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  1. #1
    Join Date
    Aug. 11, 2012
    Location
    New Zealand
    Posts
    39

    Default Advice: Shares in an Eventing horse

    Hi there,

    Im about to embark in my first ever partnership in an amazing up and coming Event horse.

    The shares are split 51% 24.5% and 24.5%.

    I am buying into 24.5% share.

    There is an initial buy-in cost and then on-going costs of upkeep, outside training and entry fees. As well as fuel/mileage costs for
    travel.

    I know the horse, the 51% shareholder(friend and horse trainer).
    I dont know the other shareholder but hope to meet her soon. She is a well established pony breeder.
    51% shareholder will be the main trainer, rider and the horse is living on her property.

    Neither of the other shareholders or myself have ever done a share situation before.
    We are getting a contract written up, with it only to be finalised when we are all happy.

    The horse(Nigel) will be trained and competed, with all prize money split. And when he is ready and has proved himself, he will be sold, which will also be split.

    Advice needed is, how does it normally work?
    Do we pay for costs as we go? or pay into an account for use when needed?
    Actually any advice is needed....



  2. #2
    Join Date
    Jan. 18, 2008
    Location
    land of the Canucks aka West Coast B.C.
    Posts
    3,745

    Default

    You might be want to post this in the racing section since they do a fair number of syndicates.

    Coming from the racing world, I think the way my boss works is that they just figure out the monthly bill for training, feed, board , meds etc and then she just divides bill between all share holders based on %.

    Not sure how shows worked into the mix though.

    Good luck and have fun!
    P.



  3. #3
    Join Date
    Jan. 4, 2007
    Location
    TX
    Posts
    46,263

    Default

    That is the way many cutting and reining horses are competing, with the trainer and other interested parties with a percentage of the ownership.

    There are all kinds of "splits", as described by the appropriate contracts.
    That is a good way for breeders to get their horses in the hands of the trainers they think can get their horses promoted best, for trainers to get the better horses they may not want to carry all the risk of owning and that lets them have more horses to manage.

    For what I have seen, having also been part of that, you have to be very sure you are entering in such contracts with agreeable, sensible people, that understand horses and the horse world and won't get annoyed at the drop of a hat with all that happens that is not good while competing horses and are happy when it goes well.

    Just get an attorney used to those contracts and get good insurance on the horse.


    1 members found this post helpful.

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