Racing Costs?

[Glimmerglass]

[QUOTE=LaurieB;4661977]
So just to say, a partnership can be a great way to get your feet wet but read everything carefully before signing. They, like full ownership, can be filled with pitfalls.[/QUOTE]

Agreed without reservation! Like any “investment” you have to do your homework. Speak with a few other members and get honest feedback about the ins and outs - including costs.

Cheap, in terms of owner upfront investment, doesn’t mean it will be profitable. I know a member of a partnership and I asked him about the profit potential - he said ‘what profits?’. Even with a few wins and hitting the board in another few efforts the net of it was not unlike owning boat: it costs money regardless if its in the water, turned on, or in storage

Sad but true - only a fool would intentionally get into horse racing to actually make money. That doesn’t mean you can’t still have fun if you approach it more like a hobby.

There are also some partnerships for steeplechase horses, but no less risky, an example here: Half-brother to Good Night Shirt. However the purses for 'chasing are far less and generally to watch the horse race over a season will require travel

[summerly]

partnerships

I would not jump into a “partnership” either! Most horses are bought and pieces are sold off at a much higher value then worth, or syndicated. There is usually a racing manager involved that makes all decisions so your input or opinions or say is squat. Most, not all have a clause that all profits go directly back into the expenses of the syndicate, toward purchasing and what not. While the initial investment may be smaller if you like, there is no control over situations or decision making for the most part! If you want to be more hands on, and sounds like you do, and are somewhat educated I would not do the syndicate thing EVER

[naturalequus]

I second what NancyM has said. I am not entirely experienced at the track however I did spend two summer seasons as a groom. I would highly recommend, if you could, spending time on the backside as a groom or other. You figure out in time who the good trainers are, who to stay away from, what to look for in horses, what to expect as far as costs go and how each trainer works, etc. I cannot recommend partnerships because you likely would have very little say, however I admit to my overall lack of knowledge in that aspect. Having spent some time on the track, here is how I would do it, personally (this is actually what we are considering doing in a few years, after hopefully purchasing our place this summer):

Purchase a promising, but economical yearling. You’ve got the place to keep and feed it, and it would be more economical than buying a 2yo. On the other hand, it could pay to purchase a 2yo who is showing promise as well. What the seller says though and what word is on the backside - what the riders and grooms think of the horse based on their experiences, could differ though (hence the leg up if you’ve got contacts on the backside). If you can do your own ‘starting’ at home, you reduce time the horse is on the track when it first starts out, and you eliminate needing a trainer to start your horse prior to its arrival on the track (everyone does it differently). Vet costs should not be high, but that depends on the trainer - what one trainer deems ‘necessary’ might not be what is necessary in your books (the trainer I worked for was very easy on the vet and only used the vet/others as required, when necessary, and based upon the owner’s input when the owner knew what they were doing). You definitely have an advantage having your own skillset and facilities, but it is still going to be costly. The only way to truly assess how costly, IMO, is to spend time on the backside and get to know some of the trainers. If you are absolutely set on a stakes or allowance horse though, you are looking at investing a lot of money. Once again, befriending people on the backside, who are studying the races, will help you figure out who’s hot and up-and-coming, and who isn’t. Don’t bank on a horse being a stakes or allowance horse, and do not bank on making any money. Just hope to break even if you do it smartly, and with the right sources/resources. I would highly recommend just starting out small. Make friends!!!

[Las_Olas]

My parents owned horses when I was growing up. We had some graded stakes winners, but I was a child and never knew the ins-and-outs of the racing game. As an adult, when I wanted to get back into it, the best advice I received was to find a trainer I liked, watch a few $15k level horses, decide on one and claim it. Learn the game that way and decide if you like it first. If it’s a good claim, you will have one ready to run, better chance that the horse can pay for itself and you can generally get out fairly easy and with less damage if it’s not for you.

[naturalequus]

I had an entire chapter written up but really, I second what NancyM and others of like have said.

