Hello,
I was wondering if there is anyone out there that make owning a racehorse a business.
Any suggestions? Esp racing in the west, Cal, Oregon, Nv. Idaho, Washington.. ect. Any suggestions on rules, getting started, things that you wished you never done?
Karen
Business suggestions for a newbee
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karenkarenn
- Breeder's Cup Winner
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There is information at the TOC website. See link below for Ownership info. Go to home page for additional info.
http://www.toconline.com/ownership/form ... siness.php
http://www.toconline.com/ownership/form ... siness.php
1. Study, study, study before you start spending money.
2. Always buy the best you can afford.
3. Don't get involved with partners unless you know everything about them and have an ironclad contract.
4. Listen to everything the "experts" tell you but don't believe most of it.
5. When your horses are out of your sight and their caretakers tell you everything is fine, check on them frequently anyway.
2. Always buy the best you can afford.
3. Don't get involved with partners unless you know everything about them and have an ironclad contract.
4. Listen to everything the "experts" tell you but don't believe most of it.
5. When your horses are out of your sight and their caretakers tell you everything is fine, check on them frequently anyway.
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nferro9925
- Grade III Winner
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- Joined: Sat Sep 18, 2004 12:59 am
LB wrote:
3. Don't get involved with partners unless you know everything about them and have an ironclad contract.
If your partner is your wife contemplate the divorce Now, rather than wait til its necessary.
(OK just kidding
- Actually my first date with my wife was to watch one of my horses run and the horses has been a blessing for us - but the race busiess will cause all kinds of stresses in a marriage which will also probably also lead to dropping important life priorities and other really bad decisions)
jm
Run the race - the one that's really worth winning.
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karenkarenn
- Breeder's Cup Winner
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HAVE A BUSINESS PLAN,
HAVE THAT PLAN WRITTEN DOWN,
HAVE AGREEMENT WITH YOUR PARTNER(s) AS TO THAT PLAN - This is MOST important if you have a close relationship with that partner (!!!!),
INCLUDE DISSOLUTION/TERMINATION/LIQUIDATION AGREEMENT IN THAT PLAN or ANY PARTNERSHIP AGREEMENT - Especially important if your partner is a life partner - husband or boyfriend - so that the 'parting that is such sweet sorrow' does not end up in bitter resentment!
RE- VISIT THIS PLAN DOCUMENT FREQUENTLY THROUGHOUT YOUR INVESTMENT TO COMPARE HOW YOU're DOING vs. WHAT YOUR PLAN PROJECTED.
OK - I'll stop shouting. Just trying to emphasize how important it is to take the time to put your Goals, projected/estimated costs and means of achieving those goals in writing and then track your costs/income and acheivments/milestones against that Plan/projections. I'd also have a spreadsheet of estimated costs that reflects your Plan. THen I'd update it monthly with your actual incurred costs and any income received so that you can see ahead of time if you're outstripping your investment comfort levels OR hopefully - making enough money that your investment is paying for itsself, even if only in part. Such tracking helps you make important adjustment decisions ahead of time rather than with your back up against some incoming bills you'll have trouble paying. Doing all of this also helps you maintain a diary of your time investment - i.e. phone calls to/from trainer; visits to the track/farm to observe your investment whether for morning works or for a race; trips to meet with vet (s)
Such a diary may, along with copies of any betting tickets when at the track, any programs etc., seminar programs/notes/costs, etc.; publications; books etc. help you at tax time or if audited by IRS.
