In this Discussion
- Chris August 2021
- Elitist May 2021
- Flanders April 2021
- freodockers June 2021
- H-BOMBER May 2021
- hash May 2021
- JayJay April 2021
- jum April 2021
- LETSDOTHIS April 2021
- Manchild July 2021
- Ngawyni June 2021
- Precision1 June 2021
- psycho August 2021
- RIO June 2021
- Rodent April 2021
- savethegame April 2021
- silky May 2021
- spinking June 2021
- thefalcon August 2021
- Thunderstruck July 2021
- tony August 2021
- Vincent_vega July 2021
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Involved Falcon? These events all need to the proper people involved to get paid etc so of course they have to charge quite a bit.
Thunderstruck, spinking likes this post.
No mate zero agenda I'd say from all critics, questions have been asked as to why it is seen fit to collect up to 200k a month on an ongoing basis to train six horses LOL(think you have a good idea how much this costs yeh??)if you think that isn't taking the piss then that's your call and as you said it's the call of the victims oops i mean customers.
And Spink you said 200? there are TEN THOUSAND shares for sale might be off a bit with the 200 ticky theory :))
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Cost wise, I've always found functions held at Perth racing pretty good. I'm more of a pay more get all inclusive person but can understand the overheads and costs associated with these functions.
Good luck to all
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For those
that missed the discussion on the quickly deleted other thread, it began with a
post containing a media release announcing
the Blackhearts’ first purchase – Incheon Express.
The media
release mentioned Incheon Express’ impressive first up 5 length win at Ballarat
and that it ran 3rd at its next start at the Sunshine Coast in July.
Apparently,
it was purchased by TRL (for the Blackhearts) for $150,000 plus GST (this wasn’t
mentioned in the media release but is stated elsewhere).
The post
said the horse had been sold to Hong Kong for “massive money” but the sale fell
over because of a low grade veterinary issue.
What wasn’t
mentioned is that at its third and most recent start in December, Incheon
Express was beaten 6.75 lengths when 4th in a class 1 at Doomben.
The horse
clearly has (or had) ability as demonstrated by its first start win. It’s next two starts raise questions. My
point was, if you’re going to ask people to put money in, they should have all
the information.
Also interesting
is that Incheon Express, has had 3 starts, each for a different trainer, and appears
to have changed hands at least once before being sold to The Racing League.
Chris likes this post.
Next, the deleted
thread also attacked the amount of spin involved in promoting this product.
While the advertising,
including on this website, invites people to join for “only $200” and get “ownership
benefits” including “choose your trainer” and “pick your jockey each race” and “get
invited to exclusive race day events”, the reality is:
$200. There are further charges of $20/month and $60 per unit each January
(to buy a further 2 horses per year until the team has 10 horses), so the
total cost for one unit is $200 entry plus $300 pa. If you buy more than
one unit the $20 per month becomes $5 a month for the second and each
subsequent unit. I don’t know, because
I haven’t seen the fine print, how a unit holder can bail out if they want
or need to avoid the ongoing liability.
trains which horse. The panel of 6 WA trainers has already been chosen by
a vote. Unit holders were asked to choose a panel of 6 from, I believe, a
list of 7 trainers. And as for who now trains Incheon Express, another TRL
media release says:
“We will be asking Blackhearts owners their thoughts
on who should train Incheon Express. TRL’s Bloodstock Team will take
Blackheart’s owners’ ideas on board before allocating the trainer to Incheon
Express for the Blackhearts.”
https://www.trl.net/news/was-off-to-the-races-aboard-the-incheon-express/
your jockey each race (how would that work anyway?). TRL’s website says:
Jockeys
will be selected by a team’s elected trainers
- TRL
management believe in trusting our experienced trainers to choose the most
suitable jockey for a particular horse
- Team
managers may occasionally discuss jockey selections with trainers
https://www.blackhearts.net/what-is-trl/#who-will-train-the-horses
won’t be cheap either. The one last Saturday cost $106.59.
I wish
everyone who puts their money in luck. But I think people are entitled to have
a clearer understanding of what they're getting into before they decide.
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To be fair, there’s absolutely nothing to suggest TRL is doing anything
improper. The advertising has been misleading in places but, otherwise, they have put
forward a legitimate offer, with the details set out in the PDS, which people
can choose to buy into or not. Anyone who reads the PDS will know what they’re
getting into.
Two things in the PDS stick out for me.
First, we know the price of one unit is $200 on top of which
there are ongoing charges of $20 a month and $60 each January – so an
additional $300 each year. However, as the PDS states on p 8, “An investor is
buying a Unit for an indefinite period, as there is no specified end date of
the Scheme. The Scheme will continue to operate until its determined that the
Scheme be wound up”.
And, there’s no easy way out.
On p 8, the PDS states “Unit Holders have no right to
require the Responsible Entity to redeem Units or to buy them back at any time
during the life of the Scheme. However Unit Holders may transfer the Units to
some other person with the approval of the Responsible Entity, at its
discretion”.
And on p 16, the PDS states “The Responsible Entity may
bring an action against a Unit Holder to collect all amounts due. . . The
Responsible Entity is not obligated to sell the units within any specific
period of time and in any event may be unable to do so. The liability for
ongoing costs associated with the Units may not be avoided by abandoning those
Units”.
On p 18, the PDS also say the Responsible Entity has the right
to sell the Unit Holder’s Unit and to deduct any outstanding monies from the
proceeds, but, as stated above, they may be unable to do so.
So if a Unit Holder wants out, to avoid the ongoing monthly
and annual costs, they may have to find someone themselves to sell or give
their unit to.
Secondly, the PDS states that while the initial $200
purchase price and the annual $60 charge will be used to buy horses, the additional $20 per month per unit (or $5
per month per unit for the second and subsequent units if the Unit Holder buys
more than one unit), referred to in the PDS as Periodic Class Dues, will be
used to cover the Scheme’s operating expenses including a $10,000 one off Establishment
Fee and a $25,000 annual fee both paid to Sire Custodians Ltd for acting as the
responsible entity for the Scheme and – here’s the kicker – “The unexpended
surplus will be made available to the Manager as its remuneration for performing
the Manager’s duties, including providing the enhanced “The Racing League Ownership
Experience””. The Manager is TRL.
They are trying to sell 10,000 units per team – so that could
potentially mean up to $200,000 per month or $2.4m a year being collected as Periodic
Class Dues (though the actual amount will be less if people buy more than one
unit each and if not all units are sold). Some of that money will be used to
train up to 6 horses in the first year, up to 8 horses in the second year and
up to 10 horses in the third and subsequent years. Some of the money will go in
admin, marketing and compliance costs, but the rest will go to TRL as its
reward. And that’s only for one team. There are 4 teams.
So the bottom line is that, if someone buys one unit, their
initial $200 outlay and the annual $60 charge will be used to buy horses and some
of the additional $240 they put in each year will be spent on training and vet
costs (not insurance because the PDS says the horses ordinarily won’t be
insured and there will be a special levy if any of them are). But most of that
$240 each year is likely to be taken up in other operating costs (admin, marketing
etc) and by TRL.
Lastly, on p 21, the PDS states that if a Scheme horse is
sold for a profit, TRL will be paid a performance fee of 20% of the net profit
and the trainer’s terms and conditions may also provide for the trainer to
receive additional remuneration such as, by way of example only, 5% of the
profit.
https://www.blackhearts.net/wp-content/uploads/2020/09/pds_wa01.pdf
Gilgamesh, thefalcon likes this post.