Sole proprietorship requires one individual to invest not only the actual purchase price of the horse and the daily training fees (which range from $65-$125 per day), but also vet, farrier, dentist, bloodstock agent (buyer) , insurance, legal, accounting, silk/name registry, equipment, entry, and jockey fees. In other words, it can be very expensive to buy a horse on your own!
Therefore, it has become more and more common over the past few decades to see groups of individuals splitting these costs by forming a partnership. Through a limited liability company or general partnership, groups of individuals can minimize personal financial liability and the prohibitive costs of total ownership and still enjoy the thrill, romance and mystery of the “sport of kings”.
Horse partnerships are available in 5%, 10% and 25%units. On going fees as described above are billed quarterly according to the percentage purchased. Media Thoroughbred Group can provide smaller or larger percentages upon request. The average cost per quarter for 5% is about $600, 10% about $1200, and 25% about $3000.
Most partners tell us these fees are comparable to what they spend per quarter on other hobbies such as golf, tennis, hunting boating and fishing, skiing, following their favorite organized sports teams, or just vacationing.
Participation in horse partnerships requires that you understand that - much like these other hobbies and travel experiences - regardless of whether you have the time of your life or the worst experience ever, there are no refunds waiting at the end of the event. So...don't ask for your money back in Tahoe if you don't ski well and don't ask us for a refund if your horse doesn't win...!!
Media Thoroughbred Group utilizes the legal and accounting services of firms and individuals who have extensive experience in the handling of horse partnerships. We are committed to treating each and every partner’s interest as if it were our own. Our involvement in numerous partnerships with a variety of individuals and companies over the past decade has given us much insight into the proper handling of the entire partnership experience.
Each individual partnership is a limited liability company or a general partnership with an operating agreement drawn up by Walt Robertson, Jr., son of Fasig-Tipton president Walt Robinson, Sr., with Stites and Harbison in Lexington, Ky. Each entity is then registered with the Secretary of State. We believe that our claiming clause - which provides financial compensation towards future purchases in the event that a horse is placed in a claiming race and claimed - along with our owner incentive and referral incentive opportunities, makes a partnership with Media Thoroughbred Group unique and attractive to perspective participants.
You will be provided with a Form K-1 representing your ownership and share of income or loss on a timely basis. This Form K-1 will be prepared by our Certified Public Accountant at the accounting firm handling the financial books for each partnership.