Syndication? Yes Please.Harness & Greyhounds

JayJay

The word "syndication" has many powerful connotations, from the nasty associated with old Mafia Racketeering, down to the more benign work colleagues Lotto Ticket purchase.

I have always been hesitant about all these "5% or 10% share" deals with training fees paid up for a period and have heard face to face testimony from some shareholders who have been fortunate enough to snag a good performer, watched it earn substantial stakes and received a payout upon the horses retirement that may buy you a regular flat white from a mobile vendor. Others with ones that could not get warm, have upon the expiry of their "honeymoon, all fees paid" period, been slugged absurd amounts to find even a comfortable retirement home for their trusty steed, never mind a trip to the knackery for "rehoming" purposes.

A classic posted on social media today involves a thoroughbred  4yo Gelding bought online for $14k, being syndicated out $7,280 for a 10% share, (valuing the horse at $72,840) for 12 months starting from last March.

From next March, the fees to be charged will include annual predicted training, agistment and floating fees of $54,000, Annual Syndicate Management Fee of $21,384, and Insurance of $4,043 (valuing the horse at $75,000 for a $14,000 purchase, looking at around $8,000 per 10% shareholder. Lets hope he doesn't get sick, no mention of "predicted" vet fees.

Sounds like a snip to me, can't wait to sign up in the hope he can snag a maiden at Whykickamoocow and fellow syndicate members can celebrate by buying a pie and a can of coke. Winners all round.

Rocket_Reign

Gee that’s nice and inflated, I’ve got plenty of horses that are syndicated with some owners having as small as 2% but they all just pay for their share of the horse and then billed monthly and correctly, assuming future costs and pre billing seems hard to work out and will end up unfair one way or the other

JayJay

I agree.....there are no doubt syndicates that play fair, provide an interest for new owners and who don't get taken to the cleaners by unscrupulous operators. And good on them, the concept is a positive for our future. But there are also some pretty dodgy stories out there and I have seen the accounts that the some share holders cop. Just theft really.

Perhaps before your time but there was one set up (thoroughbreds)  where a family member was paid 6 figure salary to answer the phone and do some typing. It collapsed but not before a lot of people got burned, never to return.

Rocket_Reign

JayJay said:

I agree.....there are no doubt syndicates that play fair, provide an interest for new owners and who don't get taken to the cleaners by unscrupulous operators. And good on them, the concept is a positive for our future. But there are also some pretty dodgy stories out there and I have seen the accounts that the some share holders cop. Just theft really.

Perhaps before your time but there was one set up (thoroughbreds)  where a family member was paid 6 figure salary to answer the phone and do some typing. It collapsed but not before a lot of people got burned, never to return.

Yeah I don’t doubt there’s still plenty of them operating under similar terms which is a shame because it’s a great way to get new owners involved, burn them and they disappear forever from the game

savethegame

Feel sorry for Harness Trainers no wriggle room, re-- syndication do remember a time when no-more then six owners allowed per horse .
.Gallop trainers in conjunction with syndicate managers are down to selling one off payments
for 0.005%-- 53 dollars no other payments .

1 %= 10,600, Now with the tools available to determine a horses possible achievement levels
with , top class riders who can identify a topliner at trackwork, then klms an hour in correlation with Heart Rates, lactate thresholds, to indicate staying potential. Some Stables now have that much data top horse can be identified very early

So alot these horses are finished that have square wheels . as two yearolds.