How to Start a Horse Racing Syndicate

From the Quarter Racing Journal

Want the thrill of owning a champion racehorse but don’t want the headache and bills that come with sole ownership? Welcome to the world of group ownership. A syndicate, a partnership – it all equals a way to get into racehorse ownership.

Here are a few best practices for getting started with a Quarter Horse racing partnership:

• Get official. Have good documents and have them well in advance of getting any money. The documents will be your road map and will help explain the way the group will operate to the potential investor. Explain how potential group members can get in and get out of the group.
• Find the best veterinarian you can. If you’re going to the sales to buy horses, get on close terms with a good veterinarian and don’t be afraid to spend the money for X-rays and pre-purchase examinations.
• Know who will train the horse(s). Hire the best trainer that you can find and have a program for the horse. Decide where the horse is going as a 2-year-old, as a 3-year-old and so on.
• Show me the money. Set up a bookkeeping system to track race nomination fees, training fees, veterinary bills and other costs associated with horse. To keep the futurity dreams alive, don’t forget to make those payments on time.
• It’s more than a pact. The day the horse is purchased, each owner in the group has created an obligation. Insurance policies can protect each individual’s investment.
• Communication is key. To keep group members excited, make sure communication is free flowing and everyone is in the know. Group members will stay enthused if they know (and feel like) they’re part of the team.

How to Share Costs Among a Racing Syndicate

Dive deeper into this topic with "Horse Racing Syndicates: How to Share Costs and Own a Racehorse."