Investing in Horse Racing Partnerships

Horse Racing Partnership Expenses

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 $12,000 to $14,000, or $600 to $700 per quarter for a five percent interest.


HORSE RACING PARTNERSHIP COSTS AND FEES

Owning a horse in a partnership means you will be paying additional costs but will be receiving benefits you would not enjoy owning the horse by yourself. These benefits are in addition to the reason most people join the partnership which is lowering the cost of ownership and reducing risk.

Costs

  • Blinkers On horses include a mark-up and the gross margin calculation is based on the size/number of shares purchased
  • Blinkers On collects 8% of the purse earnings
  • Blinkers On collects 10% of the profit if the horse is sold at a profit

Benefits

Management Expertise
Blinkers On provides professional management including bloodstock services for the acquisition of your equine athlete, the selection of a top-quality trainer to give your thoroughbred world class care and an experienced racing manager that will make the critical day to day decisions required to maximize your athlete’s potential.

Billing and Administration
Blinkers On will deliver timely, accurate accounting including accounts payable, invoicing and purse distribution.

Superior Customer Service
Blinkers On will give you straight forward, honest communication regarding your horse’s activities via the Partner Lounge in a password protected area on our website. You will also have direct contact with the managing partner and he will be available via his e-mail and his personal cell phone number, 24/7. Blinkers On will also provide you the full owners experience with insider access to the track, stables and auctions. Finally, if you are like the majority of Blinkers On Partners, we will be having our picture taken in the Winners Circle.

Horse Racing Investment Returns

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 30 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.

Horse Race Purse Distribution*

First Place- 60% of the total purse, Second - 20% of the total purse, Third - 10% of the total purse, Fourth - 6% of the total purse, Fifth - 4% of the total purse. Trainers typically receive ten percent of any purse earnings. Jockeys receive ten percent of a winning purse, five percent of second or third place purses, and a flat fee of $60 to $100 per mount for finishing off the board. *Figures are based on industry standards and vary slightly by track location and purse value. 

Blinkers On receives eight percent of any purse earned to support our staff and offices. This enables us to continue to provide superior investor services.