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The following outline coupled with additional tables with
notes, are a guideline for New Owners to consider. This outline is designed
to assist New Owners and reflects only some considerations that people
wishing to enter the thoroughbred business should find a valuable asset in
their personal thought processes. It is presented in this outline form to
furnish a simplified way for viewing various ways in which a prospective
thoroughbred investor may make his entry into the thoroughbred business.
These notes reflect the thoughts of the writer, Robert S.
Fox and are just some of his concepts of things to consider before entering
the world of thoroughbred racing, breeding and selling.
PURCHASING RACEHORSES:
- Mare’s In Foal - Consider Age of
Mare, Who they are in Foal to, Sales History and Conformation
- Weanlings
- Sire, Conformation and Growth History of Sire’s Offspring are
Significant
- Yearlings - Sire, Conformation and
Final Usage are Important
- Two Year Olds - Sire, Female
Family and Workouts are an important buyer consideration
- Racehorses at the Track - Level of
competition and Soundness are important considerations
BREEDING APPROACH TO OWNING RACEHORSES:
Breeding to Race
- State Breeding Programs - Many
State Programs have great Bonus Awards
- Stud Fees - Often Fees are
determined based on non related factors
- Commercial Considerations - State
Programs can limit, or sometimes enhance, commercial sales values
Breeding to Sell and Race
- Sales Companies - Pick the place
and company that can do the most for you
- New Stallions - Maybe the
continuation and improvement of the line
- Conformation - Consider the
physical traits and what they impart
- Trends - What’s hot today can be
cold tomorrow
CONSIDERATIONS:
- Money Consideration - Spend what
you can afford to lose
- Tax Benefits - The type of
investment that can help you get some tax relief
- Enjoyment Factors - Do what you
feel you will enjoy most
- Business Motives - Making money it
is a vital consideration
SUCCESS FACTORS:
- Selling as a Determination for Success
- Good sales can be a determination of success
- Stallions from the Racetrack to the Breeding
Shed - A Stallion of your own is a bonanza
- Winning Races - A wall of win
pictures can be a measurement of success and enjoyment
JOINT OWNERSHIP:
Partnerships - Tax information is
provided by the General Partner for the Entity
- Limited - Liability is usually
limited and ownership is often passive
- General - Liability is not limited
and ownership is often active
Co-Ownerships - Individuals are
responsible for own taxes and are active owners
- Managing - One usually makes the
decisions
- Co-Managing - More then one makes
the decisions
- Non
Managing - This individual makes no decisions
Large Groups
- Major Participant - Often is very
active and usually has the most money involved
- Minor Participant - Often has
little or no say in decisions
Group Racing and Breeding
- Established Groups - Many have a
proven track record or successful approach
- Start Your Own Group - You can
have a group of friends and be restrictive
- Friends or New People - Select
whether your venture should be with friends or new people.
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