A Comparative Analysis for the Aussie Enthusiast
Passionate about horse racing? Have you ever dreamt about one day owning a thoroughbred yourself? And yet, with all dreams, there comes the decision of how you will act – particularly whether to dive into the exciting world of bloodstock syndications or to stride solo with individual ownership.
Each option will appeal to different people. As such, some specialists have compiled this comparative guide to help you navigate these waters, offering a complete analysis tailored to the Australian market.
What are Bloodstock Syndications?
Bloodstock syndications are a form of shared horse ownership. By joining a syndicate, you become part of a select group of investors that collectively owns a racehorse, which can be a game-changer, particularly for newcomers to the racing scene, as it significantly reduces the financial burden compared to individual ownership.
The benefits of bloodstock syndications are numerous, including:
- Shared costs: By splitting the shares amongst multiple people, horse ownership immediately becomes more affordable
- Reduced risk: There is always a financial outlay required in training and entering a horse into their races, but since you only hold part ownership, the financial risk is spread across several others
- Shared excitement: Nothing beats the camaraderie of celebrating a win with your fellow syndicate members
How Does Individual Ownership Differ?
On the other hand, individual ownership offers an entirely different horse racing experience. Although it costs significantly more in both upfront and ongoing expenses, you will have a greater level of control. When you individually own a horse, every decision, every cost and every reward will rest solely on your shoulders.
Comparative Analysis Between Bloodstock Syndications & Individual Ownership
As mentioned above, the decision to invest in a thoroughbred on your own or through bloodstock syndications will largely depend on your financial position, lifestyle and risk tolerance.
Before you forward, here are some points that could help you decide:
- Cost: Horse racing shares in a syndication typically require a lower upfront cost, making it a more accessible option for many. Moreover, ongoing expenses like training and veterinary costs are shared among syndicate members. Individual ownership, however, requires a more significant financial commitment but potentially offers greater returns.
- Risk: Syndication spreads the financial risk across the group, while individual ownership puts all the risk on one person. Also, the health risk of the horse and the risk of poor performance is shared in syndication.
- Emotion: Syndication offers the thrill of being part of a team and the shared excitement of a win. Individual ownership can provide a deeper emotional connection to the horse and the thrill of making all the decisions.
- Time and commitment: Syndication often involves less time and commitment since decisions are made collectively. Individual ownership, in contrast, requires a more substantial time commitment and involvement in all aspects of the horse’s training and racing sports career.
