Syndicators

[Hesi]

Apart from Te Akau and Go Racing, are there any other significant players in this market

[Hesi]

I note with the Karaka yearlings purchased, that are all up for syndication, that Te Akau only put a nominal fee of $10,000 on each syndication

So the million dollar filly, you can buy 10% for $101,000, 5% for $50,500 or 2.5% for $25,250, all plus GST.

The same applies to all yearlings up for syndicate, which I thought was a pretty good deal

Ongoing costs approx $420/month plus GST per 10% share

With Go Racing 

Lot 14 Tivaci - Adriatico $240K purchase

10% shares available at $26,800, 5% half that, so in this case it would mean a clipping of the ticket of $28,000, so substantially more than Te Akau.  The Savabeel - Arabian Knight, a $150K purchase, 10% shares of $17,450, equates to an even higher mark up

Also the ongoing costs, which are from May 1 2023, are $490/month per 10% share, which is also substantially more

But then looking further some cheaper purchases the ongoing costs are $340 and $380

 

[Josias]

2 hours ago, Hesi said:

Also the ongoing costs, which are from May 1 2023, are $490/month per 10% share, which is also substantially more

But then looking further some cheaper purchases the ongoing costs are $340 and $380

 

Could this relate to dearer monthly charges horses earmarked for Aussie Trainers & cheaper costs with NZ Trainers.

[Hesi]

32 minutes ago, Josias said:

Could this relate to dearer monthly charges horses earmarked for Aussie Trainers & cheaper costs with NZ Trainers.

Good point, thanks

[Allovertheform]

4 hours ago, Hesi said:

I note with the Karaka yearlings purchased, that are all up for syndication, that Te Akau only put a nominal fee of $10,000 on each syndication

So the million dollar filly, you can buy 10% for $101,000, 5% for $50,500 or 2.5% for $25,250, all plus GST.

The same applies to all yearlings up for syndicate, which I thought was a pretty good deal

Ongoing costs approx $420/month plus GST per 10% share

With Go Racing 

Lot 14 Tivaci - Adriatico $240K purchase

10% shares available at $26,800, 5% half that, so in this case it would mean a clipping of the ticket of $28,000, so substantially more than Te Akau.  The Savabeel - Arabian Knight, a $150K purchase, 10% shares of $17,450, equates to an even higher mark up

Also the ongoing costs, which are from May 1 2023, are $490/month per 10% share, which is also substantially more

But then looking further some cheaper purchases the ongoing costs are $340 and $380

 

In my personal opinion I would go with go racing as there overall business model is set up for every level of horse racing unlike Te Akau if your horse is a run or 2 below there measure they retire it.

[ngakonui grass]

3 hours ago, Allovertheform said:

In my personal opinion I would go with go racing as there overall business model is set up for every level of horse racing unlike Te Akau if your horse is a run or 2 below there measure they retire it.

or go on Gavelhouse and buy it for next to nothing.

[ngakonui grass]

On 2/1/2023 at 9:19 PM, Hesi said:

Apart from Te Akau and Go Racing, are there any other significant players in this market

Rogerson has about 12 available.

[Hesi]

Ok ta, will have a look

[Buller Rep]

I’ve gone the Australian way. Currently have horses with Australian Bloodstock & Prime Thoroughbreds. 
Both use a number of different trainers. 
My two at the moment at with Kris Lees and Patrick Payne. 
Average cost per month when in full training is about A$550 for my 10%. 
When racing though it gets to $650 with Kris Lees. The Patrick Payne one hasn’t raced yet as only two. 
However in Australia you always get something back from the Club win or lose. 
Kris Lees and Patrick Payne’s daily rates are A$105 + GST 10% whereas Te Akau is NZ$105 + GST 15%.
 

