HORSE OWNERSHIP

YOU CAN BE AN OWNER TOO

THE FUN OF OWNERSHIP

At the heart of it all is winning. Whether it’s collecting the winner’s share of a $1 million race or winning a county fair stakes, there are few things to match the thrill of standing in the winner’s circle with family and friends to have your picture taken alongside the horse you purchased and helped develop.

There’s an old adage that says, “The outside of a horse is good for the inside of a man.” Perhaps that sums up why owning a harness horse is such a rewarding experience.

Fractional Ownership

an easy, affordable and low-risk way to get involved with racehorse ownership. As a participant in a fractional group you will own 2 percent of a racehorse for a limited term, generally between five and six months. With a 1-4 percent ownership, you will not have to apply for a state license to own your horse.

Costs

The cost to buy into these groups generally ranges from $300-$500 and there are no additional costs after the purchase price. The trainer of the horse is responsible for all decisions regarding the care and training of the horse, while the program manager is responsible for communicating with the participants and answering questions.

Current Fractional Groups

Fractional owners enjoy the entire behind-the-scenes benefits of traditional owners, such as visiting their horse at the stable and having their photo taken in the winner’s circle when their horse wins. Here is a list of fractional groups currently operating in the US:

  • Dee Hotton Stable: Shares available on aged and young horses from  5% up. Monthly bills available through email. Website, email ,texts and video updates.
  • Dream Catcher RacingOffers shares in multiple horses currently racing at Ohio tracks. Shares available from 1% up. Fixed, flat rate training fee after buy-in. Utilizes website and Facebook updates.
  • First Turn Stable:$250 per share for a horse racing at Hoosier Park (Indiana residents only)
  • Hold The Line Stable: Offers shares of horses racing in the barn of trainer Tim Twaddle at The Meadows from 1% up to 100%. Flat rate monthly billing and weekly update emails.
  • HorsePlay Racing Stable:Fractional ownership opportunity for horses racing in Ohio. Ownership available as low as 1%.
  • LandMark 10:$2,000 per share for horses racing primarily in Ontario. No bills. (Click link to e-mail for more information.)
  • Summer Fling Racing Team:$50-$110 for a share of horses racing at Running Aces in Minnesota. No bills and regular Facebook updates.
  • TheStable.ca:Shares available in 2-year-olds at varying prices. Extensive video updates of all horses in the stable.
  • Winners Circle Racing LLC: Shares available as low as 2.5% for $500 of horses racing at The Meadows and Yonkers Raceway. Monthly invoices summarizing profits or losses, payable by money order, check, PayPal or Venmo.

Individual Ownership

In this case you pay all the bills and take all the risks, but you also reap all the rewards–and the purses your horse wins.

Partnerships

In a partnership, you and your partner(s) share paying the bills and assuming risks–and each takes a cut of the purses. Partnerships can also be “unbalanced,” in which each partner owns a different percentage, and thus pays a different percentage of the expenses and earns a varying cut of the purse. Your trainer, of course, can also be your partner.

Leasing

Horses, like any business asset, can also be leased. In a lease, you (the lessee) will have control of the horse for a fixed period of time–in exchange for a stated percentage of the purses won. During the term of the lease the lessee generally pays all the expenses associated with racing. The benefit is that it’s usually cheaper to lease a horse than pay what might be a high cost of buying one. The U.S. Trotting Association mandates that copies of the lease be registered with the USTA (to divulge true ownership).

Limited Partnership

A growing number of people, especially those with limited amounts to invest, or who fear losing more than what they have budgeted, have invested in limited partnerships. It’s a common investment form: In a limited partnership you put up a fixed amount towards the management of a horse’s racing career. A “general” or “managing” partner makes all the decisions about acquiring a horse, including selecting a trainer, and making stakes payments. You will share proportionately in the purses won, when they exceed expenses, and in a worst-case scenario will not lose more than what you have invested. Such partnerships are widely advertised in trade publications and online.

Corporation

Racing corporations, just as in the business world, are entities that are legally separate from its owners or stockholders. They offer their owners legal and tax advantages not enjoyed by sole owners, partners, lessees, or limited partners, but are heavily regulated.

Limited Liability Company

These are partnership and corporation hybrids, combining features of both. It offers the company members the legal protection afforded to corporations, but frees them of the considerable regulatory hurdles placed before corporations. Get legal and accounting advice! Your legal and tax advisors will be key members of your stable. Your lawyer will you advise about the various ownership forms, and your tax advisor will tell you how racing finances are governed by state and federal tax regulations.

JOIN THE FUN

BECOME A MEMBER OF THE U.S. TROTTING ASSOCIATION

Standardbred owners and harness racing enthusiasts can join the US Trotting Association to get access member benefits and great discounts on data!