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Horse on the gallops

The Partnership Agreement & Totally Transparent Costs

It is very important that every racehorse partner or syndicate member fully understands their obligations to the partnership or syndicates, particularly in terms of payment. Equally they have a right of full access to detailed summaries of income and expenditure. We operate a totally transparent policy. Here are the key points.

Commercial Principles & Partnership Plan

  • Agreed budget for purchase of the horse.
  • Detailed estimate of likely costs for two years.
  • Assumption that the horse stays in training for that period.
  • Annual review of the horse’s performance.
  • If the horse under-performs, it may be sold.
  • If the horse has potential, it may be retained.
  • All decisions taken by the owners themselves.
  • Any conflicts of interest actively avoided.
  • All shares are equal and carry similar weight.

Total Cost Transparency

  • Quarterly and annual income and expenditure summary.
  • All costs itemised.  No hidden margins or mark-ups.
  • Income covers prize money, appearance money, sponsorship, BHA and ROA discounts.
  • Expenditure covers purchase costs, pre-training, training, out of training and sales.
  • Purchase costs cover the purchase price, auction fees, agent’s commission, vetting, transport.  No luck money or any add-ons.  The costs are what the owners actually incur.
  • Post-purchase keep, breaking and pre-training costs are itemised.
  • Full training fees are broken down into their key components.
  • All other costs are listed e.g. entry fees, registrations, gallops etc.
  • Out of training costs are kept to a minimum.
  • Sale and / or retraining costs are identified.

Partnership or Syndicate Agreement

  • All owners sign a written agreement.
  • Covers the key decisions on the horse’s running and future sale.
  • Assumes an initial term of two years (which can be reduced or extended by the partners).
  • Binding on payment i.e. a one-off payment for purchase and estimated training fees over the two-year period or one-off payment for purchase and a quarterly payment schedule.
  • Covers eventualities such as an owner wanting to exit the partnership.
  • Further charges may be made if actual costs exceed the estimate.
  • Exceptional veterinary costs are a typical example.
  • Detailed review annually of actual costs against estimate.
  • Annual dividend paid if income allows.

Administrative Costs

  • Owners for Owners’ administration costs are kept very low.
  • £250 in total per owner, per horse, per year is the maximum Owners for Owners charge to cover administration.
  • Covers VAT administration, preparation of accounts, design of the web site, weekly communication and other updates.
  • Each partner pays their proportion of the annual cost.
  • Insurance is at the discretion of each owner and can be easily arranged by Owners for Owners.

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