[Buller Rep]

In NZ, others who bought horses will have bits and pieces available, it’s simply that the majority will be sold in house to their existing client base, but new comers are always welcome. 
For example because I also have a horse with Tony Pike, a Facebook posting of the stable popped up on my thread to say that shares are available in the Kermadec filly that he bought for $90k plus gst. 
With her, 10% will cost you $9k + gst, plus a few little costs to buy her, plus of course the Karaka Race fees, insurance, freight home etc and then after that you will be up for 10% of the actual monthly costs. Overall for the year about $4k. [including gst]
I am sure Marsh, James and many others will operate similarly. 
If your favourite trainer bought a horse that you like, for the price you like, give him or her a call. I am sure you will be welcomed with both arms. 
Given Chris Rutten’s huge successes I would be giving him or Royden Bergson a call because they bough some absolutely crackers for fair prices as Chris always does.
One or two of what he bought will almost certainly end up in the Karaka races, as they always do. 
I say, look further than Te Akau and Go Racing (not that I am criticising either) if you want to get involved. 
I am too independent a person to be a nondescript member of a Te Akau or Go Racing Syndicate. I want my name in the book for my 5 or 10% share. 

Disclosure. I don’t have horses with any of the above except T Pike, and the Australian ones mentioned in my earlier posting. Chis Rutten has broken in horses for me in the past. Years back I had a piece of one with R James, so no real vested interest with any of the above but a bit of experience to share. 

Edited February 3, 2023 by Buller Rep

[Double R]

4 hours ago, Buller Rep said:

In NZ others who bought horses will have bits and pieces available, it’s simply that the majority will be sold in house to their existing client base, but new comers are always welcome. 
For example because I also have a horse with Tony Pike, a Facebook posting if the stable popped up on my thread to say that shares are available in the Kermadec filly that he bought for $90k plus gst. 
With her, 10% will cost you $9k plus a few little costs to buy her, plus of course the Karaka Race fees, insurance, freight home etc and then after that you will be up for 10% of the actual monthly costs. Overall for the year about $4k. 
I am sure Marsh, James and many others will operate similarly. 
If your favourite trainer bought a horse that you like for the price you like, give him or her a call. I am sure you will be welcomed with both arms. 
Given Chris Rutten’s huge successes I would be giving him or Royden Bergson a call because they bough some absolutely crackers for fair prices as Chris always does.
One or two of what he bought will almost certainly end up in the Karaka races as they always do. 
I say, look further than Te Akau and Go Racing (not that I am criticising either) if you want to get involved. 
I am too independent a person to be a nondescript member of a Te Akau or Go Racing Syndicate. I want my name in the book for my 5 or 10% share. 
Disclosure. I don’t have horses with any of the above except T Pike, and the Australian ones mentioned in my earlier posting. Chis Rutten has broken in horses for me in the past. Years back I had a piece of one with R James, so no real vested interest with any of the above but a bit of experience to share. 

Totally agree Buller Rep.

I have ownership links with Te Akau, but would encourage anyone considering ownership to do their homework, and ask around others who might have connections with stables, and decide what is best for you.

Cheers.

Robert.

[Maximus]

21 hours ago, Hesi said:

I note with the Karaka yearlings purchased, that are all up for syndication, that Te Akau only put a nominal fee of $10,000 on each syndication

So the million dollar filly, you can buy 10% for $101,000, 5% for $50,500 or 2.5% for $25,250, all plus GST.

The same applies to all yearlings up for syndicate, which I thought was a pretty good deal

Ongoing costs approx $420/month plus GST per 10% share

With Go Racing 

Lot 14 Tivaci - Adriatico $240K purchase

10% shares available at $26,800, 5% half that, so in this case it would mean a clipping of the ticket of $28,000, so substantially more than Te Akau.  The Savabeel - Arabian Knight, a $150K purchase, 10% shares of $17,450, equates to an even higher mark up

Also the ongoing costs, which are from May 1 2023, are $490/month per 10% share, which is also substantially more

But then looking further some cheaper purchases the ongoing costs are $340 and $380

 

have you considered the possibility that the difference in fees might relate to additional costs incurred by the syndicator at the Sales? 

eg some horses have a set of scans (X-rays) and/or other tests/treatment to satisfy prospective purchaser there is no major problem with buying the horsie.

