Interesting approach to recruiting fans to ownership.
http://www.paulickreport.com/news/the-biz/churchill-downs-racing-club/
Not quite sure how “low risk” figures in as the club does not make any money. D Wayne makes money, though.
I think that sounds like a great idea for someone who just wants to experience what it’s like to have a racehorse in a low cost way.
Canterbury Park has been doing this for several years now. You do a one-time enrollment ($250) and get to follow the horses all year. No additional expenses, free admission to the track, and if they turn a profit you get money back, too.
It has been wildly popular at emerald downs and hastings park as well
There is one based at Woodbine now. The Sport of Queens Racing is the name of it. $200/share. An inexpensive way to experience what the rest of us pay big bucks for. 
I know this might be off the wall, but I wonder if the same club program would work for breeding? Possibly a homebred breed to race club program? Might help to put additional mares in play, particularly in states where industries are struggling.
I wasn’t aware of these other clubs. Cool.
I saw this and thought it was a great idea. Unfortunately, CD is too far from where I live, and I would not be able to get there often enough.
I love your idea of the homebred breed racing program though.
Yes, you don’t win money but you get the thrill of the big lows and big highs that come w/“ownership” esp. when you have a lifestyle or are elderly or disabled and can’t do it for real by yourself. (My best buddy dog, 75lb golden lab just died over Xmas, he lived to 17, which is very unusual but a testimony to the care I gave him, but at my age, it has been hard because I am older women with disability and have a hard time lifting a dog of this size, had to call in the Calvary when he began ailing.) So this type of racing owership would be fun for me, as I am not physically capable of caring for a horse anymore.
I think anything to increase fans and also any kind of horse awareness is a good thing.
I would like to see some of the $$ go to retirement for OT racehorses though.
Shimmy Davis we tried to implement a broodmare Club through the Washington thoroughbred breeders this year. We didn’t get enough interest but plan on trying again.
We had a similar thing, every horse had 1000 shares and every share cost 350-400 SEK, the winnings was distributed at the end of the year. 6-7 horses with 1000 shares each. Many owners bought a share and later also bought a larger share in other horses.
[QUOTE=JohannaStk;8637883]
We had a similar thing, every horse had 1000 shares and every share cost 350-400 SEK, the winnings was distributed at the end of the year. 6-7 horses with 1000 shares each. Many owners bought a share and later also bought a larger share in other horses.[/QUOTE]
What you’re describing is a typical partnership, just syndicated into many small shares. Some partnerships have flat, one-time fees for their shares. In others, the partners pay for shares plus quarterly expenses.
These racing clubs are different from a partnership in the sense that they don’t distribute winnings period. You pay a one time annual fee to participate, nothing more. But you also don’t win anything. Your perks are the ability to experience ownership, make connections, enjoy the races, etc. And I think they “guarantee” you a horse in training for the year (as much as they can), unlike a partnership which immediately dissolves if your horse is claimed or retired from injury. The clubs at Canterbury and Emerald IIRC donate any remaining profit at the end of the year to some sort of racing charity, after all the horsemen are paid of course. I’m not sure about the Churchill one.
I’ve been following the Canterbury club’s blog here and there over the past couple years:
https://canterburyracingclub.com/
I even get swept up in it and consider joining, but then I realize that makes zero sense for me.
Then it appears that a breeding club makes even less sense. How about paddock tailgating?
Tex is right, it’s not low risk, it’s 100% risk - you get nothing in return. It’s designed to make money for the trainer and “syndicate” manager. Take the # “members” x “cost” and all that money is paid up front. So in Churchill’s club, it’s 200 x $500 = $100,000 up front. The manager gets paid, Lucas gets paid, a horse is purchased, money set aside for vet/farrier/expenses/licensing etc. No guarantee the horse will run, and an absolute guarantee that no club members will make any money!!
[QUOTE=Palm Beach;8637941]
Tex is right, it’s not low risk, it’s 100% risk - you get nothing in return. It’s designed to make money for the trainer and “syndicate” manager. Take the # “members” x “cost” and all that money is paid up front. So in Churchill’s club, it’s 200 x $500 = $100,000 up front. The manager gets paid, Lucas gets paid, a horse is purchased, money set aside for vet/farrier/expenses/licensing etc. No guarantee the horse will run, and an absolute guarantee that no club members will make any money!![/QUOTE]
Sports fans pay thousands per ticket in other venues to sit in often hostile environments, sitting in crowd venues, paying exorbitant snack prices, all to spend an hour or two watching some type of ball being depreciated by a bat, club, shoe, hand, or head. This club is definitely in the area of low risk. What do you take home from an NFL game? Heartburn?
The emerald and hastings clubs offer money back. I have not been part of them so I don’t know details but I do know there is opportunity to recoup some money.
With the broodmare Club the plan was to buy two in.foal mares, foal them out and rebreed them. Sell the mares at the annual sale and then the foals would be sold as yearlings. Any profits after expenses were covered would go back to Club members.
