Horse Racing Financials
Get answers on costs to own with In The Money Racing partnerships
How much does it cost to own a racehorse with In The Money Racing partnerships?
What is the minimum investment?
It depends on the individual horse opportunities available, so the minimum dollar amount will vary. Typically, a 5% investment in one horse ranges from $400 to $1,300 plus the first quarter estimated expenses related to the horse.
What are the ongoing expenses?
The average cost to maintain a horse is approximately $40,000 and $50,000 per year. Each partner is responsible for his or her ownership pro rata share of the expenses beginning with the first day of ownership.
Estimated costs are as follows:
Trainer $95-120 per day
Veterinarian $150-500 per month
Blacksmith $120-200 per month
Transportation $1,000 per year
Mortality Insurance Annual premium 4-5% of horse’s acquisition cost
Ongoing Business Costs $300 per month
About how much will my quarterly invoice be?
A typical expense invoice for a 5% ownership share is around $500-600 per quarter (assuming the horse is in training at the racetrack and has earned no purse money)
When will we receive race purse distributions?
When money in the partnership’s account exceeds the upcoming quarter’s projected maintenance expenses. Under normal circumstances, if a large purse is won, a distribution is made to the partnership members.
What happens to my investment at the end of the partnership?
If the partnership dissolves due to a sale or claim, then you would receive your pro rata share of sales proceeds after all expenses associated with the partnership have been paid. If the horse is retired after is racing career and does not have residual value as a breeding prospect, after all expenses are paid, any remaining money in the partnership’s account will be distributed based on your pro rata share.