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| Version 1 | Version 2 |
|---|---|
| Owning a racehorse the cheaper way | Owning a racehorse the cheaper way |
| (3 days later) | |
| By Catherine Burns Business reporter, BBC News | By Catherine Burns Business reporter, BBC News |
| They say you do not get rich gambling but what about owning racehorses? | They say you do not get rich gambling but what about owning racehorses? |
| The prize money for this year's Grand National is £950,000. | The prize money for this year's Grand National is £950,000. |
| It is an expensive sport though, especially at the top levels. | It is an expensive sport though, especially at the top levels. |
| It can cost anything from several thousand to millions of pounds to buy a horse. | It can cost anything from several thousand to millions of pounds to buy a horse. |
| There is a saying in the sport: it costs as much to train a bad horse as a good one. | There is a saying in the sport: it costs as much to train a bad horse as a good one. |
| The Racehorse Owners Association thinks it comes to an average of £20,000 a year. | The Racehorse Owners Association thinks it comes to an average of £20,000 a year. |
| And if that is not eye-watering enough, it says for every £100 an owner spends, they will only see £20 as a return on their investment. | And if that is not eye-watering enough, it says for every £100 an owner spends, they will only see £20 as a return on their investment. |
| Syndication | Syndication |
| One way to take part without so much expense is to join a syndicate. | One way to take part without so much expense is to join a syndicate. |
| Around half of racehorses are owned by groups of people. | Around half of racehorses are owned by groups of people. |
| A few hundred pounds will pay for your own tiny share a horse. | A few hundred pounds will pay for your own tiny share a horse. |
| If you want a bigger chunk it will cost thousands. | If you want a bigger chunk it will cost thousands. |
| Stuart Riley works for the Racing Post and points out it is not just about the money. | Stuart Riley works for the Racing Post and points out it is not just about the money. |
| "People join syndicates because it's a more cost effective way of getting involved in a great sport," he says. | "People join syndicates because it's a more cost effective way of getting involved in a great sport," he says. |
| "They're very unlikely to get rich quickly. It's not a get-rich-quick scheme, it's a have-fun-quick scheme." | "They're very unlikely to get rich quickly. It's not a get-rich-quick scheme, it's a have-fun-quick scheme." |
| Selling at the right time | Selling at the right time |
| John Best trains horses for syndicates. | John Best trains horses for syndicates. |
| He charges members a flat yearly fee, and that covers every possible expense, from stable costs and vets' bills to race entries. | |
| He says there is no need for racehorse owners to lose money. | He says there is no need for racehorse owners to lose money. |
| In his view it all comes down to one key thing: selling the horse on again at the right time. | In his view it all comes down to one key thing: selling the horse on again at the right time. |
| "Overall, from the time they buy a horse until they sell, they can make a healthy profit, about 20% or 30% - provided they listen to my advice." | "Overall, from the time they buy a horse until they sell, they can make a healthy profit, about 20% or 30% - provided they listen to my advice." |
| He says his biggest success story was an owner who invested £70,000. | He says his biggest success story was an owner who invested £70,000. |
| The prize money and profits from selling his horse came to more than £1.5m. | The prize money and profits from selling his horse came to more than £1.5m. |
| But right now, he's very excited about one young horse in particular. | But right now, he's very excited about one young horse in particular. |
| "A year ago Stone of Folca was syndicated for £30,000," he says. | "A year ago Stone of Folca was syndicated for £30,000," he says. |
| "We've just recently turned down an offer for £300,000 - and I'm confident by the end of the summer he could be worth a million or more." | "We've just recently turned down an offer for £300,000 - and I'm confident by the end of the summer he could be worth a million or more." |
| Winners enclosure | Winners enclosure |
| Pub landlady Miggie Ravenscroft is one of the horse's many owners. | Pub landlady Miggie Ravenscroft is one of the horse's many owners. |
| She paid £185 in all, so she thinks her share is the equivalent to maybe an ear, or some whiskers. | She paid £185 in all, so she thinks her share is the equivalent to maybe an ear, or some whiskers. |
| But even so, she still gets to enjoy some serious perks. | But even so, she still gets to enjoy some serious perks. |
| Last year, out of all the owners, her name was picked for a badge at Royal Ascot. | Last year, out of all the owners, her name was picked for a badge at Royal Ascot. |
| Stone of Folca came 4th in the race, so Miggie got to go into the winners' enclosure. | |
| She realises how lucky that makes her. | She realises how lucky that makes her. |
| "There are people who've had horses all their lives and never get there, so that was such a start - he's an absolutely brilliant horse." | "There are people who've had horses all their lives and never get there, so that was such a start - he's an absolutely brilliant horse." |
| After that success, she joined another syndicate. | After that success, she joined another syndicate. |
| This time she invested £1,000 and it has not gone so well. | This time she invested £1,000 and it has not gone so well. |
| In fact, the horse was doing so badly, the syndicate decided to stop racing her. | In fact, the horse was doing so badly, the syndicate decided to stop racing her. |
| But it has not put Miggie off. | But it has not put Miggie off. |
| "The money I've made is mine to burn as I wish. This is never going to make me rich but it makes me happy." | "The money I've made is mine to burn as I wish. This is never going to make me rich but it makes me happy." |
| There is no compulsory regulation for racing syndicates, although they can sign up to the Racing Syndicates and Club Association. | There is no compulsory regulation for racing syndicates, although they can sign up to the Racing Syndicates and Club Association. |
| Any group that joins agrees to abide by its rules. | Any group that joins agrees to abide by its rules. |
| The Racehorse Owners Association says if you want to join a syndicate, you should always make sure there is a partnership agreement and read it properly before you sign up. | The Racehorse Owners Association says if you want to join a syndicate, you should always make sure there is a partnership agreement and read it properly before you sign up. |