Interested?

Want to become a Racehorse Owner?

 

The thoroughbred industry welcomes new owners.  Being an owner is a thrill like no other! The purpose of this guide is to walk you down the path to racehorse ownership and put you in the picture.

 

Investing in thoroughbred racing and breeding may offer exciting business opportunities but it is important to recognize that it is nevertheless of a speculative nature.  The investment is not for everyone, but it may be right for you.

Before you get involved you need to accept that horses are not machines and there is no “guarantee” to your investment.  The risks are high but the rewards both financial and emotional can be substantial.

 

It may be prudent to begin by answering these questions -

 

a)      What level of financial resources do I wish to allocate to my racing interests?

Determine the total amount you are prepared to invest and develop a budget to be allocated towards initial purchase and monthly expenditure.  The amount of financial resource you are prepared to allocate is often a good guide in determining the most appropriate form of ownership

 

b)        Do you prefer to invest as an individual or in a group?

Although your level of investment should serve as a guide in determining the appropriate form of ownership for you, you may be the type of person who prefers to call all the shots, assume all the risks and take all the glory!  Or, do you prefer to spread your risks and share the rewards?

 

c)        What time period is involved?

In selecting a horse you need to consider whether you are looking for a quick return offered by a precocious animal or are prepared to wait a little longer for a more stoutly based option.

 

ESTIMATED MONTHLY COSTS
There are a number of variables within our estimated costs that can change depending on the racing 
schedule and well-being of your horse. The examples below should serve as a guide in helping you decide your degree of involvement:

Pre Training -   R2500 per month
Full Training: -      R4000 per month

The training fees do not include routine veterinary work they send it to you and do not include extensive treatment and operations.

Veterinary Fees - Depending on treatment
Farrier Fees - R300 per month depending on racing
Nomination/Acceptance Fees– Depending on the races nominated

 

Trainers

Thoroughbred horseracing is a team sport.  In addition to a good horse, the team needs a good trainer.

It would be wise to exercise as much care in selecting your trainer and or bloodstock agent as you would in selecting a horse.  Consultants can come in various forms, from trainer, bloodstock agent, pedigree advisor, vet to an experienced owner.

 

SELECTING A TRAINER
It is a good idea to select your trainer before purchasing your thoroughbred.  This is a very important consideration, as he or she can give invaluable advice in the selection and purchasing process.

There are training centers around all the major cities in South Africa.  In choosing your trainer it is advisable to select one that is based not too far from your home.

You can study the trainers’ performance chart and select any of the trainers but there are other factors to consider.  Some trainers prefer to run small, quality yards with a minimum band of owners.  Although they may not be log-leaders, their percentage of winners to runners is often a good yardstick but bear in mind that some of the smaller yards do not have the top stock.

The owner/trainer relationship is probably the most important in racing.  So take your time and select the individual that suits your needs and personality.

The RA has developed some minimum standards that are expected from an owner and from a trainer.

It is important that amongst other details you establish the following.

·  How often should you reasonably expect the trainer to communicate with you?

·  When do you wish to be consulted?

·  What are the arrangements for visiting the yard?

·  Would you like the trainer to attend sales and make purchases on your behalf?

 

Purchase or Lease?

Public Auction – Auction sales offer the widest selection and often assure fair market values for horses.  Auction sales are held throughout the year.  Follow the link to find out when the next sale is:

 

http://www.tba.co.za/index.php

 

Many other sales take place during the year and details of these can be obtained from your local racing organization.

Auction procedures – The auction purchase process can be separated into three stages.

 

Before the sale

a) Complete the paperwork

b) Establish credit

c) Review conditions of sale (printed in catalogue)

d) Meet with your consultants (agent and/or trainer) to select horses.  Devise a first-look list and a subsequent short list.  The short list will be dependent on the conformation inspection of each horse.

e) Assign responsibilities—Bidding arrangements—Insurance—Post-sale arrangements

 

During the sale

a) All horses on the preliminary list should be inspected

b) Inspect your final candidates several times.  Do not be afraid to go back for a second and third look

c) You may wish to have a veterinarian perform a pre-purchase examination.

d) Bidding – do not permit yourself to get carried away when bidding.

e) Follow your initial plan and stay within your identified budget.

f) Bid only on horses on your short-list, exercise control and stay within the pre-determined price limit for that horse.

 

Post-sales procedures

a) Payment – Payment for the purchases should be consistent with the arrangements made with the sales company.  Upon payment, buyers will be given a stable release and at a later stage the National Horseracing Authority change of ownership certificate from the sales company.
b) Successful bidders must make the necessary arrangements for the transport from the sales ground and the board and care of their purchase.

 

If you have any other questions, please do not hesitate to contact me and I will happily oblige.

David Kuit Racing Stables