Frequently Asked Questions
So, I want to buy a share in a racehorse. How does it work?
Once you have contacted us in regards to purchasing a share, an information pack will be express mailed to you containing all the requested information and a product disclosure statement. This information is approved by Racing NSW before it is offered to potential clients. If you choose to purchase the share after reviewing the terms and conditions, simply send back the completed forms contained in the pack. If you require more information or are a first time buyer and need assistance, just contact our office and one of our helpful staff members will assist you.
As an owner, what am I entitled to?
You own the horse! You are entitled to have input on the naming of your horse, its movements, schedules, etc. Owner privileges include race day entry, member’s tickets, mounting yard access, promotional gear and open days. Owners have control during and after its racing career. Such decisions will be made as a group along with the racing manager and trainer. No decision on your horse is made without the input of each and every owner.
How much does it cost to maintain a share in a racehorse?
It cost approximately $50,000 per year to maintain a horse.
If you own a 5% share, the following may apply:
- $50,000 / 52 weeks = Approximately $960 per week
- $960 / 20 shares = An average of $48 per week per 5% share
We advise that you budget $60 per week for your 5% share over the course of the year. You will receive bills in arrears directly from your trainer or speller. When spelling a horse, it usually cost about $1000 per month which means your cost as a 5% share holder will be $50 for the month. When your horse is in training it cost about $4,000 per month depending on how many race starts it may have, how many visits from the vet, etc. This equates to about $200 per 5% share for the month. We endeavour to manage your horse in the most cost effective way without compromising quality. Note that the above average is dependent on your horses movements and GST is applicable to certain cost and services. Should you be interested in smaller or larger shares than the 5% average quoted, simply use the provided formula and average as a guide.
So upkeep works out to be about $50 per week. What does this cover?
This covers spelling, training, pre-training, getting your horse to the races, trial and race nominations, open days and vet visits (although, very occasionally certain vet procedures may incur a small additional fee). It works out to be $50 – $60 per week on average over the course of a year. However, it does not include nomination fees for Group and some Interstate races, and we certainly hope this is a problem we encounter! A group race means considerable prize money and indicates that your horse has ability. All is discussed with the owners and the trainer prior to such decisions being made.
How are my expenses billed to me?
Many syndicators or managers may charge you a set monthly fee. Others choose to bill you after calculating or assuming your horses monthly costs and may incorporate extra charges, however Elite Thoroughbreds have all suppliers bill you directly. Why? Because this honest approach ensures that you know exactly what you are paying for by receiving itemised accounts from all suppliers. No inflated costs, no hidden charges… just detailed, direct billing.
What is included in the initial share price? How do I know what I am paying for?
Cost such as breaking in & education, vet inspections, insurance and Inglis or Magic Millions race nominations are calculated into the advertised price. The product disclosure statement provided will outline all related expenses in detail. Such start-up costs are included in the initial share price in order to make the ownership process a much easier one.
Is Elite Thoroughbreds licensed to sell racehorse shares?
Yes. Elite Thoroughbreds Pty Ltd is a lead regulator approved syndicator and promoter of Racing NSW. There are operators who utilize similar services in order to run a syndicate promotion, however such operators are NOT lead regulator approved, and are NOT bound by the rules and regulations that lead regulator approved operators are. Elite Thoroughbreds Pty Ltd is aligned with ASIC (Australian Securities Investments Commission), and is a holder of an AFSL (Australian Financial Services License) number 334 694.
As a racehorse owner, what correspondence do I receive regarding my horse?
Owners receive email updates at a minimum of once per week. These emails at times include photos, video footage and audio reports on your horse and are designed to keep you informed as to its progress and movements. When trialling or racing, field nominations, pre race and post race comments on your horse are forwarded along with any other relevant information. We also hold stable open days, paddock visits and track work sessions which allow our owners to be as involved as possible. We have also recently introduced detailed race assessments which are sent to owners prior to race day. Providing such assessments to owners insures detailed information on all runners in the race and gives owners an outsiders opinion on the field and possible race scenarios.
What does the Elite Thoroughbreds team look for when selecting a yearling?
While a good pedigree is desirable, there are also many other aspects of the horse that factor into our final decision. The physical make-up of a horse is the most important aspect. Horses should be athletic, free moving and must be able to handle the pressures of the sale yard. We also take into account sire service fees, possible residual value of the horse and market conditions. Horses are only considered if they pass a pre-sale vet exam and present clean x-rays and scope reports. We consult our trainer and vet on all possible purchases.
How many horses do Elite Thoroughbreds purchase a year and why?
It is quality that matters and not quantity. We believe that 6 to 8 purchases a year is a good number to work with. Why? Because our owners are not just another number! By restricting the amount of horses we syndicate, it allows us to dedicate ourselves to providing detailed and precise information on your thoroughbred. Our main focus is the health and wellbeing of your horse, and YOU the owner. That being said, this is clearly evident through our industry leading owner updates which are sent out at a minimum of once per week and are at times accompanied by photos, video footage and audio reports on your horse and its progress.
What should I expect during my racehorse ownership experience?
While you may stumble across that very good city class horse we all aspire to own, it is important that you remain realistic. If you go into ownership and plan on having a great time, meeting new people, going to the races, open days, track work and have a desire to learn just what it takes to get your horse to the races, then you have started on a winning note. Remaining both positive and realistic about your horses ability will ensure that you have a great experience. You may own a share in a horse that races competitively in the country or provincial areas, or a budding superstar that contest the rich race meetings in town. In any event, racehorse ownership is highly addictive, a fantastic thrill and the ultimate adrenalin rush!
Does Elite Thoroughbreds retain any prize money that your horse may earn?
Certainly not! All prize money is distributed to the owners accordingly.
Can I talk to the trainer directly?
Yes. We encourage all owners to be as involved as possible. Although we provide an extensive management service that will provide all the answers to your questions in regards to your horses health and activities.
Does my name appear in the race book?
Yes. If you own an interest of 5% or greater, then your name will appear in the race book as an individual owner, and therefore entitles you to full owner privileges.
Are there any risks involved?
Yes. While we use every possible resource to insure that your horse has a lengthy and successful career, it is possible that your horse may be injured or requires a certain period of recovery due to injury. It is also possible for horses to break down and never race again. Elite Thoroughbreds will have already taken out an insurance policy to protect your investment against death\mortality and theft. We encourage all owners to renew your insurance policies. It cost about 5% of the share price per annum (e.g. A $4000 share would cost $200 per year). Rest assure that our team of professionals take every necessary step to help insure the health and wellbeing of your horse. For more information on what your insurance policy covers, please contact our office.
Am I able to inspect the horse myself if I am interested in purchasing a share?
You most certainly can. Simply contact us and we can arrange a suitable inspection time. We encourage such interest from current and potential owners.
Am I able to sell my share later on if need be?
Yes. If you find yourself in a situation where you need to sell your share due to personal or changing financial circumstances, then we can aid you in doing so. All aspects of the sale including price, market conditions and time frame are discussed with the selling client in order to obtain the best result possible.
So what happens once the horses racing career is over?
It will then be discussed amongst the owners as to what happens to the horse. Most horses have residual value once their racing career is over. A Filly usually goes to stud and can be valuable if they have had a solid racing career. About 90% of colts are gelded for various reasons. If your horse was to remain a colt and have a successful racing career, then he may be sent to stud. This can prove to be financially rewarding for owners of the colt. All proceeds of sale are distributed according to the share amount owned minus associated cost.
What is the ‘Elite’ guarantee?
Owner involvement and communication is our number one priority and you will certainly enjoy every minute of the ‘Elite’ ownership experience!