The thoroughbred industry is a fast-paced, exciting and sometimes financially rewarding experience.  Known and referred to as the ‘Sport of Kings’, thoroughbred ownership is often regarded as a sport where ownership is reserved for only the richest of the rich.  This is due in large part to the amount of capital needed to purchase a thoroughbred and financially support the thoroughbred’s maintenance, training and racing career.  However, a Team Stallion Racing Corp. partnership opens ownership possibilities to a wide range of individuals; from casual fans of the sport to high-risk/high-yield investors.

A Team Stallion Racing partnership offers syndicated shares of thoroughbred ownership.  This enables Team Stallion members to own part a thoroughbred [fractional ownership]; reducing the amount of capital needed to ‘get in the game’ and eliminates the large capital needed to purchase a thoroughbred outright.  In addition, the monthly expenditures related to the maintenance and training of the thoroughbred will be reduced pro-rata by the percentage of fractional ownership a member maintains in the thoroughbred. 

Quite simply, members can enjoy all of the fun, benefits and perks of thoroughbred ownership at a fraction of the cost.

The necessary capital required to ‘get-in’ varies from partnership to partnership and is dependant upon the cost of acquiring the thoroughbred. Team Stallion Racing Corp. offers ownership opportunities with initial investments that range from $5,000 to over $100,000.

This initial investment is used to purchase syndicated shares in a particular thoroughbred. Going forward, maintenance and training expenses will be billed pro-rata; based upon the ownership percentage of the thoroughbred.

For Example

Team Stallion Racing Corp. purchases a young colt sired by Smarty Jones and opens the colt for partnership opportunities. The young colt is appraised and valued at $100,000. Team Stallion Racing Corp. syndicates the ownership of this colt and offers ten shares for sale at $10,000 per share. In turn, every share purchased by a client purchases 10% of the colt.
Mr. and Mrs. Gordon decide to purchase one share of the colt at a cost of $10,000; thereby granting them a 10% ownership interest in the colt.

Going forward, Mr. and Mrs. Gordon will pay 10% of the maintenance and training expenses of the thoroughbred and will receive 10% of the purse money earned by the thoroughbred. 

For Example

The Gordon family has enjoyed their thoroughbred investment before he has even raced. They have had fun visiting the stable to watch Smarty Pants [named after his dad, Smarty Jones] eat carrots and pose for pictures with their family. Mr. Gordon has arrived at the track some early Saturday mornings to watch his investment workout on the track alongside his trainer.

For the month of April, Smarty Pants has incurred maintenance and training expenses totaling $3,585; broken down as follows: $3,000 for board and training, $300 for veterinary care, $135 for blacksmith services, $100 for insurance and $50 of miscellaneous expenses. Therefore, the Gordon’s have incurred expenses of $358.50, which is 10% of the total expenditures. It is now early May and Smarty Pants is entered in a race at Belmont Park.

The Gordon’s arrive at the race track for the much anticipated contest. Smarty Pants races competitively and finishes an exciting third in a race offering a purse of $41,000 which is to be divided as follows: 60% to the winner, 20% to the second place finisher, 10% to third, 5% to fourth, 2% to fifth; with the remaining horses dividing the 2% remainder.

Therefore, Smarty Pants has earned $4,100 in purse money, of which $410 is earned by the Gordon family. Smarty Pants’ third place finish has him ‘paying his own way’; as the purse money earned will pay for his monthly expenses. The Gordon family hopes that Smarty Pants will eventually make the winner’s circle for an even larger payday.

While the above examples are all glory, it is no secret that investing in a thoroughbred is an extremely risky venture. Although a great deal of money can be earned in the industry, a great deal can been lost. Thoroughbred investments should be carefully considered prior to making any commitment, and the funds used for such an investment should be completely discretionary funds.