How it all works
| So just how does a Horseplayers Racing Club partnership work? |
To begin with, we want our partners to be happy. Happy partners are loyal partners and that’s good for racing and for HRC. We understand that as part-owners in a race horse, having frequent and comprehensive communication about your horses is a top priority. It’s ours, too.
Another priority for us is providing good value in the partner’s horse racing investment. We do this by carefully choosing our racing and breeding stock. We try to take advantage of every opportunity possible (state-bred incentives, racing series or bonus incentives, upside “silent” racing potential, residual value through bloodlines, etc.). These attributes are taken into consideration during the partnership development process. Here’s the basics of how our program works.
In most of our groups, we package two or more horses together to spread the risk and increase the racing action. Depending on whether the formed partnership is targeting horses of racing age, yearlings or breeding stock, we may purchase privately, through auction or via claiming.
With claiming groups, we collect monies up front via the partnership offering and work with our trainer to select horses that offer upside racing potential and often residual breeding value. We target claiming levels where the horses will have room to increase their value and compete for higher purses. When we form a partnership, we do not mark up the horses like many of our competitors do. If we buy or claim a horse for $10,000, that’s the price the partnerships pays.
In most cases, we include a few months pre-paid training expenses in the initial share price and deposit the funds in the partnership account so that we have money to pay for the first months training with the potential of earning purse monies before partners are subject to monthly assessment fees. In many of our partnership groups, we’ve made money right from the start and partners have never written a check!
If we run low in partnership account funds, we’ll begin collecting monthly assessment fees to cover the partnership’s actual cost of board, training, veterinarian, transportation, shoeing, racing expenses, etc.
At HRC, we charge a minimal monthly management fee to cover the cost of running our business and a commission on horse’s earnings and increased sale value, which is our financial incentive, and your assurance, that we’re managing the partnership in a value and results oriented fashion. In a nutshell, if the partnership does well and the partners are happy, so are we. Partnerships are disbanded when the group’s final horse is sold and all remaining funds are distributed to partners accordingly.
Many of our competitors load a commission upfront on the initial purchase price, charge their partners high monthly management fees or set up pre-loaded (no out-of-pocket expenses ever) risk-share agreements with their partners and trainers. Often times, these agreements may inappropriately place incentives on the managing partner or trainer that are detrimental to the overall good of the horse or the partner’s share value.
Before new owners join a partnership, we require a phone or in-person meeting to discuss the partnership, review the highlights of the program, answer all questions and review the Partnership Agreement, which outlines all the partnership details.
Partners receive frequent e-mail updates regarding their horses. Updates include information about training, workouts, race entries, race results and summaries, financial reports, etc. Partner feedback is invited and occasionally requested through quick surveys on various decision points. Partners are welcome to contact us by phone, too.
We set up several barn and farm visits during the course of the year. At these events, HRC partners can visit their horses, feed them carrots, meet and talk with trainers, riders, breeders, farm and stallion managers, etc. When our horses are racing, we facilitate seating and passes for partners. Partners are invited in to the paddock to watch the horse get saddled, meet fellow owners, chat with our trainer and shake hands with our jockey. Visits to the winner’s circle are the crowning moment of every horse owner’s experience.
Race horse ownership and race day festivities are exciting social events with many long term friendships being formed amongst partners. At the end of the racing season, we hold year-end parties where HRC partners come together to enjoy food, fun, friendship and prizes.