I have been wanting to get into Thoroughbred racing for many years. I have looked at several different angels and think that a partnership may be best for me. I don’t have a ton of money to lose and I know that more often than not, those involved in racing lose money, but I have put it off for years and don’t want to regret not giving it a try 10-20 years down the road. I have looked into some of the race horse partnerships that are available and wondered if I would be better off trying to find my own partners and use a bloodstock agent to help purchase a 2 yr old in training and find our own trainer. I know there are several reputable partnerships available but most of them that I have looked into, the owners that buy into the partnership have very little say in the direction of the horse. Anyone with knowledge/experience in this area, I would appreciate input. Would I be better off going with an already established partnership or try to bring a group of people together myself?
Have one thing to say about partnerships.
Be very, very careful about what their plans are for retirement. Look for proof of responsible rehoming. My guy from a partnership whose horses disappeared so I stepped up ahead of time to the trainer offering to take him when retired. Reason being we’d hear: “Oh, they’re at Finger Lakes TB Adoption Program” said the managing partner - which I watched regularly and never saw other partnership horses listed…
My guy was a break-even horse for those who stayed w/ him. Was at Belmont for most of the year, so not inexpensive - $4000/month - but he won enough to cover his costs. I was lucky enough to buy into him when I became interested watching him run as a 3yo. He ran until 7.
Later horses not so lucky. My guy still running when my SO and other family members bought into two horses with this same partnership. One disappeared, and another claimed in his final race, after being switched to questionable trainer - a race in which he broke down and was euthanized later in the week. We were lied to about that - managing partner played dumb so I made the calls and determined it was so.
Even their best winning stakes horse eventually disappeared after he was claimed back - as he was given to well meaning partners, who really didn’t know anything about appropriate placement. Horse went from riding barn to riding barn to a backyard owner who fell on troubled times and someone took him “temporarily”. When another partner called to check, they found the horse gone and “temporary” barn owner was known for shipping to Canada.
Oh, and another thing? Make sure you have signed agreements. Our managing partner sent ours to be signed, but they never signed themselves. And it was also later determined they didn’t pay their bills. And he still presents himself as a viable option with all kinds of skills he doesn’t really have. Not a horseman whatsoever. Mostly a gambler with an advanced degree. :rolleyes:
Will also say it looks easier than it is. It is not for the faint hearted. And no, you cannot know enough to second guess a trainer by watching years of racing. So get a good one and trust their decisions - and in addition to the up-front costs of purchasing, have a stash set aside for retirement - easily $10,000 - and possibly up front costs when something doesn’t go right in early training.
Perhaps the best advice I learned that was valid is they, and others I eventually met with greater skills, did use a testing company at sales like EQB.
Go to a sale and watch, and pick out a few that pique your interests and follow them to see where they land, how they do.
But - don’t assume years of attending with your friends, and doing better than they do picking horses - means you are ready to take it on yourself. Sure there are some who have, and do, but their stories of success are truly the exception than the rule. And you don’t hear the constant sad tales and outcomes of those who are the rule.
Leave it to good horsemen/women.
PS - There are a LOT of legal implications when putting together a partnership - including trading regulations - no interstate marketing, etc.
You will be MUCH better off going with an established partnership than trying to organize something on your own. There’s a steep learning curve and racing is expensive-- you do not want to be stuck holding the bill by yourself.
For me, lots of good information and things to think about that I wouldn’t have even thought of if I was looking at a partnership.
Think I’ll personally stick to watching LaurieB’s and their horses 
I agree with Texarkana, and with the caveats raised by CVPeg.
I am involved in a new partnership that was formed last year. We currently have three 2 year olds, and 4 yearlings. Two of our 2 year olds are actively racing, and the third one is close to her debut. As CVPeg said, it is definitely not for the faint of heart. We have ALREADY had very high highs (our first horse to race broke his maiden on debut at Belmont, and then hit the board in a graded stakes race at Saratoga), and some low lows. That said, I am enjoying it very much, and constantly daydream about what may come next.
The most important thing, to me, is to find people that you trust and respect, and then let them do their thing. Our racing manager is an incredible horseman, and is doing an amazing job with this, his first venture. It doesn’t hurt that we have a top flight trainer as well. I am a life-long horse person, but am totally comfortable with the two of them making all the decisions. To me, communication is key, and our manager is always accessible to us with any questions we have or information we may need. I totally understand the need for there to be only one voice communicating with the trainer, and think that is the only way to make it work, frankly.
The management that goes into it is very detailed and time consuming - some other things you will have to coordinate and handle if you do it on your own and act as the manager are:
- setting up the partnership or corporate entity that will own the horses
- keeping the books, paying the bills, billing the partners, collecting money from the partners, preparing and paying the taxes and sending K-1s to the partners
- deciding whether to insure horses or not, or whether to leave it up to each individual partner
- communicating with the partners about any and all developments with the horse(s)
- social media and other PR concerns - if you have a very successful horse, who will be the one to speak to the racing press when they want to talk to the owner? Will there be a social media presence for the partnership? Will you control that all on your own?
- choosing a trainer, and deciding when and if a horse needs to be moved from one trainer to another (sometimes at a trainer’s suggestion)
- arranging for lay ups, freshening, etc. when/if your horse needs time away from the track for injury, a break, etc.
- race day arrangements - partner receptions at or before/after the races, seating for the partners, visits to the trainer’s barn for the partners, winner’s circle photos (hopefully) and agreements about what will happen with any trophies won
- retirement considerations (as mentioned by CVPeg) and also agreements about what will happen with a successful horse - fielding private offers on an active, successful horse (who will negotiate, who will decide if you sell, and how much?), what happens with horses with residual value for breeding? Will they be sold? Privately? At auction? Who decides?
- who decides if a horse can be run for a tag? You? Or do all the partners have to agree?
I am sure I am missing many things, but these are some of the things that come to mind.
Good luck, whatever you decide!
Thanks CVPeg, Nelson, and Texarkana for the responses. I love this site. Great responses for my questions. I don’t remember if the agreement for using this forum will allow to suggest reputable partnerships. I have one that I am considering, but I don’t want to ask about them if not allowed to mention certain groups on here. If we are allowed, can any of you suggest a good established partnership?
I would rather form my own group, but being over it all is a bit scary with my low level of inside knowledge in the sport. Probably best if I begin with an established partnership.