Ask few people you trust for their general business acumen and/or for their knowlege of the horseracing business - who have no financial interest in this investment you're contemplating - . to look it over and ask you what their 'hard questions' would be about "owning a racehorse" under your Plan. Try to answer those questions by either gathering more data, or: amending your Plan to account for conflicting, lack of data and see how that effects your longterm goal/timeline and/or cost constraints. You may find that there is a decision point in the near offing you hadn't recognized. When seeking advisors to reveiw your Plan - I would not ask your chosen or recommended trainer to do this as they cannot do so and be free of any conflict of interest, ditto any bloodstock agent you are using/contemplating using. Keep your business advisors free of such conflicts - then when you have a Plan/Financial projection you (and any partners) are comfortabel with - challenge any 'involved' advisors/trainers, etc. to help you achieve your goals while staying within the constraints of your Plan. There will likely be trade-offs along the way. Your plan may contemplate spreading the risk by 'owning' more than one racehorse or partnership interests in up to three - but when you look at what's available in the marketplace your trainer or bloodstock advisor recommends a single horse as being far superior and more likely to achieve your goals but it's cost is equal to what you were willing to pay for the three. Now you have a point where you decide whether to stick wtih the Plan in it's strictest sense by spreading the risk among three supposedly lesser individuals or roll the dice by only buying into the one superior horse and having 'all your eggs in the one basket'. Having the Plan doesn't preclude you from having this flexibility but it does help you see when you are at decision points or deviating from the original Plan, i.e. changing the original balance you'd mapped out between risks and potential rewards. Such a decision might also make you decide to look into getting equine insurance for the one superior horse since he/she is now you're sole route to success, something you might have been advised against investing in for the original three horses that were contemplated.
To get you started there is an overall guide to the many sorts of questions, considerations you ought to ask/consider before making such and investment at the TOBA site (Thoroughbred Owners and Breeders of America). It's under the heading "Ownership" and is supported further by annually scheduled Seminars for New Owners and Clinics on subjects such as Conformation and Pedigree, Breeding/Foaling, and other subjects. The "New Ownerspaced distant race tracks throughout the country and one at the Breeders Cup host track (2009 - Santa Anita Park) and culminating with an afternoon/evening at the races. The 2 to 3 day clinics are generally offered at TB Breeding farms in Kentucky though I see that one of this 2009's upcoming seminars will be held elsewhere - either Florida or New York for a change.
Good Luck!
HAVE THAT PLAN WRITTEN DOWN,
HAVE AGREEMENT WITH YOUR PARTNER(s) AS TO THAT PLAN - This is MOST important if you have a close relationship with that partner (!!!!),
INCLUDE DISSOLUTION/TERMINATION/LIQUIDATION AGREEMENT IN THAT PLAN or ANY PARTNERSHIP AGREEMENT - Especially important if your partner is a life partner - husband or boyfriend - so that the 'parting that is such sweet sorrow' does not end up in bitter resentment!
RE- VISIT THIS PLAN DOCUMENT FREQUENTLY THROUGHOUT YOUR INVESTMENT TO COMPARE HOW YOU're DOING vs. WHAT YOUR PLAN PROJECTED.
OK - I'll stop shouting. Just trying to emphasize how important it is to take the time to put your Goals, projected/estimated costs and means of achieving those goals in writing and then track your costs/income and acheivments/milestones against that Plan/projections. I'd also have a spreadsheet of estimated costs that reflects your Plan. THen I'd update it monthly with your actual incurred costs and any income received so that you can see ahead of time if you're outstripping your investment comfort levels OR hopefully - making enough money that your investment is paying for itsself, even if only in part. Such tracking helps you make important adjustment decisions ahead of time rather than with your back up against some incoming bills you'll have trouble paying. Doing all of this also helps you maintain a diary of your time investment - i.e. phone calls to/from trainer; visits to the track/farm to observe your investment whether for morning works or for a race; trips to meet with vet (s)
Such a diary may, along with copies of any betting tickets when at the track, any programs etc., seminar programs/notes/costs, etc.; publications; books etc. help you at tax time or if audited by IRS.
