Blinkers On sells a percentage interest in each thoroughbred. The minimum buy into a horse is five percent. The initial investment covers the purchase price of the horse and all pro rata expenses from the date the horse was purchased until the beginning of the current quarter. It also covers the pro rata share of estimated expenses for the current quarter. These expenses cover training, veterinarian supplies and fees, vanning, blacksmith, legal fees, tax preparation, mortality insurance, and general liability insurance. Partners are billed quarterly (in advance) thereafter, and estimates and actual expenses are reconciled on a detailed statement. Quarterly costs will vary depending on if the horse is training at the track or resting on the farm. Unanticipated veterinary costs can also increase quarterly costs. Quarterly costs, assuming the horse is in training at the track, are estimated at $10,000 to $12,000, or $500 to $600 per quarter for a five percent interest. Blinkers On receives five percent of all purses earned, in order to cover management costs, and if the horse is sold at a profit, Blinkers On will receive ten percent of the profit. No other management fees will ever be charged, and there are no mark-ups on expenses.
There are multiple ways to earn a return on your investment in addition to the thrill of participating at the highest level of racing. The first way is through purse earnings. The chart below* shows the typical distributions. Owners of a horse earning a purse will receive a disbursement check within 10 business days. The second way is through the revenues earned if the horse is sold. The horse may be sold for racing or breeding. For instance, if a mare has been successful on the track, having won a stakes race or, even better, a graded stakes race, her value will increase dramatically as a breeding prospect and may be sold by the partnership. Horse racing can be expensive, and you may not recover all the money you have invested. You should not invest solely to earn a profit, because there are no guarantees of financial success. Having said that, with risk there can be enormous rewards. Blinkers On is dedicated to maximizing our partners' chances of success.