The launch of the new micro-ownership company in Great Britain and Ireland | horse racing news

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Syndicated ownership in Britain and Ireland has a major new player, following Tuesday’s launch of MyRacehorse, a spectacularly well-funded micro-ownership venture that got off to a dream start in the US when it owned part of the Derby winner of Kentucky 2020, Authentic. He now looks to become a major player on these shores from a permanent start, with three as-yet-unnamed juniors in training in John Gosden, Andrew Balding and Joseph O’Brien.

“We’re here to add to the racing industry,” Jules Pittam, its managing partner in the UK and Ireland, told Front Runner, “enabling people to buy shares of world-class horses with some of the best trainers in the world. world and hopefully get them involved. a journey that they will be able to enjoy through the digital experience, enjoy that feeling of owning elite racehorses and running in the best races.

“It’s mainly elite horses, that’s our goal. Getting access to elite horses is difficult because most syndicates tend to go mid to low range, but we’re aiming straight for the top.”

That ambition shows in the prices paid at auction last year for his three horses, totaling more than £800,000. And this is just the beginning, Pittam says. He expects the group to have 15 to 20 horses in his colors by the end of the year, increasing to 50 by the end of next year.

He declines to name those who are funding MyRacehorse, but describes them as “experienced investors who like the idea of ​​the business and the potential opportunities for growth, not only in racing but in other sports as well.” He points out that Andrew Rosen, founder of fashion brand Theory, is a partner in MyRacehorse in a son of Dubawi.

But it will be difficult to repeat the success of Authentic, right? Even the fabulously wealthy can find it difficult to achieve high-level success after decades of investment.

“There are going to be some disappointments, no doubt about that. That’s racing. But history shows us, through our stats in the US of racing on the biggest days, aiming for the best prize in cash and potentially continue a career as a breeder.

You can buy a share in the more affordable of MyRacehorse’s two years for £89, the kind of sum that allows a much wider circle of people to get involved in ownership than in the past. Of course, that doesn’t give you much: you’d then have a 0.025 percent stake, to be exact. Perhaps as many as 3,999 people would have the same right to the horse as you.

The filly in question, by Zoffany and Toi Et Moi, sold for €170,000 at auction in September. That equates to just over £140,000 at current rates, so MyRacehorse allows itself a significant markup here. If they sold 4,000 shares at £89, that makes £356,000 and it’s a similar story with the other two horses.

‘The goal is to be transparent’

Even factoring in all the subsequent costs, like years of training fees and vet bills, MyRacehorse seems to have provided a healthy margin. But the numbers are there for all to see on their website and it is a new company that makes no secret of its intention to make a profit.

“The goal is to be transparent and the margin we are charging, net of any costs, we think is very reasonable,” Pittam says.

“The BHA has been absolutely fantastic from the get-go. They were very clear and concise about what we could and couldn’t do. They love that we bring transparency and governance. They are incredibly understanding.

“Every day, we update our table of shareholders. The BHA wants to see transparency in the industry, so we have taken the lead and will post it to the BHA on a weekly basis.

“When you buy a stock, we break down all the costs for you, so you can see what’s going on in training, vets, what’s in our due diligence and management fee, what the horse is worth.”

Edward Whitaker (racingpost.com/photos)

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Heartache and its winning syndicate members after winning the 2017 Queen Mary Stakes

Heartache and its winning syndicate members after winning the 2017 Queen Mary Stakes

Edward Whitaker (racingpost.com/photos)

Interestingly, MyRacehorse is working on a secondary market, which will make it possible to sell shares. Pittam, whose background is in the financial markets, says this will demonstrate the true value of a share in a particular horse at any given time.

“If you buy a share for £100, the horse runs wild, we’re going to match buyers and sellers and you can sell the share at a higher price and buy something else or withdraw your cash.” He expects the idea to become a reality in the second half of this year. “Things can change, it’s technology, it’s not easy.”

The MyRacehorse website has an extensive FAQ section that includes the following: “If the horse is ultimately profitable, compared to the cost of purchasing the horse, training, maintenance, and other costs associated with the operation of the union, you can expect to receive a dividend.”

Some of the thousands who bought Authentic ahead of its Kentucky Derby glory moment were apparently surprised to learn they wouldn’t get a share of the prize money. “That was made clear in the offer,” Pittam says. “Although some people were disappointed, they did not read the offer in detail.” He believes the horse’s stallion fees will eventually encourage investors in Authentic.

Even if your horse fails to perform at that level, Pittam and his colleagues aim to make sure you get the most out of the experience. “It’s about keeping those updates, so they can feel proximity and involvement, as close as we can, like you own 75 percent. And in the digital world, that’s a lot easier than it was. Content It’s really important to us.”

He hopes MyRacehorse can help the sport expand its audience. “There’s an inner circle of people who are desperately interested in racing and then there’s the casual racing fan. We’re interested in both and we want to widen that circle, so we’re reaching out to all of those people.”

“A lot of people go to race in Britain at least once a year and we want them to go, feeling like they have a stake, that they really care about that horse, they’ve been through the ups and downs. It’s the democratization of the sport, if you will. Instead of all the best horses being owned by people with deep pockets, this is an opportunity for the best quality horses to be owned by anyone who wants a fractional share.”

The Front Runner is our latest email newsletter available exclusively to Members’ Club Ultimate subscribers. Four-time Race Reporter of the Year winner Chris Cook offers his take on the day’s biggest stories and tips for upcoming races every Monday-Friday morning.

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