How to own a racehorse

How to own a racehorse

WELCOME There’s nothing like owning a racehorse – to watch your magnificent animal race towards the finish line is a magical experience – that’s why it’s known as the ‘sport of kings’.

Fortunately, you don’t have to be royalty to be part of this exciting and potentially rewarding industry and sport. Many people, from all walks of life, become successful racehorse owners.

And you don’t need any experience – just a passion for the sport and the ability to support your racehorse through the losses as well as the wins.

Many first-time owners join or form syndicates, and owning a racehorse becomes their hobby. This is a great way to start because it gives you a taste of the racing industry without committing huge amounts of money.

This manual takes you through the steps (and options) of how to own a racehorse. It is very simple, and provides basic information and a number of contacts in South Australia to help you make the right decisions.

We hope to see your racehorse in the Winner’s Circle soon!

CONTENTS 1. Before buying a racehorse Finding a trainer Choosing a trainer Questions to ask a trainer Training fees Fee breakdown

6 6 7 9 10 11

2. Buying your racehorse 12 What to look for 12 Ages of horses 13 Horse sales 14 Yearling horse sales 15 Bloodstock agents 15 Sales catalogues 16 Syndicates 18 Syndicate Manager 19 Tried racehorse sales 20 Insurance 21 3. Owning your racehorse Preparing your horse for racing Selecting a jockey Registering your race colours At the racecourse Race day tickets Club membership Prize money SABOIS qualification Ownership success stories

22 22 23 24 25 26 26 27 28 29

4. Leasing a racehorse How a racing lease works Finding a horse to lease The costs of a racing lease

30 30 31 31

5. Selling your racehorse 32 Reasons for selling your racehorse 32 Breeding 33 6. Glossary

34

7. Useful contacts

39

before buying a racehorse

Finding a trainer Right, let’s get started – the first thing you need to do is find a trainer. Horses do not make it to the track on their own; they need training, guidance, and a lot of love and attention.

It’s no use buying ‘the next Adelaide Cup winner’ if the proper training programme hasn’t been organised.

Plus, a trainer can help select a horse that has a good chance of earning you a return on your investment.

6

Choosing a trainer Finding a trainer is easy. Deciding which one is right for you takes a bit of consideration – you need to do your homework. Look at their track record: the horses they’ve trained and the success they’ve had.

The ‘Trainers Premiership Tables’ are a good source of information about the performance of trainers in a current season.

Thoroughbred Racing SA maintains all Training Premiership Tables and they can be viewed by visiting www.theracessa.com.au

Often, trainers at the top have more horses, and, therefore, more results, but their strike rates may not be as high as trainers lower on the table.

7

before buying a racehorse

Questions to ask a trainer Finding a successful trainer is one thing, but you also need to find one you feel comfortable with – communication between you and your trainer is very important.

As an owner, you would no doubt expect to be kept regularly informed about your horse’s progress and be involved in any decision making.

This requires a trainer with good communication skills, and one who regards the working relationship between trainer and owner as a positive thing. Mind you, communication is a two-way street, and you need to express any requirements you may want for your horse.

Here are some questions you may wish to ask a potential trainer. If you’re happy with the responses (and have checked out his or her credentials), the odds are improved that you’re going to love owning your racehorse.

• What is your communication method (newsletters, text messages, emails, faxes or phone calls etc) regarding the horse’s progress?

• Can I see my horse when I like (e.g. before a race or when it’s not racing)?

• Where do you prefer to race your horses?

• Where will my horse be based when it’s a) in work, and b) spelling?

• How many horses do you have in work?

• What are your training fees?

• Do you charge any extras, such as veterinary fees?

• What type of horses (sprinters, stayers, jumpers, younger or older) have you had the most success with?

9

before buying a racehorse

Training fees Training fees differ greatly within South Australia and across the country. They depend upon the success of the trainer, the training facilities and their location. Metropolitan trainers generally charge a higher fee than those who operate from country regions.

