Words: John Ruler
MANY PUNTERS, AND not just those passionate about the Sport of Kings, are increasingly investing in racehorses – without paying a king’s ransom. From £30 upwards you can become part-owner of a thoroughbred, synonymous with racing since the 17th century, ancestor of the Arabian breed and famed for its remarkable speed.
Only around 20% of stakeholders actually make money from investing in a horse but the rewards can be huge. Anthony and Victoria Pakenham from Newmarket paid just 16,000 guineas (£16,800) for Sir Percy in 2004. He has now won five races, including the Derby, and over £1m in prize money alone. Estimated to be worth £5m as a stallion, his value will escalate if his first progeny is successful on the racetrack. A syndicate of 600 people owned 2005 Derby winner Motivator. They each received £8,000 for their share when he went to stud after winning over £1.5m in prize money. The Royal family has a long racing pedigree. Late last year, Prince Charles and the Duchess of Cornwall bought Royal Superlative, a one-year-old filly, rumoured to be worth around £100,000, who will run in 2008. Swapping pitch for turf, football player Michael Owen is expanding his racehorse ownership and breeding interests. He recently paid 38,000 guineas (£39,900) for a colt and has invested six-figure sums in setting up a new training establishment. At the top end of the breeding market, few have fared better than Lord Lloyd Webber, who established Watership Down Stud in Berkshire with his wife Madeleine in the early 1990s. Several of their mares have proved to be cash cows. The first foals sold out of Darara – a horse bought for around £460,000 in 1994 – each made £525,000 as yearlings, while the next one sold at Tattersalls’ Newmarket sales hit the jackpot by making £3.57m. Silver Lane, a mare that cost around £500,000, has produced youngsters that have realised £2.31m, £410,000, £420,000, £190,000 and £160,000 respectively when sold.
In June 2001, Sir Alex Ferguson, a keen racing fan and racehorse owner, took up an offer from Irish multi-millionaire John Magnier – head of the worldwide Coolmore Stud operation and a major shareholder in Manchester United – for a 50% share in the then-little reckoned Rock of Gibraltar. Bought for a reported knock down price of £120,000, the now legendary two-year-old went on to win the Sussex Stakes in July 2002. It also became the first ever horse to win seven Group One races in a row, including the English and Irish 2,000 Guineas, netting prize money of £1.1m. Things turned sour, however, when after “The Rock’s” retirement in 2003, a headline-grabbing fight ensued over the stallion’s potentially huge fees at stud. Sir Alex eventually agreed a deal to end the dispute. It is reputed last year that Rock of Gibraltar was earning a notional £10m a year at Coolmore Stud.
If buying a horse outright, whether alone or in a partnership with friends, consult a bloodstock agent, who will take a commission – normally 5% of the purchase cost. Alternatively, seek out a trainer on the understanding that the horse usually goes into their yard for training. The British Horse Racing Board website (www.britishhorseracing.com) lists all licensed trainers and allows you to search by name, area or by fees charged. Most would-be owners, however, leave it to a reliable syndicate to do the donkey work. You need only buy one share, though if you involve others you’ll need a minimum number. Some shares will be set to start in the future, others may be live already. Not all will last a year – some will be for a season, or part of a season only. Payment includes a share in the training, saddlery and silks, vet fees, insurance, travel to the races and other relevant costs. It takes £22k-£30k annually to keep a racehorse in training so this isn’t bad value.
Understandably, the more shares you have in a horse, the more the privileges and potential prize money. Horses generally run between three and 10 races each per season; the number you could reasonably expect is reflected in the value of your shares. An average race’s prize money is about £3,000 (tax free), but for an above-average race it is around £7,000. This means that you need to win two to three races a year to make money from ownership.
Ownaracehorse.co.uk had one horse that has won over £30,000 in prize money. There are no age restrictions to owning a racehorse – the youngest shareholder in Ownaracehorse is currently 12 and the oldest is 90.
As for breeds, the Arab is very much a celebrity’s horse. The Rolling Stones drummer Charlie Watts and his wife Shirley run Halsdon Arabians in Devon (www..halsdonarabians.com). Other owners include Patrick Swayze, Shirley MacLaine and Burt Reynolds, paying from £10,000 up to £500,000. But while beauty, stamina and speed will always rank highly, all breeds can become fashionable and fetch good prices. Piebald and Skewbald horses, for instance, are currently hot property in Europe and America, attracting prices of up to £60,000. Also gaining is the Lusitano, the royal breed of warrior horse from Portugal. “It is becoming almost a designer horse, whose delightful qualities are attracting worldwide interest, especially among those who love Portugal and would like to buy into its traditions and strong links with England,” says Sherene Rahmatallah of Sussex Lusitanos (www.sussexlusitanos.co. uk) in West Sussex. Prices of up to £70,000 have been paid in the USA and Mexico, while £20,000 to £25,000 is not unusual.
Watch out, too, for a growing interest in the Morgan horse, a smaller ride-and-drive breed from the USA. For the majority, however, it’s the magic of horse racing that matters. That includes those whose shares were gifts – and have since become enthusiastic race-goers. This applies particularly to women who, having bought shares for a husband or boyfriend – the majority of shareholders are men – revel in the glamour of a race meeting. “Never mind what bit you own,” advises Richard Laws, commercial director of Ownaracehorse. “It’s the bit on the end of the nose that wins. The greatest thrill is seeing your horse in action. So, too, is chatting to the jockeys, some of them well-known, and rubbing shoulders with the rich and famous.”
SYNDICATES & STABLES
UK
■ OWNARACEHORSE +44 (0)845 8381532; www.ownaracehorse.co.uk
■ WALTER SWINBURN STABLES (of Shergar fame) +44 (0)1422 85132; www.walterswinburn.racing.co.uk
COUNTY DUBLIN
■ BYERLEY RACING SYNDICATES +353 (0)1 284 1280; www.byerleyracing.ie
KENTUCKY, USA
■ TEAM VALOR +1 +1 859 873 647 873 1003 www.teamvalor.com
DO
■ Develop a strong relationship with your trainer and always listen to his/her advice.
■ Know exactly what your horse, or share in a horse, is going to cost you.
■ Sign an agreement that lays out terms and conditions; a sample agreement is available from the British Horse Racing Board on www..britishhorseracing. com/ownership
■ Visit your horse at the trainer’s yard whenever possible. It’s as much a part of the experience as going to the races.
■ Ask questions of anyone in racing.
DON’T
■ Expect a guaranteed return on your investment.
■ Expect your horse to perform the same every time it runs – they are not machines.
■ Buy a horse without advice from a trainer or a bloodstock agent.
■ Forget to dream – racing gives anyone the chance to take on billionaires – and beat them.
James Oldring, The British Horse Racing Board
Bookmark 
