Joint Ownership
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JOINT OWNERSHIP:

Be sure to select they type of joint ownership that should work for you. This is a growing segment of the horse business. Purchase prices of the horses or the stud fees if you are breeding, and costly maintenance bills which are often high, give you a cost basis for calculating your share of joint ownership.

 

 

Subject Advantages Disadvantages Notes
Partnership - Limited You are limited as defined in the contract. You maybe considered a Passive participant. Often no worries but no voice in decisions.
Partnership - General Privileges and fame come with liability. You are liable for things and must insure to be safe. You are usually considered an active investor.
Co-Ownership Managing You make decisions and can become a famous hero because of the horse, with the rest of the team doing most of the work. You are never really a big hero if you made a proper, great decision, because the horse will always be the hero. It is never the horse’s fault. You can always blame the Jockey or the Trainer. It helps pass the buck.
Co-Ownership Co-Managing If you can agree with the other Co-Manager, it is fun and two heads are better than one. The conflicts can be enormous. Often the horse and a good team actually manage the horse.
Co-Ownership Non Managing You just sit back and, however it turns out, you can enjoy this wonderful business. You may wish you were the manager because the one in charge is dumb. It is sometimes much better to let the ones who know what to do, run the show.
Large Groups

Major Participant

You enjoy the business as an owner and are treated as a king for less than it cost you to own alone. You very little say and may be paying a large portion of the overall costs of the business. Sometimes, it is nice to be a big shot and if you have a famous horse it is even nicer.
Large Group Minor Participant You put in a small investment and relax enjoy the business as an owner. You may not like the way the management is doing things and you have little or no say. You may be judged a Passive Investor by the IRS.
Established Groups They have a track record to judge their ability. They may have been lucky and used up their luck. The group may have industry contacts you could never have.
Your Own Group Friendly and enjoyable because you are with people you like. A horse can ruin a friendship, especially a good horse. The places you can go, the fun you can have and still write it off are perks.
Friends and New People It is a great way for friends to get together and to meet new people. Racing can bring out a side of people in general that you never imagined possible. You may get your children married off to some very nice and very rich folks.