Learn something new every day
More Info... by email
The idea of buying a racehorse is exhilarating, but can often seem like a rather tricky prospect. There are many factors to be considered, such as what horse to buy, how much to pay for it, who to train it, and most importantly, what type of ownership to assume. Any prospective buyer should take the time to consider their options and choose the type that's right for them.
The first type of ownership to consider is Sole Ownership. This type of ownership means that you alone own the horse, any profits are yours to keep, and any costs are yours to cover. All decisions regarding the horse will be yours to make, including the name. This type of ownership is best for individuals who like to keep control of their investments and are willing to put a lot of time and energy into managing the details of racehorse ownership.
The second type of racehorse ownership is Co-Ownership, which is essentially any type of racehorse ownership other than sole ownership. There are 4 basic types of co-ownership:
Company Ownership - a company owns one or more horses and appoints a Registered Agent to manage them. The companies shareholders are co-owners of the horse.
Leasing - This is a fairly flexible option and ideal for investors who are hesitant about owning a racehorse. A lease can be made for a designated period of time - as little as a single race, or for the entire racing career of the horse.
Joint Ownership - can consist of up to 12 individuals. Each of the owners has a say in the management of the horse, and all expenses and profits are usually shared evenly.
Racing Partnership - can consist of up to 20 individuals, but at least two partners must be registered owners. There are 3 types of partnerships to consider:
If you're not sure yet if you want to own a racehorse, then you might consider joining a racing club. These usually require that you lease an ownership interest and pay a fee to register with the club, but you are not required to own a racehorse. This allows prospective buyers to become more familiar with the horses, racing procedures, and general atmosphere of the horse racing industry before committing to spend a large amount of money or assuming the responsibility of racehorse ownership.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!