You gain much more than a nose investing in the magnificent world of horseracing

WORDS RICHARD SHAW

Alinghi takes the post
Photo: Slickpix

Just imagine the enormous thrill – not to mention the years of bragging rights and the huge injection into your bank account – that would result from being the jubilant owner of the horse first past the post in this year’s Melbourne Cup. Sure, mega-champions like Makybe Diva don’t come around too often, but owning your own thoroughbred racing machine isn’t as difficult as you would think. Nor is it that expensive.

Rob and Corinna Slade with a
victorious Alinghi
Photo: Slickpix Though racing is often dubbed the “Sport of Kings”, these days you don’t need a king’s ransom to be a racehorse owner.

A swag of high-profile Australians own racehorses, including radio host Alan Jones and larrikin advertising guru John

Singleton, and one of the best ways to join them is to enter into a syndicate arranged through a licensed bloodstock agent or syndicator.

Young horses are purchased at sales, placed with a trainer, and then shares in the horse are offered for sale. Rob

Slade, who runs Slade Bloodstock in Melbourne with his wife Corinna, says entering a syndicate is as easy as making a phone call. “People can buy a 10% share themselves or get together a group of mates, family, work colleagues or associates, form a syndicate and purchase a share,” he explains.

Lee Freedman with Alinghi
Photo: Bruno CannatelliFormerly an accountant, Rob decided to “burn his cardigans”, as he puts it, and set up his own full-time syndication business in the late 1990s. An avid race-lover who had purchased shares in a couple of syndicates himself, Rob felt he could greatly improve the standard of customer service and the experience of shareholders. Since Slade Bloodstock’s inception, the company has syndicated countless horses to its customers.

The decision to have all the horses trained with Lee Freedman, one of Australia’s most successful trainers, has meant a high percentage of Slade’s syndicated horses are doing well – between them they’ve won 121 Group-One races, including five Melbourne Cups and four Caulfield Cups. Freedman’s phenomenal success hasn’t happened by accident, says Rob. “There’s an old saying: when you’re finished with the rest, come and see the best,” he quips.

Slade’s biggest success with Freedman to date has been with a horse called Alinghi, a winner of four Group-One races, which went on to race in the USA. “She cost AU$80,000, and with shares around the AU$10,000-per-10% mark, she was an outstanding result – her gross earnings for her owners being approximately AU$6.5 million. It was simply an amazing ride for all, but especially those [seven first-time owners] having their first venture, “ Rob recalls.

Blutigeroo makes it look easy
Photo: Slickpix It’s best to enter racehorse ownership without huge expectations. Don’t think you are going to make pots of money. If you do, the gods are shining on you! You go into a racehorse for the fun of it.

Jacquie Little, wife of trainer Colin Little, began syndicating horses around 12 years ago through Jacquie Little Thoroughbreds, in response to continual requests from people visiting their beautiful Lord Lodge property near Melbourne’s Caulfield Racecourse. All horses syndicated by Jacquie are trained by Colin; their present batch includes El Segundo, one of the current superstars of Australia’s track. He’s provided a nice return on investment – AU$1.7 million – for his four owners, including former tennis player Paul McNamee.

Buying into a syndicate is very affordable, but both Jacquie and Rob warn that it’s not simply a matter of paying for your share upfront – there are also ongoing costs in owning a racehorse, like trainers’ fees and vets’ fees. “It’s important that people have disposable dollars before they dabble in racehorses,” says Jacquie. “Each 10% shareholder will also need to find around AU$3,500 per annum for the ongoing maintenance of the horse.”

A group of victorious Slade
syndicators
Bruno CannatelliPotential owners should also recognise that there are no guarantees. “Everyone loves the story of the cheapie horse that goes on to whip the expensive horses,” says Jacquie. The record books are full of examples of horses purchased cheaply that went on to win millions, and of exorbitantly expensive thoroughbreds with regal pedigrees that have been complete flops on the racetrack.

One of her present stars, Blutigeroo, which cost a mere AU$10,000, has so far netted his owners AU$1.8 million, and is currently on a mission for this year’s Caulfield Cup. But she’s quick to add that such horses are rare: “It’s best to enter racehorse ownership without huge expectations. Don’t think you are going to make pots of money,” she explains. “If you do, the gods are shining on you! You go into a racehorse for the fun of it.” Rob agrees: he prefers not to get ultra-cheap horses, saying they are mostly cheap for a reason – buying one can be very risky.

Alinghi battles it out
Photo: Slickpix Once you’re involved in a racing syndicate, often the biggest rewards are newfound friends and the endless fun of racing these beautiful animals. But follow the right advice and the fun might just become profitable! Jacquie recommends buying into a horse selected by a racehorse trainer: “These guys purchase horses that they want to have in their stables.” Rob goes one step further, adding that as well as looking at the horse’s breeding, you should also be checking the quality and track record of the trainer.

Richard Shaw says:
Currently on an extended stint in China, Richard Shaw is a photojournalist from Melbourne. A long-time devotee of the Sport of Kings, writing a story about owning racehorses was second nature to Richard. Despite his near 190cm height, Richard is adamant he was a jockey in his past life!

Racing Terms:

The horseracing world, with its barrage of jargon, can be daunting for first-timers. Here are some tips to help you talk turkey with the pros.

Filly: Female horse aged three years old or younger.
Mare: Female horse aged four years old or older.
Gelding: Male horse that has been castrated, generally to help keep it focused. Colt: Ungelded male horse three years old or younger.
Stallion: Male horse used for breeding. Stayer: Horse that can race longer distances, usually 2,400m and further. Jumper: Horse that runs in hurdle or steeplechase races.
Weight-For-Age: In Weight-For-Age (WFA) races, horses of different ages and sexes compete on equal terms – each horse is allocated a weight to carry based on its sex and age. Australia’s premier WFA race is the Cox Plate.
Handicap: Where each horse is given a weight to carry based on its past performances, the theory being that all horses then run on an equal basis.
Group Races: An international rating for an elite group of races – graded Group One, Two or Three. Races like the Melbourne and Caulfield cups and the Victoria Derby have the highest status – Group One.

Race Dates:

Victoria’s annual Spring Racing Carnival runs between 3 October and 21 November. Highlights include the Caulfield Cup (20 October); the Cox Plate (27 October); the Victoria Derby (3 November); the Melbourne Cup (6 November); and the VRC Oaks (8 November).

The Perth Cup is held annually at Ascot Racecourse on New Year’s Day.

The Adelaide Cup is held at Morphettville Racecourse on 10 March.

Sydney’s Autumn Racing Carnival will run in March 2008. Feature days are run at Rosehill and Randwick racecourses and include the world’s richest race for two-year-olds, the Golden Slipper (15 March); the AJC Derby (22 March); the Doncaster Handicap (24 March); and the Sydney Cup (29 March).

The Brisbane Winter Racing Carnival is run each year from May to June. 2008 Carnival highlights include the Stradbroke Handicap (7 June) and Brisbane Cup (9 June).