MM

[Hesi]

53 minutes ago, Maximus said:

have you considered the possibility that the difference in fees might relate to additional costs incurred by the syndicator at the Sales? 

eg some horses have a set of scans (X-rays) and/or other tests/treatment to satisfy prospective purchaser there is no major problem with buying the horsie.

MM

Te Akau's fee structure is the same for every horse.  They put a nominal fee of $10K on the purchase price of every horse(not a %) then work out the cost per share from that

[Hesi]

Thanks for the input so far

I'm just trying to put as much info on the table about how syndicates operate in NZ, as it will increasingly become the way of the future with respect to horse ownership

[Maximus]

1 hour ago, Hesi said:

Te Akau's fee structure is the same for every horse.  They put a nominal fee of $10K on the purchase price of every horse(not a %) then work out the cost per share from that

yes, understood, but if a horse they have bought has an additional (say) $2k costs from vets, scans, etc  is that outlay passed on in the purchase price?

MM

[Hesi]

A 10% share is $101,000
A 5% share is $50,500
A 2.5% share is $25,250 +GST

This includes pedigree research/analysis & sale expenses at cost, as well as full pre-purchase veterinary inspection & x-ray examination. Your share of transport, insurance and Karaka Million/Pearl Bonus Series entry additional. Ongoing costs per month approx. $420 +GST per 10% share. Full disclosure document is available on request.

[Hesi]

35% still left Maxi, go for it, apparently the best filly he has seen since 1988

[ngakonui grass]

1 hour ago, Hesi said:

Thanks for the input so far

I'm just trying to put as much info on the table about how syndicates operate in NZ, as it will increasingly become the way of the future with respect to horse ownership

Do Te Akau retain a share in their horses?

iT would be a good business plan if they did imo.

[Hesi]

Pass

One of the issues I see for syndicates, if they are made up of racing enthusiasts as opposed to what you would call, racing industry people is, what happens to the horse after it has finished it's racing career, which may be quite short lived, based on the low number of horses that are successful.

[Tonkatime]

On 2/4/2023 at 11:25 AM, Hesi said:

Pass

One of the issues I see for syndicates, if they are made up of racing enthusiasts as opposed to what you would call, racing industry people is, what happens to the horse after it has finished it's racing career, which may be quite short lived, based on the low number of horses that are successful.

We had one that came to the end of it's time, the syndicate members were given a couple of options and it was voted on. The horse didn't initially sell on gavel house but one of the syndicate members wanted the horse so a valuation was done and they paid the syndicate a bit above the figure in the valuation. 

[Turny]

Similarly Tonka, we gifted our horse to a young lady for a future in the show ring, no issues with the syndicate as we simply moved on to a new project

[Hesi]

There is actually a Code of Practice for Syndicators, under the auspices of NZTR

BLOODSTOCK SYNDICATION CODE OF PRACTICE (made by the Board pursuant to Rule 432 of the New Zealand Rules of Racing

Some key points

5 ADVERTISING

5.1 Advertisements must not be misleading or factually incorrect or be likely to bring the thoroughbred industry into disrepute and must otherwise comply with the requirements of the “fair dealing” provisions in Part 2 of the Financial Markets Conduct Act 2013 (which prohibit misleading or deceptive conduct, the making of false or misleading representations and the making of unsubstantiated representations) as if Shares were “financial products” within the meaning of that Act.

18 MANAGEMENT

18.2 The Manager of a Bloodstock Syndicate/the Directors of a Bloodstock Company must keep Participants/ Shareholders fully informed of the activities of the Bloodstock Syndicate/ Bloodstock Company, as the case may be. At no more than six monthly intervals, each Participant/ Shareholder must be provided with a written report of the activities of the Bloodstock Syndicate/Bloodstock Company however where the Bloodstock Syndicate/ Bloodstock Company has Bloodstock racing or to be raced such reports are to be issued at no more than three monthly intervals.

18.3 The Bloodstock of a Bloodstock Syndicate or Bloodstock Company must be managed and cared for in accordance with good industry practice.