Do you fancy yourself getting into the ownership group of a top-notch horse and joining with the other owners to bet on horses? Owning a top-notch horse can certainly be incredibly rewarding and profitable, which means it just may just be worth taking a closer look at some local competitive racing clubs, as well as learning more about the dynamics of horse syndicate racing. The key dynamics to understand is that there are people who are serious about winning, and then there are those who are willing to wager on any horse based on luck, or even worse, someone’s last-minute decision. The problem is that there is no middle ground when it comes to horse gambling, so you’ll have to decide if you want to go all-in with your bets and risk losing a lot of money, or you’d rather play it safe, and make smaller bets that still allow you to make a profit. So let’s take a closer look at the various horse syndicate racing structures:
Are you looking for horse syndicate or team?
Horse ownership syndication allows you to form a group of people who share an interest in investing in the horse racing sports. You will make money each year from the interest you have accrued by purchasing a horse in syndication. There are two basic ways to organize this: through outright purchase, or through a managed account. If you’re going through a managed account, you will be personally managing your horse ownership interests; the downside is that you will probably have to pay a large management fee each year.
Direct horse ownership syndicates can be arranged where each member will invest a minimum amount. This amount is usually considerably lower than the annual maintenance fees, but you do get the convenience of meeting regularly and trading with people you know and trust. The downside is that there is no way to guarantee any profits, and the syndicate owners may not use any of their funds to actually run the syndicate themselves. These types of syndicates also usually come with annual maintenance fees.