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Syndicate definition
Syndicate definition






syndicate definition

SYNDICATE DEFINITION PROFESSIONAL

Horses owned by a syndicate are typically carefully managed by an equine professional with appropriate knowledge and experience. And if one horse suffers a career-ending injury, the investor has not lost her entire investment because she has also invested in other horses. If a prospective horse owner has a limited pool of money to invest in horses, and spreads that investment over several horses via syndication instead of purchasing a single horse, the result is that the investment has a greater chance of being successful than just one horse. If ten friends join together to purchase one horse instead of each of them purchasing one horse on their own, they would each have one-tenth of one horse’s expenses instead of 100% of one horse’s expenses. Syndication also allows owners to reduce the ongoing costs of horse ownership. Pooling resources means more purchasing power – ten friends may each be able to afford a $20,000 horse, but if all 10 of them join together, they can afford a $200,000 horse.įor a person who owns a horse outright, syndicating that horse can be a way to generate cash to promote and/or compete the horse and thereby increase its value. Syndication can provide the capital for several individuals to purchase a horse that would otherwise be beyond their means. Potential Advantages of Equine Syndication Syndicated horses can be stallions, mares or even geldings. Today, syndicates are most often formed to co-own racehorses, breeding stallions and highly valuable show horses. In the 2000s, syndication of eventing and dressage horses became quite popular, especially with horses imported to the United States from Europe.

syndicate definition

When those tax advantages largely disappeared with revisions to the Internal Revenue Code, the popularity of syndicates in the horse industry steeply declined. In the 1980s, syndication became very popular for show horses, particularly Arabians, as well as racehorses because of certain tax advantages available to syndicate share owners. Unfortunately, Funny Cide was a gelding and was unable to continue making money for his owners in the breeding shed. Funny Cide went on to win 11 races out of 38 starts, including 5 graded stakes, earning $3,529,412 over a 5-year race career. After a bit of success that added money to their “pool,” they teamed up with trainer Barclay Tagg in 1999 who purchased Funny Cide for the group for $75,000 in 2002. Ten friends formed “Sackatoga Stable” and chipped in $5,000 each to buy their first racehorse.

syndicate definition

Funny Cide, who won the Kentucky Derby and Preakness Stakes in 2003, is a great example of a group of friends who pooled their resources to purchase a promising 2-year-old Thoroughbred. The various forms of syndicate co-ownership are discussed below.įirst popularized in the Thoroughbred racing industry, syndicates were historically formed as a way to finance the cost of racehorse ownership and spread the business risk of racehorse ownership among multiple investors. The main purpose is to share the cost of purchase as well as the ongoing costs needed to maintain the horse. There are several kinds of syndicates, but the basic principle is that people who buy into the deal become co-owners of fractional interests in a racehorse, show horse or stallion, as the case may be. In the horse industry, a “syndicate” generally refers to a group of people who come together to purchase shares in a horse. The Merriam-Webster dictionary defines “syndicate” as “ an association of persons officially authorized to undertake a duty or negotiate a business,” and further, “ a group of persons or concerns who combine to carry out a transaction or project.” Merriam-Webster also defines “syndicate” as “ a loose association of racketeers in control of organized crime,” but that’s a topic for another day. Are you intending to purchase and co-own the horse with a small group of people? Are you intending to sell shares of ownership interest in the horse after you purchase it? What is the goal of the ownership group? First, we’ll discuss how the word “syndicate” became popular amongst owners in the horse industry then we’ll discuss the differences between syndications and co-ownership. The short answer is, “That depends.” We’ll need to know more about your situation before we can recommend a solution for your needs. Equine Legal Solutions has seen a steady increase in the number of buyers contacting us about purchasing a horse for “syndication” and wanting to know if we have a form that will work for them.








Syndicate definition