What does Britain’s Queen Elizabeth, soccer star Wayne Rooney and Hollywood director Steven Spielberg all have in common? Each is the proud owner of that ultimate status symbol of wealth – a Thoroughbred race horse. Along with wine, art, and jewels, Thoroughbreds have long been the luxury investment of choice for the mega rich. However, owning a racehorse today is not just for those who move in elevated circles. There are thousands of race horse owners in the United States. They range from billionaires to middle class Americans. All are united by two driving forces.
First, is the love of the “Sport of Kings” along with the excitement their steed creates coming down the stretch.
Secondly, the entertainment journey with the chance of hitting the big return on their investment. However, a racehorse investment is not for the faint hearted. You are unlikely to make a fortune and more likely to lose on part or all of your investment.
An investment in a race horse is like investing in penny stocks. There will only be a very few the will give you a handsome return. Above all, racehorse ownership is not a regulated investment. If you lose money, there is no comeback or any way to redeem your loss. But, if you want to combine fun with the chance of hitting it big, then a racing partnership could be for you.
Today, owning a racehorse, most likely a piece of a horse, is more accessible than ever before. At the top end, you have international buyers and owners paying millions of dollars for a chance at acquiring that special stead. But, in recent years, lower down, there has been a proliferation of people becoming part of a partnership to own that small segment in the “Sport of Kings”. There are a number of avenues to participate in Thoroughbred racing. Racing partnerships have proven to be the ideal way, to maximize reward and minimize risk, for invested dollars.
The most common racing partnership consists of multiple people buying part of an unproven yearling-two year old and hoping it will become the next Secretariat or most recently American Pharoah. The cost of investing in an unproven yearling can run up- wards of $50,000 or more for a 2.5% interest. In recent years, people on the lower echelon have been able to fair as well as the buyer at the top. “I’ll Have Another”, bought for $11,000 at Keeneland as a yearling and $35,000 as a two year old in training, at Ocala has brought his owners millions. In 7 starts during his 2nd and 3rd year old season, he earned $2,693,000 and won the first two legs of the Triple Crown before being syndicated for $10,000,000 and presently stands in Japan. More recently, “California Chrome” a home bred by, two blue collar workers, calling themselves “dumb ass partners”, out of an eight thousand dollar mare and a twenty-five hundred dollar stud fee, has earned $6,322,650 and the first two legs of the Triple Crown. Will these kinds of success stories happen again? Yes, we just don’t know, to who or when.
Mapleton Thoroughbred Racing Partnership Overview
- Mapleton Thoroughbred Farm partnerships are formed to race horses bred and raised by the Mapleton Thoroughbred Farm. Every year we select the best candidate, generally fillies, in our opinion, and the yearlings are sent to Aiken, South Carolina to begin their training and then return to Ohio for their racing career. The horses are Ohio accredited or Ohio bred and competes for Ohio stakes and added money. If any horse shows exceptional ability, it can be raced outside the state for other purses or stakes (The Kentucky Derby)
- Each partnership consists of 1-5 partners. 5 partners is our maximum amount on each two year old. Mapleton Thoroughbred Farm retains a minimum of 50% of each horse.
- The partnership is expected to hopefully run 36 months and then, continue on for additional 12 month increments or dissolved.
- The partnerships are set up as a business LLC, with a K1 form given to each shareholder at the end of the year, to reflect any taxable profit or loss.