How to become a racehorse owner without breaking the bank (2024)

With the horse racing season in full swing, we look at ways to share in a competitor's success – without breaking the bank.

Owning a racehorse is not just for those in elevated social circles – sports fans on more limited budgets can get involved too, combining the thrill of the racetrack with the remote possibility of making a profit.

According to the Racehorse Owners Association, more than 60 per cent of racehorses trained in Britain are in some form of joint ownership, syndicate or partnership.

With these you get the fun of being an owner – visiting the training stables, watching your horse being exercised and cheering it on from the members' enclosure – without the six-figure investment.

A syndicate is when a number of people join together to share ownership. In most cases, owners pay an upfront sum plus monthly maintenance fees. Training, racing and veterinary costs add up to about £28,000 a year per horse.

Syndicates make money if their horse wins or gets placed in a race, or if it is sold on in the future either for more racing or breeding.

James Prosser at tips website My Racing says horse syndicate costs vary hugely, depending on the quality of the horse involved.

He says: 'There are two main options for entering a syndicate – leasing and buying. With leasing, the original owner of the horse retains ownership, but the syndicate pays a fee to run the horse in its name and keeps any prize money.

'With buying, the horse belongs to the syndicate. This means it can be sold on in future or sent to stud and money earned from breeding. But it is more expensive.'

Simon Bridge, of syndicate On To A Winner based in Yorkshire, says buying a 2.5 per cent or 5 per cent share in a horse is a typical entry point.

This will set you back about £500 to £3,000 upfront, with training fees starting from about £130 a month.

Bridge says: 'A 5 per cent share will get you two badges at each race meeting where your horse is running and 5 per cent of the syndicate prize money – the jockey and trainer get 10 per cent and the rest is shared between syndicate members.

'If the syndicate sells the horse you will get 5 per cent of the resale value. In some cases this can be big money – last year we had a horse we bought for £18,000 which we sold to a major player in the market for a six-figure sum.'

Another well-known syndicate is Lincolnshire-based Middleham Park Racing, which typically has up to 20 owners per horse.

Costs vary but there are often opportunities to get involved from £350 to £500 upfront for a 2.5 per cent share with ongoing monthly maintenance fees starting at about £80.

Partner Tim Palin says: 'When your horse is placed, all winnings are allocated to syndicate members at the end of the season, based on their percentage share.

'If your horse is particularly successful, we may be approached by potential purchasers and if members decide to sell, any subsequent sale proceeds are shared between them, again based on their percentage holding.'

Owning a racehorse is most definitely a gamble, not a serious investment. The expected return is low and only a few horses will turn out to be superstars.

Alan Bright of Tuite Racing in Berkshire says: 'We make it absolutely clear to those buying into syndicates that this is not an investment but a way to experience horse racing at an affordable price.'

Some horses owned in this way have done well. Tuite Racing's 2015 syndicate horse, Field of Vision, cost £11,000 and won his owners more than £72,000 in prize money. As a result the owners unanimously agreed to keep him in training for another year.

As well as making joint decisions about a horse's future, syndicate members get exclusive stable yard tours, access to watching their horse gallop, and entry at racecourses around the country.

Syndicate membership is fun but does involve financial commitment. The Racehorse Owners Association advises anyone signing up to be absolutely clear on the costs, duration of the syndicate, liabilities and management.

The association's chief executive, Charlie Liverton, says: 'There will always be an element of financial risk attached to racehorse ownership but a lot will depend on what you are hoping to get out of the experience.

'A horse will probably run only about five times a year and they're not machines, so think about what is important to you such as regular communication, visits to the yard to see your horse, and ensuring the syndicate manager or trainer is clear and transparent about any associated costs.'

Further guidance on syndicates can be found at the Racehorse Owners Association's website along with a free guide to racehorse ownership.

Potential owners should not be afraid to ask questions such as how often they are welcome to visit the stables, whether the horse is insured and how often updates will be received on its progress. It is also important to find out what happens if a syndicate member falls behind on the monthly training fees.

Not all syndicates demand payment upfront or a long commitment. Diamond Racing is one of the cheapest, enabling fans to get involved from £40 a month with a commitment of just 30 days for flat racing horses and 60 days for jumpers.

Racing enthusiasts who cannot afford syndicate shares should consider joining a 'racing club' instead. Members pay an annual membership but do not own any horses. Prize money is shared between members but the club keeps any profit from selling horses.

What you need to know each week: Listen to the This is Money podcast