The following are average annual and daily training fees and are indicative of 100% ownership only: Metropolitan trainer $35,000 (annual) / $95 (per day) Provincial trainer $25,000 (annual) / $68 (per day)

10

Country trainer $15,000 (annual) / $40 (per day) If you or your syndicate owned a 10% share then your costs would be 10% of the training fees for your horse.

Fee breakdown During your horse’s racing career, there will be times when it’s ‘in work’, which means it is being raced or being prepared to race. But a horse can’t maintain this level of training intensity indefinately, and needs rest periods, commonly referred to as ‘spells’.

While your horse is spelling, it will generally spend time out in a paddock, giving it time to relax, recover from any injuries and recuperate mentally – much like a holiday.

Often younger horses are given an extended spell to help them to mature physically. As a result, costs vary while your horse is in work or spelling.

The following costs are indicative only: Spelling Approximately $15-$25 per day depending on the property and the level of service provided (plus expenses for veterinary and other charges).

In Work Usually around $40-$95 a day (The cost is greater because your horse is being prepared to race. It’s more labour intensive and includes things like track fees, nominations, transportation, track rider costs, feed and general training).

11

buying a racehorse

What to look for Different people look for different qualities in a horse, depending upon the type of horse they want. The important thing to look for is the conformation of the horse (straight, good looking joints etc).

Your trainer will be able to explain your options, and make suggestions about which horses look good for you.

12

Note: It would also be worthwhile asking if a horse is SABOIS Qualified (see page 28) because that can contribute to the horse’s earning potential in South Australia.

Ages of horses One of the decisions you’ll have to make is the age of the horse you want to buy.

Weanling

Two-Year Old

A horse that is less than 1 year old and has been ‘weaned’ or removed from the care of its mother. A number of horses are sold as weanlings but this is not as popular as yearling purchases. This is because they don’t reach the track for quite some time and aren’t physically developed enough for potential owners to know if they will grow into good racehorses.

Once a horse turns two, it may be raced in specific events (subject to the rules of racing). Horses with certain pedigrees are seen to be more mature, both physically and mentally, to cope with training and racing at an earlier age than others.

Yearling As the name suggests, a horse that is 1 year old. Yearling sales are conducted across Australia and create huge interest from potential buyers, sellers and the general public. Yearlings are old enough to be assessed physically and with respect to their pedigree, but have not been ‘broken in’, so their racing ability has not been tested.

Three-Year Old & Up Most three-year old horses are physically developed and able to handle the demands of regular racing.

Racehorses can race up to the age ten and sometimes beyond, depending on health and performance.

13

buying a racehorse

Horse sales A common way to buy a racehorse is at a horse sale. They are held at set times throughout the country. Anyone can attend a horse sale, including your trainer and/or veterinarian so don’t forget to invite them along.

A horse sale is a public auction, and you are free to bid on any horse as long as you have the finance available.

Generally, sales companies require financial approval before you can bid at a sale – this is called ‘registering to bid.’

14

If you’re a successful bidder (congratulations, you own a racehorse!) payment is required before your horse can be removed from the sales complex.

Usually, an arrangement is made with your trainer for next-day transport to his or her training facility.

Yearling horse sales

Bloodstock agents

Each year, there are a number of horse sales conducted across the country. Yearling Sales are the largest sales conducted in South Australia.

Bloodstock agents are given the authority to buy and/or sell horses on behalf of owners. They have significant knowledge and experience to offer opinions regarding pedigree, conformation, and characteristics of a horse.

Many trainers and syndicates also purchase horses from New Zealand, where major sales are conducted on an annual basis at Karaka.

Magic Millions currently conduct regular thoroughbred sales in Adelaide across the calendar year.

A list of personnel registered by the Federation of Bloodstock Agents can be found in sales catalogues or at www. bloodstockagents.com.au

15

buying a racehorse

Vendor

Sales catalogues Approximately three months prior to each major yearling sale, a sales catalogue is released. These catalogues provide extensive details about the pedigree of each yearling being offered.