Get to know the people on the backside - the word on the backside is invaluable!!! Getting to know the people on the backside will lend you insight that will save you money and heartache - which trainers to work with, which horses are up-and-coming, etc.

[Linny]

I met a man who was involved in a high end partnership. A horse he had a share in hit the board in 2 triple crown races. He was a serious G1 horse and was sold as a stud prospect after an injury. He said he “broke even” on the horse.
Whatever option you choose, be sure to ask upfront about any and all fees they COULD be incurred. Everything from insurance to vets to sales commissions. (I know someone who was charged a commission on a sale that took place when the partnership dropped the horse down to a low level claiming race with the intent of losing him.) Find out what the markup is on the horse so that you know if the partnership has a stake in the horse or not. Let’s face it when the managing partner flies in to see the horse run in a stakes, he’s doing it on your dime, and you are paying for your own ticket as well.

[DickHertz]

What Summerly said. The markups in the partnership gig is perfectly legal and I don’t have a problem with the ethics of them, but I also feel the average partner gets screwed. I’ve talked to many owners who started there and the basic sentiment is the same “It was ok, but I’m ready to do it on my own…”. Some of the least reputable partnerships will milk owners when their horses are laid up to. Asking $100 per month doesn’t seem like a lot, but when you have only 3.3% of the horse, that ends up being $3,300 per month for layup ! I’ve seen it with my own eyes.

[hastyrebeljane]

Another way to start if you want to buy your own youngsters and bring them along is to see if the tracks you like have a regional or state bred program. You can often buy a nice horse from a local breeder for a little less than your sale type. You also have the added benefit of payback breeder awards if you pick the right state {and the right horse}Follow all the careful rules and suggestions that others have already given out…this is sometimes the way to have a horse thats not claiming stock too since sometimes your statebred races arent as tough.Make sure its a state that gives paybacks for being the OWNER of a statebred. Good Luck

[Glimmerglass]

Slightly off topic perhaps but as cited Dogwood Stables in Aiken, SC the Cot Campbell partnership (and really granddaddy of the the concept) now has a steeplechase runner with Jonathan Sheppard - “Prince Rahy” an 8-yr turf runner for Dogwood switching careers. He will remain under the Dogwood banner and owned by a partnership

Btw I wouldn’t assume every partnership will “rob you blind” with nickle and dime fees. It just depends on the structure and you should always ask about everything up front.

Agreed that you won’t be doing much steering when it come to decision making - although owning 2%, for example, shouldn’t necessarily give one the wheelhouse of control. It is still a way to get ones feet wet in learning the ins and outs plus gain access to the track.

Each partnership is different but I have seen some where they are very democratic, if you will, in asking the partners what they want to do for a next race - and provide options. I doubt however any partnership - or even if you own the horse outright - will enjoy an owner second guessing every bit of training as well as care. The history of horse racing is loooooooong with owners who mettled in the affairs of their trainer and quickly soured the relationship. (Perfect example: Elizabeth Arden and Tom Smith of Seabiscuit fame)

Some on this thread have said to go in as an owner outright and make connections at the track. That’s all well and good but if you aren’t in racing today getting to “know” folks isn’t as easy as suggested. I for example might know some people, own an eventing horse, love horse racing and all that but that doesn’t gain me access to the backside of Arlington Park - nor will it get my phone calls to Bill Mott returned either.

[kimball1]

Thank you for all the good advice (especially Halo & Nancy M). We looked at Dogwood, and I got all their info, and it looked like a TON of fun. We live in the Northeast and love Saratoga, and they always have a big group there. I actually had a check out…But in the end, if it is my money, and my horse, I have to make the call. 99% of the time I figure I am paying for expert advice and I should follow that advice and do whatever the trainer says, but there is always that 1% of the time I disagree, and as owner and check writer that needs to be my perogative. I do understand not everything works out as planned. We have had plenty of disappointments in the show horse world, but we always believe hay costs the same whether the horse is first or last, so you mine as well try to be first.