Need some assistance! I am the designated owner on the official JC papers of my horse. You know, the sheet that has all the lines for signatures. If I want to give half of this horse to someone else, what do you write? Something like “50 percent ownership” and the name of the other person?
Also, when and if the horse runs, we prefer to only put the name of the other person. Is that allowed? In effect, I want to remain a “silent owner”.
Thanks
Call the Jockey Cluh–you’ll get the correct answer immediately!
I’ve called them in the past–they were very nice to deal with…
I called the JC and they said they cannot advise on ownership, or how tracks list owners. They said that is a state issue. They also said that JC papers are not the only “proof of ownership”, and that a bill of sale is the critical piece. Interesting.
I don’t think it matters how the ownership is listed on the back of the foal papers-- don’t you have to do all ownership transfers through the online registry now? I’ve only done it with breeding stock and not horses actively racing. But I know this year at Kentucky Downs was the first year they didn’t even keep foal papers on file in the racing office. You just had to turn them in if your horse was claimed.
When we do partnerships at the track, the form asks for percentage ownership, but it also asks the name of person/persons/stable name that the horse will run under (for program purposes). So, if you want to get paid your share of winnings, you are listed as part-owner, but the horse can race in the other person’s name, or sometimes people just put so & so, and partner.
As for the papers, you will just transfer the ownership into both of your names, on the back.
If you are the “designated owner” on the papers and sell half it really isn’t necessary to add another name on the papers. You should however draw up a Bill of Sale AND a Partnership Agreement. The Partnership Agreement should cover EVERY detail. These details can and should take several pages to cover. Especially if your partner/s is/are not well versed in the highs and low of racing and all of its nuances.
Someone should be named Managing Partner and that is generally the same name on the JC papers. Failure to spell out everything can lead to huge and sometimes costly misunderstandings. A lesson I learned a long time ago.
When it comes to how the Horsemen’s Book Keeper cuts checks to partners every race track is different. Even those in the same state. Each racing jurisdiction can and does have different requirements for who has to obtain an Owner’s license. Some require every partner that owns at least a 5% be licensed some 10%. On the owners license application it will ask what percentage the person owns.
A lot of horses that are owned by multiple owners run in a stable name or partnership name. Generally in this situation the Horseman’s Book Keeper will only issue a check to the managing partner. We do small partnerships, only a couple of partners I know well. I prefer not to have the hassles of all the book keeping and prefer that prize money is paid directly to partners. Saves on tax hassles also.
Some race tracks have a form for partners to fill out and have notarized. Each race track only allows so many name in the ownership line in the program. Our Agreement states partners with the largest percent get listed first. If everyone has the same percentage then the horse runs under out stable name and the added Et Al.
I don’t know of any racetrack, Horseman’s Book Keeper that will deal with issuing 20 5% owners checks. Can’t blame them. This kind of large partnership should be and maybe require to be “formalized” as in an LLC with a designated Managing Partner and the rest are General Partners. Also makes for short work when it comes to tax filings.
This covers a bit more than asked but I figure a lot of people will read this thread so I covered most of the bases. In short call the racing office and ask how purse money is distributed.
Again, I can’t stress enough how important a well written Partnership Agreement is.
Gumtree that is so informative! Thank you! I am going to call Pimlico about an owners license today. Hopefully it doesn’t cost too much. 
Pimlico is closed, call Laurel. FYI owner’s license in MD are yearly so if you aren’t going to race in the next 6 weeks, wait until January.
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