Information includes how many runners, winners and Black Type winners the family has produced, the race and progeny record of a sire, and other essential information to help you make a decision.

The opposite page is an excerpt from a typical Sales Catalogue.

Additional Bonus Prize Money Available (for qualified horses) Sire (Father) Name and birth date Dam (Mother) Name and birth date Sire details Includes race and stud records Dam details Includes race and stud records Sibling details Includes race records Female family details Includes race and stud records

16

Identification brands These identification markings appear on a horse (to make sure you are looking at the right one). In this example, APM on the right shoulder is the identification brand of the breeder - a bit like a personalised number plate. The number 7 means the horse was the 7th foal born at the stud in 2003 (indicated by the number 3). Both numbers appear on the left shoulder of the horse, the foal number above the year of birth.

Family tree For example the sire of this horse is Reaan.

Reaan’s parents are Hussonet and Ribe, etc.

Pedigree Family performance details; • Bold capitals indicate a win in a feature race • Bold lower case indicates a place in a feature race.

17

buying a racehorse

Syndicates If the initial costs of buying and training a horse seem insurmountable, joining a syndicate is a great way to make the process a lot more affordable. By sharing the costs, you and your syndicate partners can enjoy the thrill of owning a racehorse without investing large, individual sums of money. Of course, you also have to share winnings!

A syndicate can consist of up to 20 members (including other syndicates).

It has to be registered, and there can only be one Manager.

You can derive as much fun from owning a small share of a racehorse as you can from being the sole owner.

18

A good thoroughbred racing industry website offering horses for syndication is www.ttsc.com.au

Syndicate Manager The Syndicate Manager is responsible for managing the finances of the syndicate, and reports to each of its members on a regular basis. Any Prizemoney is sent to the Syndicate Manager for them to distribute to the syndicate members.

buying a racehorse

Tried racehorse sales Yearling Sales are a great source of well-bred racehorses, and there are many benefits that go along with that. (See ‘Breeding’ on p43). But, the costs can be quite high, and your horse won’t be ready to race for quite some time.

By comparison a Tried Horse Sale can sometimes be less expensive than a Yearling Horse Sale. As the name suggests, it is a sale of racehorses that may have had racing experience.

However, it is recommended the expertise of a trainer be sought, as racehorses rarely come back from serious injury. Most horses bought at Tried Racehorse Sales will not reach the higher levels, and, more often than not, it’s a case of ‘smaller investment smaller reward’.

20

For more information about Tried Horse Sales, visit www.magicmillions. com.au

Insurance Horses are a significant investment, and Bloodstock Insurance is readily available to insure against death and serious injury of your horse.

Insurance policies have also been developed to cover transit and a number of other issues related to breeding.

Please ensure you read the Product Disclosure Statement (PDS) in respect of any insurance policy you may consider.

owning a racehorse

Preparing your horse for racing Okay, you now own a horse - let’s book it into the next race at Morphettville! If only it was that easy.

Realistically, it will be some time before your horse makes it to the track. Before a yearling can race, it must be broken in. This process usually takes a couple of months and involves teaching the horse many skills: turning, stopping, wearing a saddle and, ultimately, having a jockey on its back.

It also learns how to follow the runningrail of a racetrack, gets accustomed to the starting gates and generally learns its trade. Once your horse is broken in, it’s usually sent for a spell before being brought back in work for racing preparation.

22

Injuries can delay or even end your horse’s racing career. Some physical problems can be avoided by critically assessing the conformation of your horse before purchasing. Trainers and bloodstock agents can help you buy a sound horse.

Of course, you may have bought an older horse that’s already in work – if so, enjoy the experience.

Selecting a jockey It may seem obvious, but your trainer will recommend or select a jockey he or she feel’s will give your horse the best chance of winning.

Different jockeys have different styles and some work better with certain types horses than others. Finding the right match is a very important factor in your horse’s success.

