Introduction to Racehorse Syndicate
If you’re stepping into the game of racehorses, there’s something that can really make it easy for you. Racehorse syndication is a service that takes care of all your paperwork and other tedious tasks that are usually not the attraction of this business. The primary job of a syndicate is to get you a horse and take care of all administrative activities. The details of services that racehorse syndicates offer are discussed in the next section. First, you need to know what racehorse syndication is.
Racehorse syndication is basically the division of the ownership of a racehorse between 2 or more than 2 owners. The syndicate chooses the horse and takes care of all the paperwork. The syndicate saves you from the hustle of studying racehorses. It also saves you from other hard work as well. Racehorse syndicates Melbourne are governed by the Australian Securities and Investment Commission (ASIC). There are certain requirements that the syndicate needs to fulfil before getting the license. When you’re searching for syndicate, you must make sure you’re dealing with a licensed syndicate.
Racehorse syndication is different from partnership as in the case of partnership, the names of the partners appear in the register separately and usually the first person is considered to be the administrator. A syndicate is a more professional approach of taking shares in a horse. The partnership is represented by a single name, instead of individual names. The syndicate handles all the paperwork and other administrative tasks.
The services and the charges
The services and the charges offered by the licensed racehorse syndicator vary from syndicator to syndicator. For the initial share price, usually the following aspects are covered;
- Purchase price
- Inspection charges
- Transport charges
- Training fees
- Race nomination charges
- Veterinary consultation
- Marketing charges
Again, the details of the charges vary from syndicator to syndicator. You should discuss the charges before making any deal. As for the management, the policies of syndicators vary. Some syndicators take care of all charges and trainings for the owners. The syndicate would manage the communication with key personnel, organize veteran services for the horse and cater to other needs. These syndicates will charge a monthly fee for the services, excluding the fees of various services for the horse. On the contrary, some syndicates let you pay the bills directly and keep you in the loop. You will be paying for the training fees yourself. The bright side of this mode of management is, you will not be required to pay a monthly fee to the syndicate.
About the Prize Money
The distribution of the prize money is the duty of the racing industry. A standard norm is to pay 10% of the prize to the trainer, 5% to the jockey and the remaining is distributed between the owners. however, this distribution is open for negotiations on unofficial terms. This means, the jockey or the trainer can negotiate their own deal with the owners. Nevertheless, the racing industry will pay in the described manner. The racing industry’s policies regarding distribution of prize money is not subject to the deal between the owner and the jockey/trainer. The racing authorities will be paying the owner after deducting the payment of jockey and the trainer.
Horse racing is a business full of risks. It usually involves a substantial investment and all that money is always in a risk. You are never sure whether the horse will make it to the racetrack or not, whether the training will be successful and whether there will be any injury in any of the races. There are many other uncertainties that revolve around race horsing, such as the health of the horse and its training. This calls for a reliable management of the racehorse, a body that takes care of your horse and make sure your money is put to good use. A horse syndicate provides this service. A knowledgeable and experienced racehorse syndicate would be aware of the qualities that are necessary in a racehorse. An experienced racehorse will also be aware of the training requirements and other details about keeping horse healthy and fit for the race. This is usually the primary reason why horse-owners tend to choose racehorse syndicate. It not only reduces the workload, but also minimises the risks involved in this risky game.