[QUOTE=Palm Beach;8637941]
Tex is right, it’s not low risk, it’s 100% risk - you get nothing in return. It’s designed to make money for the trainer and “syndicate” manager. Take the # “members” x “cost” and all that money is paid up front. So in Churchill’s club, it’s 200 x $500 = $100,000 up front. The manager gets paid, Lucas gets paid, a horse is purchased, money set aside for vet/farrier/expenses/licensing etc. No guarantee the horse will run, and an absolute guarantee that no club members will make any money!![/QUOTE]
I think these racing clubs do guarantee a horse will be in training for you and guarantee, as much as they can, that the horse will race. That’s the difference between a “club” and a “syndicate” or “partnership” and what makes these clubs “low risk” for someone new to the sport. In a partnership or syndicate, as you know, if you horse can’t run, you lose the money period. In these clubs, if the horse can’t run, they use the funds in the account to purchase/claim another horse if necessary.
For example, the Canterbury club has a couple horses in training at any given time. There has been times in the past where one has gotten injured or claimed… so then they claim another to run in the club’s name. You “own” all the horses in the club for that season and can visit the horses on the backside (on scheduled club days) and experience the owner perks on race day.
The whole point of these are to introduce folks to the world of Thoroughbred ownership for a reasonable price. They are designed to guarantee folks the experience of owning a racehorse without the risk of flushing your money down the toilet on a lemon or getting taken for a ride by a shark. Canterbury reports that a lot of their club members go on to become actual owners after a season or two in the club, which is good for the sport overall.
The trainers get paid their regular day rates and cut of the purse. As for managing partners getting rich, most of the clubs I’ve read about say they will donate any profit to local racing charities. Of course, there’s wiggle room on the definition of “profit.”
Overall, I think they are great for the sport. Racing is not known for its ease of accessibility to those on the outside. And those willing to help greenhorns frequently don’t have honest intentions. But the clubs are 100% risk from a financial standpoint, because there is nothing to gain expect experience. Churchill is advertising theirs at $500, which I think is an especially steep price for just experience. The clubs at the smaller tracks seem to be much more affordable, but they also aren’t paying the Lukas day rate.
Texarkana: Good points. There is also the “emotional” benefits that sports fans get with being associated with a team or athlete. Most likely, as you say, clubs members will get an opportunity to meet and talk to individuals, like Lukas, who are knowledgeable and naturally enthusiastic about horse racing. They’d be hooked if their horses makes it into the winners circle. Trainers like Lukas are perfect for this task.
I remember taking a friend to the Scarborough Downs track in Portland, ME, many years ago. The guy didn’t have a clue. We collaborated (his money, my wits) on a few winning bets and even now he’s still addicted. One problem though. He has become a “know it all” when it comes to racing, and I can’t stand to be around him anymore. Sounds like the original Chrome connections doesn’t it?
Jennywho: If and when the broodmare club gets up and running, I hope you’ll post a link. I’d be interested to see how it is marketed and managed.
Also, it’s Shammy, not Shimmy. Mrs. Shammy saw that post and every time I walk into the house, she breaks out into a chorus or two of “shimmy shimmy coco pop.” lol. I’m hoping one of us comes down with early onset dementia. It’s only been a few days since your “shimmy” post, and my nerves are shot.
Lol sorry Shammy, I needed a good laugh this morning.
Two of the initial emerald club members went on to purchase Belle Hill (and others) who has since become a multiple stakes winner.
I will update if the broodmare club comes to fruition
[QUOTE=Texarkana;8638324]
I think these racing clubs do guarantee a horse will be in training for you and guarantee, as much as they can, that the horse will race. That’s the difference between a “club” and a “syndicate” or “partnership” and what makes these clubs “low risk” for someone new to the sport. In a partnership or syndicate, as you know, if you horse can’t run, you lose the money period. In these clubs, if the horse can’t run, they use the funds in the account to purchase/claim another horse if necessary.
For example, the Canterbury club has a couple horses in training at any given time. There has been times in the past where one has gotten injured or claimed… so then they claim another to run in the club’s name. You “own” all the horses in the club for that season and can visit the horses on the backside (on scheduled club days) and experience the owner perks on race day.
The whole point of these are to introduce folks to the world of Thoroughbred ownership for a reasonable price. They are designed to guarantee folks the experience of owning a racehorse without the risk of flushing your money down the toilet on a lemon or getting taken for a ride by a shark. Canterbury reports that a lot of their club members go on to become actual owners after a season or two in the club, which is good for the sport overall.
The trainers get paid their regular day rates and cut of the purse. As for managing partners getting rich, most of the clubs I’ve read about say they will donate any profit to local racing charities. Of course, there’s wiggle room on the definition of “profit.”
Overall, I think they are great for the sport. Racing is not known for its ease of accessibility to those on the outside. And those willing to help greenhorns frequently don’t have honest intentions. But the clubs are 100% risk from a financial standpoint, because there is nothing to gain expect experience. Churchill is advertising theirs at $500, which I think is an especially steep price for just experience. The clubs at the smaller tracks seem to be much more affordable, but they also aren’t paying the Lukas day rate.[/QUOTE]
“LOW RISK” means there is little chance you will lose the money you invest. Basic business principle. This is ALL RISK because you put money up and they tell you up front you will NOT make money. Honey, go study business. It’s a club. Not anything low risk.
[QUOTE=Palm Beach;8639377]
“LOW RISK” means there is little chance you will lose the money you invest. Basic business principle. This is ALL RISK because you put money up and they tell you up front you will NOT make money. Honey, go study business. It’s a club. Not anything low risk.[/QUOTE]
I think you’re missing the point. This is not an investment. It’s entertainment.
