To setup a syndicate for up to 20 people to to buy a share in a race horse in Victoria you are required to fill in a ‘Register a 20 Person Syndicate‘ form and then send through to Racing Victoria to be approved and created.
The first person named on the form will be deemed the Manager of the syndicate and space is provided on the form for two preferred syndicate names.
Assume you submit the syndicate name ‘Carn The Hawks’ and it gets approved, and the Manager is Mr Peter Smith. It would generally go in the racebook as ‘Carn The Hawks (Mr. P. Smith)’ if submitted correctly.
The initial cost to set up a horse racing syndicate for up to 20 members is a one-off fee of $275 per syndicate. An annual renewal fee of $55 is payable to maintain your syndicate.
It is important to know that the syndicate does not own the horse, unless it purchases 100%, but most syndicates are generally in the 10% share range, and that makes the syndicate a part owner of the horse, owning a 10% share.
A syndicate buys a share in a racehorse, and that can be as many shares as you like, but for the purposes of this article we will assume 10%.
Each member of the 20 person syndicate is then responsible for 0.5% of the ongoing monthly costs for a 10% share.
Having raced a number of horses with Australian Throughbred Bloodstock over the years, we can safely use the following figures as a guideline.
Approximate ongoing costs for 10% Share for 20 person syndicate;
On average it costs around $300 per month for a 10% share with ATB horses, although that figure will reduce with any prizemoney earnings accumulated during your horse’s racing career.
A 20 person syndicate would share the monthly cost 20 ways, which equates to around $20 per month per person.
Setting up a racehorse syndication is easy enough and planning ahead is highly recommended.
The easiest way to run your 20 person syndicate is to set up an account to be run by the Manager, and have all 20 members pay $20 per month into that account.
All training & agistment bills (and any others) can be paid from that account and Racing Victoria can then pay any prizemoney directly into the same account.
Select the right horse and he will pay his own way, we can attest to that, then any money in the kitty can pay for winning photos along the way.
Owning a racehorse does not have to be expensive if you can get family & friends involved!
Give Darren Dance a call on 0417 616 666 and start racing your very own racehorse today!