Buying a racehorse is expensive and for most of us joining a syndicate is a great way to reduce the cost of getting involved in racing a thoroughbred.
The enjoyment of racing a horse is not diminished by owning a percentage of a horse, but we we have found it's often enhanced as you get to share the excitement and experience with others.
Wouldn't it be good if you could get better value when you join a syndicate?
The way horses are sold has not changed for hundreds of years and we think it's time it did. The costs of doing business the old way is too expensive!
We have found a better way for horse breeders to sell their yearlings and potential owners to buy them. It's all about cutting out waste and the costs added by the middle men.
Here's a summary of the costs a breeder would incur in selling a horse for $100,000 at public auction:, (figures exclude GST)
- X-Rays approximate - 2 sets - $2,000
- Sale Prepartion (getting the horse fit just so it looks good in the sale ring) - $4,000
- Nomination fees to Magic Millions or Inglis - $2,500
- Transport costs (depending on where the horse goes to) - $1,000
- Sales costs - staff or commisison to agistment farm - $2,500
- Commisison Paid to Auction house - 9% - $9,000
- Total Cost paid by breeder approximately - $21,000
The breeder only retains $79,000 (79% of the sale price)
Here is a summary of what a syndicator would sell this horse for: (figures exclude GST)
- Purchase Price of Horse - $100,000
- Recoupment of Advertsing Costs etc - $10,000
- Legal and accounting costs - $5,000
- Acquistion costs (vets etc) - $5,000
- Profit Margin - $12,500
- Total Cost of syndicate - $132,500
The syndicate owners pay $32,500 more for the horse than it sold for (132.50% of the sale price)
The breeder received $79,000, the owners paid $132,500 and the middle men made the difference $53,500.
How can Dream Run Solve this?
Dream Run is considering ways where we can put breeders in contact with people wanting to buy shares in a horse syndicate, so that syndicate owners can buy their horse for a fraction of the price, while breeders can sell their horse with reduced costs.
Owners and Breeders are welcome to contact us to discuss our proposal by completing the form below.