Weight is another consideration when choosing a jockey. Your horse will be given a weight handicap for each race (unless running in a race where weight is based on gender or age). Some jockeys are too heavy (even if it’s only by a kilogram) and cannot make the lighter weights in handicaps.

Conversely, if your horse has been given a larger weight handicap, your trainer may opt for an apprentice jockey. An apprentice jockey has less experience, but,

because of this, is often (but not always) able to claim a reduction in the weight the horse has to carry. An apprentice can claim up to 4kg depending on whether it’s a Metropolitan, Provincial or Country race. As an apprentice wins more races and gains more experience, the amount he or she can claim is reduced. If your horse is required to carry a large weight, choosing an apprentice jockey can often make a difference to the outcome of the race.

owning a racehorse

Registering your race colours Many horses race in the colours registered by the trainer, and a lot of owners are happy with that.

But if you wish, you (or your syndicate) can register your own set of colours for your horse to race in. If two or more owners have registered colours, it is mutually agreed which colours the horse will race in.

For more information about registering your set of colours, contact Thoroughbred Racing SA on (08) 8179 9812 or visit www.theracessa.com.au

At the racecourse It’s a very special day when your horse is at the track, ready for its first race. You are allowed to meet with the trainer and jockey prior to your horse’s race to discuss tactics. (Some racecourses require mounting yard passes which are available from the Secretary’s Office).

You will, no doubt, also want to see your horse before the race, and can do so at the horse stalls. (The stall number of your horse is in the race book).

If you’re part of a syndicate, your name won’t generally appear in the race book – your syndicate name appears instead.

25

owning a racehorse

Race day tickets

Club membership

Race day tickets can be purchased from the admission gates at all racecourses or online for selected events.

All racing clubs offer membership on an annual basis.

If your name is featured as an owner in the race book, you will usually be admitted into the racecourse free of charge. However, some clubs prefer to refund the admission cost at the Secretary’s Office.

Race day hospitality is also available, with clubs offering a variety of hospitality packages and entertainment to suit your race day needs.

Price of membership depends upon the location of the course and the number of meetings held there. Benefits vary from Club to Club, but include season admission, usually to exclusive ‘Members Only’ areas with prime viewing positions.

Membership is a good way to become involved in your local Club and help support the racing industry.

Prize money It’s fun owning your own horse, but it’s even more fun when your horse is performing well and winning you money.

The amount of prizemoney depends upon the Class (or Rating) of race, where in Australia the race is held, and whether it’s a Metropolitan, Provincial or Country meeting.

The richest races conducted in South Australia are the Centrebet SA Derby and the Distinctive Homes Goodwood, both offering $500,000 in prizemoney.

An average Adelaide Metropolitan race offers $25,000 - $50,000 in prizemoney.

In addition, SABOIS qualified horses can earn bonus prizemoney.

27

owning a racehorse

SABOIS qualification The South Australian Breeders and Owners Incentive Scheme (SABOIS) provides financial rewards to breeders, nominators, owners, trainers and jockeys over and above a race’s Prizemoney.

Every season SABOIS races are programmed throughout the state, offering over $3 million in bonuses for SABOIS qualified horses.

Horses must be nominated for SABOIS as a foal within a designated deadline.

The chances are your horse will have already been nominated if it was purchased in South Australia.

The SABOIS logo will appear on the pedigree page in the Sales Catalogue.

Keep an eye out for it because SABOIS qualified horses are eligible for a SABOIS bonus if they finish first, second or third in a SABOIS race.

For more information about SABOIS, contact SABOIS Manager, Melissa Ware, on (08) 8179 9812.

28

Your horse may be eligible for breeding and owner incentives operating in other Australian states.

You can find out more about interstate schemes by contacting the relevant states or visiting their website.

