An Introduction to Taste of Thoroughbred Ownership
Thoroughbred racing is a business like no other. Nothing short of owning a professional sports team can match the prestige, excitement and exhilaration of standing in the winners circle with one of your horses. Kenwood Racing’s unique “co-ownership” program offers buyers “a taste of thoroughbred ownership”, for a one-time payment of approximately $5,000 (or less) with no additional expenses of any kind. Co-Owners share in the cash flow (race purses, sale of horses, state owners’ and breeders’ awards, etc.) while enjoying all the pleasure, perks and camaraderie of thoroughbred ownership. For about the same price (or less) as season tickets to basketball/football/baseball games, or memberships in golf/tennis clubs, you can be an owner instead of a spectator!
How it works:
Kenwood Racing packages a small group of horses (typically 2-4) and offers a limited number of people the opportunity to purchase a small Co-Ownership interest (generally 5% +/-) in the group. A 5% Co-Ownership interest would give the Co-Owner 5% of any profits or losses these horses collectively produce from the time the interest is purchased until such time as the last horse is sold or retired from racing. Under no circumstances is a Co-Owner ever required to contribute additional money beyond the initial payment. If expenses exceed income by more then the amount the Co-Owner initially paid, Kenwood absorbs the additional loss. Kenwood invests our own money to purchase these horses, sells them without markups and retains a substantial (usually a majority) interest in them, so our interests are firmly aligned with the Co-Owners. Once all of the above horses have been sold/retired, Kenwood provides each Co-Owner with an accounting of all income and expenses, along with payment for the value of their interest according to the terms of our management agreement.
Just to offer a little perspective, most racing ‘syndicates’ typically sell interests in one horse at a time at a marked up price. That’s easy to do; buy a horse for $50,000, sell 10 interests for $10,000 each, and earn a nice profit. It’s not difficult to find a horse to market to buyers; if you are selling it at a guaranteed profit for youself, there’s no need to be too picky. In our case, with our own money invested in every horse we offer to potential Co-Owners, we are very selective about what we purchase! We package several horses together, much as it’s a LOT less convenient for us, because we believe that in a high risk business people are far better served by spreading the risk among a group of horses. Our Co-Ownership program is unique in the industry and our current Co-Owners are our best references (see the "love" tab on our website for testimonials or ask us for references).