Chris Burton is not only the rider but part owner in the Graf Liberty Syndicate Photo: David Webster
Owning a top class performance horse in any equestrian sport can be an expensive indulgence. With the ongoing costs, high entry fees, expensive transport requirements and professional riders needing to make a good living rather than just scraping by, the old format of rider/owner is becoming rarer.
Many riders and owners of sport performance horses around the world are looking at various options on the usual ownership. In January this year top American show jumper Richard Spooner announced he was looking at a new source of financing for his top horses through Crowdfunding on RocketHub, an interesting new concept for raising funds for top horses.
Whether this works remains to be seen however in America syndication has proved a very popular way of owning top horses and it is a concept that is spreading to many other countries
In Australia syndication has long been an accepted way of horse ownership in the racing industry. Put simply, syndication enables a group of people to participate in the enjoyment of owning a horse at a much lower cost than outright ownership
Boyd Martin riding the syndicate owned Otis Barbotiere at Kentucky Photo: Libby Law
American eventing rider Boyd Martin is a fan of syndication and several of his horses, including the horse he took with him from Australia, Neville Bardos and his other top horse Otis Barbotiere are owned by syndicates, both with ten partners in each syndicate.
The Otis Barbotiere syndicate was formed in 2010 and most of the owners are hunting and eventing enthusiasts who got together and approached Boyd, looking to be involved with a horse and rider that could possibly wear the stars and stripes in the future
“Syndication has been a system that has allowed me to purchase horses of the highest quality without a massive financial burden on one particular individual. If the horse works out awesome, the whole crew has a fantastic time, if it’s a flop, the pain is shared (often in the owners’ tent with a few beers!)” says Boyd
Jill Martin recently told us about the Graf Liberty syndicate which owns the 3* horse Graf Liberty with Australian rider Chris Burton and we asked her if she could explain more about the process of syndication and some tips for those considering it
Jill Martin and Graf Liberty share a moment behind the scenes at competition Photo: Sally Humpston
“Chris and I met in Australia and I had already seen Danny when he first arrived at Chris's yard and liked what I saw - so it was no problem when Chris later suggested setting up a syndicate to own Danny” says Jill and she suggests the following
Tip 1: Ensure you are able to get on with the professional rider – you don’t have to be best friends, but it is much better that you can communicate without problem
As a prospective first time event horse owner, I didn't really want to take on the commitment of ownership/costs etc alone. For my part, an important factor was Chris retaining a quarter share which gave me confidence that the horse had potential.
Tip 2: It is always good to canvass the thoughts and suggestions of knowledgeable people who tell it like it is!
I had no previous knowledge of where to start to find out the many things that should be considered - so I asked a couple of good friends who had been involved in eventing for many years - one an Agent and the other an owner of top event horses for many years.
Another good source of information was speaking with a chap who ran horse racing syndicates - this was the first time I had realised syndicates usually had an agreed shelf life on how long they would run.
Tip 3: Be aware that the initial excitement can be overtaken when the reality of the commitment required is taken into account.
I had spoken to a couple of good friends about coming on board and had lined up a syndicate of four members - but unfortunately one pulled out later on.
Chris then suggested his long time friend and supporter Ian Timmis take the last share. I had not met Ian before, but it has not been a problem, especially because the Syndicate Agreement sets down the important factors to keep everything running smoothly.
Tip 4: Never assume your horse will win or get placed and don't raise your expectations of your share of any prize money buying you a slap-up meal - a Big Mac is more likely to be the reward unless you are fortunate enough to win a big event.
One of the hardest parts is deciding what to include in the Agreement. It is important to look at all aspects - not just the fun part of what to do with all the prize money you may win (or not!).
So consider:
- How long do you want the agreement to run for? Usually 2 years is the norm but other factors can influence this decision.
- What happens if one member wants to leave the Syndicate early? Do they have to offer their share to the other syndicate members first? How will the value of the horse be calculated?
- Running costs - are these to be paid pro-rata each month or can the rider calculate a fee to cover all the costs with the same to be paid by 12 monthly payments. Useful if you want to have some idea of what the monthly outgoings will be and easier for the syndicate members, but harder for the rider to make sure his riding fees and other costs are covered.
- Bear in mind there will likely be some extraneous costs over and above the monthly fee such as vets fees and other incidentals not covered by insurance.
- Who will administer the Syndicate? It doesn't do to expect the rider to keep in touch with all the syndicate members, so appoint just one person to liaise with the rider who keeps the others informed.
- Insurance - do you want take out cover and if so, what do you want to cover? Perhaps you want to insure in the event of Veterinary fees (can be costly) and death, but what about loss of use if the horse is unable to continue to compete?
- Who makes the decisions about where to run the horse? This can be important if syndicate members are spread out geographically and want to take along friends and family to watch the horse run at an event near them. It isn't possible to suit everyone so who has the final say?
- Prize money - the professional rider will take a percentage of prize money as agreed, but what about the remainder? Do you divide this up each time your horse is placed or save it as a nice surprise at the end of the season?
- If your rider is from Overseas – what happens if they decide to return home?
- As the time nears for the Agreement to come to an end - consider that it could take time to sell a horse if that’s what you wish to happen. It might be worth including a meeting, say six months before the end date to consider what all the syndicate members would like to happen. Perhaps you are all agreed the horse is to be sold - in which case consider how you will value the horse to determine its market value. Or maybe you agree to keep the horse and let the Agreement run on after the expiry date.
One thing is for sure is, the more details and possible eventualities are covered in the Agreement from the outset, the happier the syndicate will run.”
Many thanks to Jill for her input and we’ll bring you more information and opportunities on eventing horse syndication soon
