Natalie Voss’ article is thought provoking. With the world economy in the dumps though it is hard for most to consider a lifestyle change.
http://www.paulickreport.com/news/ray-s-paddock/lifestyle-marketing-may-best-way-attract-new-owners/
Is this just another version of “A Sucker Born Every Day” or Barry’s version of the truth? It’s very hard to turn a profit in racing.
[QUOTE=Palm Beach;8893706]
Is this just another version of “A Sucker Born Every Day” or Barry’s version of the truth? It’s very hard to turn a profit in racing.[/QUOTE]
The article is about a change in lifestyle. Must agree if you are not currently in a lifestyle of the rich and famous, owning a racehorse will be a sucker punch to your wallet.
You will admit the article is thought provoking. Got you thinking in a synical sort of way. Barry Irwin does provoke people.
Over here we’d have a better chance if more owners and agents were interested in the kind of ownership I’m in–we own a fraction of the horses as a partnership, working with one majority owner, and people within the partnership buy into horses as they please. I own a piece of three–an unraced two-year-old, a five-year-old allowance horse, and a four-year-old stakes horse. On the plus side, my quarterly payment are bordering on inconsequential-Q4 was only three figures this time because we had a huge entry fee to allow for on the four-year-old. For the most part purses have kept costs at $0 this year. The down side is, obviously, the payout’s not as big, paperwork is complex (someone has to run the LLC part), and of course, little/no voice in how the horses are managed. But then again, most of us are simply race fans and bettors who got into this for fun, and really aren’t people who should be making huge calls. It gives us a stake in the game without the level of risk or investment that necessitates being wealthy to start.
Historically, horseracing has been considered a sport for the wealthy. The industry has done absolutely nothing to change that perception. The TV media presents the sport as if it were a reality series. NBC puts on the TC series as it were an extravagant fashion show that has racing during clothing and hat exhibits. How does the average Joe or Josie relate to this? They go to a football or baseball game, of course.
Barry Irwin’s suggestion that horse ownership maybe a great lifestyle step is laughable. At most sports fans get an hour or so each week during a season to make an emotional connection to a team or player, but in horse racing you are lucky if you get ten minutes every six months to bond or get enthused.
Look at the current COTH thread about the trainers not communicating with the owners. Everyone made a big deal about the Dogwood partnerships and how Cot Campbell inspired ownership. Read between the lines, please. The fact is that big bucks is required beginning to end to entertain any sort of real enjoyment through ownership.
Simply an aspiration for lifestyle improvement is not going to attract new owners. If you live with dirt under your fingernails your better lifestyle investment is get a manicure and throw in a pedicure as an extravagance.
I think that if horse racing partnerships were advertised to the bigger masses as both a good way to get into ownership and be active socially, it would work. Anna Seitz has a few of those types of ownership groups with All About the Girls (which is kind of worldwide now with horses in Australia too) and Santé Cellars Racing Club (https://www.americasbestracing.net/lifestyle/2015-sant%C3%A9-cellars-racing-club-pairing-health-and-horses).
There are some cheap partnerships out there, people just aren’t overly aware of them. I’m in one that’s just $70 a month. Obviously at that level, the horse probably isn’t going to be stakes quality but it’s a good way to get your feet wet in ownership to see if you like it.
[QUOTE=gotpaints;8895624]
I think that if horse racing partnerships were advertised to the bigger masses as both a good way to get into ownership and be active socially, it would work. Anna Seitz has a few of those types of ownership groups with All About the Girls (which is kind of worldwide now with horses in Australia too) and Santé Cellars Racing Club (https://www.americasbestracing.net/lifestyle/2015-sant%C3%A9-cellars-racing-club-pairing-health-and-horses).
There are some cheap partnerships out there, people just aren’t overly aware of them. I’m in one that’s just $70 a month. Obviously at that level, the horse probably isn’t going to be stakes quality but it’s a good way to get your feet wet in ownership to see if you like it.[/QUOTE]
I’m paying about that PER QUARTER, not per month and we have a graded stakes winner (GIII winner, G2 placed. And in California, no less.) You never know. It makes it a LOT easier to be in for a tiny fraction, both financially and in terms of nerves. If I were one of the majority owners I’d have a perforated ulcer by now.
At one point I looked into the partnerships gotpaints mentions. While they look fun on the outside, when looking at the actual cost they struck me as pricy and not as a great ownership value. I’m trying to think of a nice way to say it because I like the ideas. My reaction was that most owners could get a lot more mileage for that kind of money by joining some other social club and keeping the racehorse ownership part separate. I really like the idea, though, forming a club of like minded racehorse owners and organizing some horse related social activities on the side.