Ownership success stories Like most things, you get what you pay for, and while you usually pay a lot for a successful horse there have been many exceptions. Some relatively cheap horses purchased as yearlings have gone on to win big races and huge amounts of Prizemoney, just like these: Horse Dashitude Psychic Mick Happy Trails Torio’s Quest Basil da Man Moment in Time Finiguerra So Swift Mummify Morgan Dollar Go the Knuckle Divine Madonna

Yearling Price

Prizemoney

$5,500 $246,000 $10,000 $155,200 $11,000 $591,850 $15,000 $885,650 $30,000 $164,700 $33,000 $542,755 $35,000 $202,488 $40,000 $230,875 $41,000 $5,105,020 $46,000 $352,080 $47,000 $242,800 $82,500 $1,700,000

29

leasing a racehorse

How a racing lease works Much like forming a syndicate, leasing is a very popular way to enjoy the benefits of owning a racehorse without the up-front costs.

A horse owner - often the breeder leases the horse to a syndicate and/or individuals, and they don’t play a part in controlling the racing career of the horse for the period of the lease. Lease periods vary, but the maximum allowed is three years.

At the end of the lease, your horse is returned to the owner unless terms to renew the lease or purchase have been included. A lease may be cancelled at any stage provided all parties have signed the cancellation form and lodged the form with Thoroughbred Racing SA.

30

Breeders and trainers lease horses they wish to retain ownership of, often for breeding purposes, whilst still having an interest in its racing career. It is usually a win/win situation for owners and lessees.

Finding a horse to lease

The costs of a racing lease

A good source of information are trainers. They can usually point you in the right direction.

Apart from the cost of the lease application, payable to Thoroughbred Racing SA, currently $55 including GST, there may also be a rental involved this is a matter for the parties to negotiate.

It’s also sometimes possible to lease a horse that has been ‘passed in’ at a sale.

SA Thoroughbred Breeders can also provide contacts within the breeding industry that may be seeking to lease a filly they wish to retain for breeding purposes.

As the lessee, you are also responsible for all the training fees and associated expenses.

An owner may give you the option to purchase the horse at the completion of the lease period.

31

selling a racehorse

Reasons for selling your racehorse Horses are sold for various reasons: realising an asset, breeding, change of career, or retirement.

If your horse has been successful, you could probably sell it at a higher price at a private sale. But if your horse’s results haven’t been the best, then a Tried Racehorse Sale may be a good option.

(See ‘Tried Racehorse Sales’ on p20).

It may also be sold as an event horse to take part in equestrian events. Or, if your horse has a good pedigree, you may be able to sell it to a stud for breeding, or breed from it yourself.

32

Breeding A good pedigree and a successful racing history might mean your racehorse will be a top candidate for a becoming a stud horse in its retirement.

Stallions can attract a service fee from $500 to $300,000 or more per service, and a successful stallion can serve approximately 200 mares per season (and potentially then go to a stud farm in the Northern Hemisphere and enjoy the experience all over again).

The breeding of a mare sent to each stallion also plays a significant part in the value of the horse as a yearling.

33

glossary

Acceptor

A horse that has been Accepted by the owner or trainer to run in a race.

Apprentice

Means a rider who has been indentured to a Trainer under an agreement with Thoroughbred Racing SA to pursue a career as a professional jockey.

Bloodstock Agent An authorised agent who is appointed and given the

authority to buy and/or sell horses on behalf of owners.

He or she also has the knowledge and experience to offer

opinions regarding pedigree, conformation, and characteristics

of a horse. A list of personnel registered by the Federation of

Bloodstock Agents can be found in sales catalogues or at bloodstockagents.com.au Broodmare

A female horse used to produce foals, after they have ceased their racing career.

Clerks Of The Course

Course officials (traditionally mounted on horses) who

assemble racehorses into numerical order in the saddling

paddock, escort them to the mounting yard and provide

assistance if required whilst out on the racecourse. They also

escort the winning horse back to the mounting yard.

Colour (Horse)

Black Black hair throughout the body coat, limbs, mane and tail.

White hair may be present as markings, flecking or ticking.

Bay

The body coat may vary from a dull red-brown to a yellow- 34

brown. The mane, tail, points (lower parts of the legs), muzzle and the tips of the ears are always black.

