Types of Ownership
One of the great things about racehorse ownership is that there are different types of options available depending on budget and the level of involvement you are looking for.
Individual ownership is exactly that. The horse has only one owner who covers all costs, makes all the decisions and gets to enjoy all the rewards. This type of ownership, obviously, involves the highest individual cost, but also means you call the shots.
A partnership is the most common form of ownership. It provides the partners with many advantages, such as the sharing of costs - and the fun. Partnerships are limited to between two and ten people. They can be formed between anyone - family, friends, work mates, sports teams, whoever.
In most cases it requires one enthusiastic senior partner to liaise directly with the trainer. It"s that person"s role to make sure all the partners are kept up to speed on what"s happening with the horse. When there are more than four partners, under the Rules of Racing, one person must be appointed as the Racing Manager.
Syndicates are another common form of multiple person-ownership. The minimum number of owners is five, but there is no maximum number of members of a syndicate. Syndicates and Partnerships have many similarities although syndicates are registered differently, and operate under a different set of rules defined in the Rules of Racing.
Syndicates must appoint an official Syndicate Manager who is then authorised to control the syndicate. The Syndicate Manager is responsible for communication between the syndicate members and the trainer, and accounting functions. Their role is pivotal to the enjoyment that the syndicate members derive from being involved.
Company Ownership is also a possibility in New Zealand. New Zealand Thoroughbred Racing must approve the company for racing horses. Essentially shareholders in the company are the owners of the asset, in this case the horse or horses.
Leasing - an alternative to ownership
In New Zealand you do not have to purchase a horse to enjoy the fun of ownership. Many first-time entrants into the industry choose to lease rather than buy a horse.
Leasing provides the opportunity for people to race a horse without having to get the capital investment to purchase the horse to begin with.
Essentially the horse belongs to the lessee (person or partnership or syndicate) for racing purposes. The lessee is responsible for the costs associated with the care and racing of the horse and collects the rewards from racing.
Leases are subject to the registration of a formal lease agreement that is held by New Zealand Thoroughbred Racing. The terms of a lease vary from lease to lease.
Example of an actual lease
A right of purchase can be included on a lease and it is common for the lesser to be entitled to a percentage of prize money won.
This was the situation with New Zealand champion Sunline (NZ). Sunline was leased to Trevor Mckee, Thayne Green, and Helen Lusty from her breeders, with a right of purchase up until the end of her four-year-old season. Well before this time Sunline had shown she was very good, and the right of purchase was exercised. If Sunline hadn"t proven herself to be a star, her breeders may have had their mare returned knowing that she"d had a shot on the track and that they hadn"t had to meet any of these costs.
For further inquiries about horse ownership contact Daniel Nakhle on 0274 85 85 85