Ask few people you trust for their general business acumen and/or for their knowlege of the horseracing business - who have no financial interest in this investment you're contemplating - . to look it over and ask you what their 'hard questions' would be about "owning a racehorse" under your Plan. Try to answer those questions by either gathering more data, or: amending your Plan to account for conflicting, lack of data and see how that effects your longterm goal/timeline and/or cost constraints. You may find that there is a decision point in the near offing you hadn't recognized. When seeking advisors to reveiw your Plan - I would not ask your chosen or recommended trainer to do this as they cannot do so and be free of any conflict of interest, ditto any bloodstock agent you are using/contemplating using. Keep your business advisors free of such conflicts - then when you have a Plan/Financial projection you (and any partners) are comfortabel with - challenge any 'involved' advisors/trainers, etc. to help you achieve your goals while staying within the constraints of your Plan. There will likely be trade-offs along the way. Your plan may contemplate spreading the risk by 'owning' more than one racehorse or partnership interests in up to three - but when you look at what's available in the marketplace your trainer or bloodstock advisor recommends a single horse as being far superior and more likely to achieve your goals but it's cost is equal to what you were willing to pay for the three. Now you have a point where you decide whether to stick wtih the Plan in it's strictest sense by spreading the risk among three supposedly lesser individuals or roll the dice by only buying into the one superior horse and having 'all your eggs in the one basket'. Having the Plan doesn't preclude you from having this flexibility but it does help you see when you are at decision points or deviating from the original Plan, i.e. changing the original balance you'd mapped out between risks and potential rewards. Such a decision might also make you decide to look into getting equine insurance for the one superior horse since he/she is now you're sole route to success, something you might have been advised against investing in for the original three horses that were contemplated.
To get you started there is an overall guide to the many sorts of questions, considerations you ought to ask/consider before making such and investment at the TOBA site (Thoroughbred Owners and Breeders of America). It's under the heading "Ownership" and is supported further by annually scheduled Seminars for New Owners and Clinics on subjects such as Conformation and Pedigree, Breeding/Foaling, and other subjects. The "New Ownerspaced distant race tracks throughout the country and one at the Breeders Cup host track (2009 - Santa Anita Park) and culminating with an afternoon/evening at the races. The 2 to 3 day clinics are generally offered at TB Breeding farms in Kentucky though I see that one of this 2009's upcoming seminars will be held elsewhere - either Florida or New York for a change.
Good Luck!
karenkarenn wrote:Joltman-
I couldnt' agree with your more. My hubby has it in his head that this horse is going to win its first race, and I keep grinding it into him to not get his hopes up.
Karen
Hi Karen
The optimism and hope is contagious at this phase. I recall it well - downright intoxicating. Ask any of the folks here and they can drown a few cold ones telling you stories of their most disappointing or anguish filled moments. Often these come before that first victory. So, when the horse is laid up, costing you more than when just in training, with little or no possibility of a return to racing in a reasonable time period, it is very sobering and can test the best of relationships. So do be careful - there is a lot that can be lost in this game...
jm
Run the race - the one that's really worth winning.
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KMO_racing
- Allowance Winner
- Posts: 291
- Joined: Wed Jul 23, 2008 3:49 pm
- Location: Suffolk Downs
business
My oldest friend in tis business said this statement to me the day I brought my first horse to him to train.
"This is a cold tough business and if you don't take tough times well you are in the wrong business. He said tough decisions daily make this tough, ex: horse gets injured the right call is put it down, the human call is try to fix the problem. He stated you have to be tough and have compassion too!. He said may tough times for a few good times"
I spoke to him the other day and we talked about that statement He is my oldest and dearest friend in the industry. He spoke the truth...I have cried many times over the years and I have also had many joys in the business. I would do nothing else at all!! The tough tough times are tough but the good times are grand.
Good Luck!!!
"This is a cold tough business and if you don't take tough times well you are in the wrong business. He said tough decisions daily make this tough, ex: horse gets injured the right call is put it down, the human call is try to fix the problem. He stated you have to be tough and have compassion too!. He said may tough times for a few good times"
I spoke to him the other day and we talked about that statement He is my oldest and dearest friend in the industry. He spoke the truth...I have cried many times over the years and I have also had many joys in the business. I would do nothing else at all!! The tough tough times are tough but the good times are grand.
Good Luck!!!
Thanks,
Kathy
Kathy
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karenkarenn
- Breeder's Cup Winner
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