[QUOTE=danceronice;8896640]
I’m paying about that PER QUARTER, not per month and we have a graded stakes winner (GIII winner, G2 placed. And in California, no less.) You never know. It makes it a LOT easier to be in for a tiny fraction, both financially and in terms of nerves. If I were one of the majority owners I’d have a perforated ulcer by now.[/QUOTE]
You’re paying $70 per quarter? I’m curious as to what partnership you own through because $70 was pretty cheap when I was shopping around.
Danceronice. Are you with LRF by chance? I have a friend of mine that invests with them and seems to be doing well.
[QUOTE=gotpaints;8896728]
You’re paying $70 per quarter? I’m curious as to what partnership you own through because $70 was pretty cheap when I was shopping around.[/QUOTE]
$70 per quarter, you must have a lot of partners. lol
The neat thing about owning a horse in partnership besides making it financially easy. Even if a person only owns 1-100th it still “their” horse. Completely changes how a person reacts when the horses are coming down the stretch.
Most of the partnerships I looked at were either very expensive or simply didn’t offer much to the owners other than social interaction. If I just want entertainment, I’ll buy my own tickets, etc.
[QUOTE=BeeHoney;8896679]
At one point I looked into the partnerships gotpaints mentions. While they look fun on the outside, when looking at the actual cost they struck me as pricy and not as a great ownership value. I’m trying to think of a nice way to say it because I like the ideas. My reaction was that most owners could get a lot more mileage for that kind of money by joining some other social club and keeping the racehorse ownership part separate. I really like the idea, though, forming a club of like minded racehorse owners and organizing some horse related social activities on the side.[/QUOTE]
Yes, that’s exactly it…I was looking at what they offered and it just didn’t add up to me. It’s not THAT expensive to buy tickets to events, and as far as racehorse ownership, if you are splitting it with a bunch of other people that shouldn’t be that expensive either. I’d rather set up my own “lifestyle” experience.
But, it’s a great idea. I think a lot of people would be interested in joining a racing club where they could partner on horses in a guided but financially transparent manner and also enjoy some social benefits.
[QUOTE=SnicklefritzG;8897159]
Most of the partnerships I looked at were either very expensive or simply didn’t offer much to the owners other than social interaction. If I just want entertainment, I’ll buy my own tickets, etc.[/QUOTE]
One of my requirements when getting into a partnership was that I had to be able to come to the barn whenever (morning-wise) I wanted. Like you said, it’s easy to buy tickets to the races (the good thing about racing is that it is so cheap) but I wanted to actually get to know the horse. I spend a lot of time at the track as part of my job but I will say there is a totally different feeling in the morning and the afternoon when a horse you own a part of is racing or even just working.
[QUOTE=SnicklefritzG;8897159]
Most of the partnerships I looked at were either very expensive or simply didn’t offer much to the owners other than social interaction. If I just want entertainment, I’ll buy my own tickets, etc.[/QUOTE]
I think you hit the nail on the head. Whether it owning a share of a racehorse, season tickets to pro or college sports, or investing in any business, along with entertainment, the social aspect is a primary interest driver. Opportunities for racehorse ownership abound but the problem is that unless ownership is strictly local socializing and developing personal relationships are practically zero. You are better off being a railbird making conversation with other railbirds. Who knows you might get a tip that moves you into a better lifestyle, even if only for a day.
[QUOTE=gumtree;8897146]
$70 per quarter, you must have a lot of partners. lol
The neat thing about owning a horse in partnership besides making it financially easy. Even if a person only owns 1-100th it still “their” horse. Completely changes how a person reacts when the horses are coming down the stretch.[/QUOTE]
We own 14% of one horse, for example. I think there are about 15-20 of us in the LLC. So far, I’ve either gotten a small check or the costs for the next quarter covered, except this time (even at 14% of the one horse our share of his next entry fee was a little shy of $15,000, but that’s out of $100,000 to get in the gate, so our share is not that much. I still only paid very low 3 figures after the purses were taken out. 5th place or better and our group makes a profit, so I’ll take those odds. And it’s just fun.)
Really, small percent or not, the feeling is totally different. Watching on TV is bad enough. The one I was able to be at in person (they’re all Cali-based) I thought I was going to pass out. But I now have more than OTTB win pictures on my wall!
