that does not make this deal a good one. A poor deal is a poor deal however you cut it.

pat Lunn charghes R5200 vat incl.Gavin Smith is R3200 plus VAT.
in my opinion compared to previous lease deals ive had, this deal
does not sound worth it!

Rad has a couple of horses for lease or sale will post pedigree later

This thread is starting to look a little like a debate on the ALL TO COME bet! Is the product ( the lease deal ) fundamentally flawed? Perhaps. But it has been presented in a relatively upfront fashion which allows a prospective owner ( or anyone capable of mastering simple arithmetic ) the opportunity to either accept or reject it.

Perhaps the syndicate 'marketer' needs to revisit the fundamentals again as there are aspects of the offer which are quite heavily stacked against the prospective participant. I say this against the background of having run syndicates in the past with a fair degree of success. I decline to do it any longer only because it involves an awful amount of effort for precious little recognition and absolutely no financial advantage.

Firstly - If my memory serves me correctly syndicate membership is limited to 20 shareholders. So I would tend to divide the exercise by 20 to establish a base cost rather than using 10.

Secondly - Leasing loads the exercise quite heavily against the participant. It tends to work out better to pay 1/20th of a purchase price ( see above ) rather than watch helplessly as your 'child' turns out to actually have ability - all of which will accrue to the owner/breeder after having been funded by yourself! Insofar as fillies are concerned - even modest track performance may retain some of the intrinsic paddock value for later exploitation by the breeder.

Thirdly - Experience taught me that one of the best ways to run a syndicates is as follows : You raise a sum of capital from the mildly interested wannabe members. This acts as a deposit and cements intention from prospective members. If, for example, each member kicks off with R 10,000 then you have a budget of R200,000 to spend on horses. Dependent upon how many you purchase ( typically 2x ) you then do an annual estimate on keep. A simple thumbsuck will suggest that it costs close on R100K all inclusive per annum to keep a horse - so each member commits to 200,000 / 20 / 12 = R 833 pm.

My members always signed stop orders and the money was collected monthly with minimum effort. So for R 10,000 up front and R 833 pm you had a 5% interest in two horses.

Stakes earned were simply accumulated and distributed once a year ( together with any surplus monies collected ) at a get together party where we showed videos of the winning runs ( if any ) and had quite a night out courtesy of syndicate funding.

Clearly if we had owned fillies ( which we did not ) there might have been scope to dispose of them at the end of their careers for a financial return.

One of the major reasons why these exercises get more and more difficult to 'sell' is simply because of the widening gap between cost and potential earnings. So convincing someone to part with R 800+ pm with only a folorn hope of return allied to a fractional interest is not that easy.

Again - as indicated earlier - it involves a lot of work from the nominee in the form of newsletters, reconciling accounts, VAT recoveries, arranging racecourse seating, end of year party etc.

Garrick

that seems like a good way to do it. I would though follow the way they do things over here in the UK. The "buy in" whether leased or along the lines you stipulate MUST be for a predefined period of time. FOr me the "end of a horses career" is a matter of opinion. So there has to be timelines in place to close off the books and start again. This might mean that you end up having to sell a syndicate horse (as part of the syndicate mandate) that you might want to keep but that is the way the cookie crumbles.

Your proposal for me makes perfect sense and i would sign up with R10k right now if i knew that at the end of 12 months, the horses were going on a sale and those proceeds were also going to be divided by all of us. EVEN if the horse turn out to be champions.

Thanks Garrick for bringing some sanity back to the thread, you are also correct about running a syndicate.