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There are few more popular sports in the world to get involved in than horse racing.
The allure of shouting home your horse from the parade ring and your runner then finishing ahead of the field offers a thrill that is unrivalled compared to much. Therefore, it is little surprise that a growing number of racing fanatics are looking to invest in racehorse ownership.
But, there are a number of different ownership options available to those looking to get involved with live racing betting investments, varying from full ownership to shared ownership.
You can find out more about the differences, and the key considerations that must be taken into account before putting down money in an investment in the sport.
Sole Ownership
There are few more enjoyable moments for lovers of horse racing than owning a racehorse that wins one of the biggest races on the calendar. However, sole ownership is typically only enjoyed by those with the deepest pockets in the sport.
Just putting money forward in the parade ring sales for a talented star that is unraced could cost up to a $1 million, depending on the pedigree. This is often one of the biggest gamblers for those looking to own a racehorse by themselves on the flat, as you will know nothing about a potential runner and their abilities, as horses will be brought on pedigree and reputation alone.
As well as this, the costs will continue to weigh heavy on sole owners, as you will be responsible for paying training fees and transportation costs of your horse alone.
This means, it could cost up to $30,000 annually to maintain your horse’s welfare, ensuring that it has the relevant health inspections and best care in terms of trainer. Fortunately, many lovers of racing are now looking at buying shares in a horse, rather than hoping to buy an equine star outright.
What’s The Difference?
Buying racehorse shares is an excellent way to get your foot in the door of ownership, as you will continue to have all the main perks as you would with sole ownership, but at a fraction of the cost.
Buyers can look to purchase between 2.5% and 45% of the horse, with the greater the share seeing the more money put in by the individual. Furthermore, the higher the share means that the share holder will stand to win the bigger share of returns should the horse claim any winnings in big races.
However, for the most part, no matter how much of a horse you own, you will get the same overall experience. This includes being able to visit your star at their stables, watching them work out, and also owners badges when your runner is competing on track.
Is it a Wiser Investment?
While sole ownership could be the best way to go in terms of picking up higher returns for your investment, it is also the most dangerous, as you could stand to lose a lot more money than you originally put in to buy the horse.
Therefore, buying shares for a racehorse is a much more encouraged route into the sport. Owners will not need to put in as much money, while also gaining the same perks that you would from sole ownership.
As the very best horses will already be sold for high fees, it ensures that those that enjoy following horse racing can get closer to the action at a more respectable figure. However, if you happen to have deeper pockets and are willing to take a gamble on unearthing the next star, then shared ownership may not scratch the itch.
Why Shared Ownership Excels
Shared ownership is offering millions of horse racing fans the ability to get closer to the action. The affordability aspect means that only a fraction of the costs and operating fees are being paid for by a shared owners, ensuring that it is a budget-friendly route into the sport for those that are passionate about their racing.
Not only this, but you will be one of many owners, meaning that a community experience is born, enabling like-minded fans of the sport to get into contact, and share wins and commiserate losses together. Of course, there is also the financial aspect that many still consider when it comes to shared ownership, as handsome returns can still be picked up by those with shares.
Solid performing horses could see money returned to owners, although this is likely to be a fraction of the returns that you could stand to win should you own a horse outright. However, sole owners will also have the opportunity to have a greater say in their horse’s end goals, while those involved in shared ownership will leave the biggest decisions to the trainer. But, overall, it is all about how much of an investment you’re willing to make.