Brown

Black hair throughout the body coat, limbs, mane and tail.

Brown hair is present on the muzzle, eyelids and often on the

flanks. The descriptions ‘bay/brown’ and ‘brown/black’ are

acceptable for horses that may be difficult to describe precisely.

Chestnut

The body coat and limbs may vary from a light washy yellow,

through golden and reddish shades, to a dark liver. The mane

and tail may be darker or lighter than the body coat. Lighter

coloured chestnuts can have a flaxen mane and tail.

Grey The body coat is an uneven mixture of chestnut, brown or black hair with white hair. (The horse’s coat does not contain grey hair). Foals have coloured hair at birth, but as they grow, white hair replaces the coloured hair, resulting in a grey appearance.

White

This colour is very rare. Foals are born white, or

predominantly white. Coloured hair may be present on the

poll, ears, or tail. Tufts or patches of coloured hair may be

present on the body.

Colours (Silks)

The colours of the ‘silk’ uniform worn by the jockey. These must be registered by the trainer or owner(s).

35

glossary

Colt

A male horse under four years old (with both testicles).

Dam

The mother of a horse.

Entire

Any male horse four years and older with both testicles

Farrier

A person who tends to the feet of horses.

Filly

A female horse under four years old.

Gelding

A male horse with both testicles removed. Horses are gelded to moderate their behaviour and prevent them from becoming too ‘heavy’ (overly muscular).

Group & Listed Races

Commonly referred to as ‘Black Type’, these races are the most

prestigious. The Australian Racing Board sets minimum levels

of Prizemoney for Black Type races, and, therefore, they are

highly sought after. From a breeding perspective, horses that

have won these races (or that are related to winners), can

become more valuable. In a sales catalogue, winners of these

races are listed in bold print. Minimum prizemoney for Group

and Listed Races (effective 1 August 2010) are as follows:

Listed - $80,000;

Group 3 - $115,000;

Group 2 - $175,000;

Group 1 - $400,000.

Handicap

36

A race where horses are assigned varying weights, according to performance (decided by the handicapper), to equalise the chance of each horse winning.

In Work A term used to describe a horse that is being prepared for racing.

Mare

A female horse four years of age or older and still racing.

Mounting Yard

The place where horses are paraded (in numerical order) prior to each race, and jockeys - issued with their final instructions from trainers and owners - mount their horses. After each race, all competitors dismount in the mounting yard.

Near Side

Left side of a horse. A horse is always approached, led and mounted from the near side.

Scratched

A term used to describe the withdrawal of a horse from a race.

Sire

A male horse that stands at stud.

Spell

A term used to describe the period of time a horse is resting from racing and training.

Stewards

Officials at a race meeting who have the responsibility of enforcing the Rules of Racing.

Strapper

A person who attends and grooms racehorses in training and on race days. Also known as a stable hand.

Track Ratings

Terms used to describe the condition of a racing surface: Good – surface is firm; Dead – surface has give in it; Slow – surface is rain affected; Heavy – surface is very rain affected.

37

useful contacts

Useful contacts Here are the contact details of people who can answer your queries and put you on the right track to owning a racehorse: Richard Stafford Secretary SA Racehorse Owners Association (SAROA) PO Box 45 PLYMPTON SA 5038 M: 0432 664824 E: richard@sanguineracing.com.au

Melissa Ware SABOIS Manager Thoroughbred Racing SA GPO Box 2646 ADELAIDE SA 5001 P: (08) 8179 9812 E: mware@theracessa.com.au

Elaine Robertson Executive Officer SA Thoroughbred Breeders PO Box 2080 SOUTH PLYMPTON SA 5038 P: 8294 3280 M: 0419 844 502 E: satb@iweb.net.au

Executive Officer Australian Trainers Association (SA Branch) PO Box 229 PLYMPTON SA 5038 P: 8293 1137 M: 0415 337 363

Photography credits Peter Fuller Atkins Photography Lyndelle Connor

39

theracessa.com.au