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
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....
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 %.
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.