Little Red Feather Racing Blog: Takeout

[Fredo]

Racing partnerships are the equivalent to a Ponzi scheme.Any time you sell more shares than what a horse is worth is a crime.
The CHRB should do the job they are paid for and put an end to these crimes.

[Vince P]

Racing partnerships like this, creeps like the Reddams, extended Takeouts, Lasix and other PEDs in racing, ridiculous food/admission, etc, prices at live venues, and then everyone wonders why racing is losing participation in all facets of the game and going down the tubes.

Unbelievable when you really think about it.

Vince P

[Crazykid]

Racing partnerships like this, creeps like the Reddams, extended Takeouts, Lasix and other PEDs in racing, ridiculous food/admission, etc, prices at live venues, and then everyone wonders why racing is losing participation in all facets of the game and going down the tubes.

Unbelievable when you really think about it.

Vince P

i would throw in jockies who gamble quakos and dont pay to that list

[Crazykid]

Belo Purse. I think that horse is running at Blue Ribbon Downs for $1,500 claiming. Billy tried to sell a share to my buddy touting he was going to win the Pacific Classic right off the plane from South America.

maybe at miami oklahoma but not at blue ribbon they went out of business a few years ago

[Vince P]

Racing partnerships like this, creeps like the Reddams, extended Takeouts, Lasix and other PEDs in racing, ridiculous food/admission, etc, prices at live venues, and then everyone wonders why racing is losing participation in all facets of the game and going down the tubes.

Unbelievable when you really think about it.

Vince P

i would throw in jockies who gamble quakos and dont pay to that list

If it wasn't for jockeys there would be no racing!

True?

VInce P

[Kermit]

Belo Purse. I think that horse is running at Blue Ribbon Downs for $1,500 claiming. Billy tried to sell a share to my buddy touting he was going to win the Pacific Classic right off the plane from South America.

maybe at miami oklahoma but not at blue ribbon they went out of business a few years ago

The Cherokee Nation bought it in 2010 from the Choctaw Nation, but at the time they said "we just bought 100 acres that happens to have a racetrack on it, we didn't buy a racetrack". I do think they have had some kind of meet there, but the Cherokees don't have a casino there so probably no one supports it.

Did you know there was a Blue Ribbon Downs in Australia?

[PeteMo]

all these racing partnerships are a joke. they buy a horse for $50k then sell 15 shares for $15k each
and claim thier experience and knoweledge makes it worth it. oh and they get you good seats at the track on the day your horse runs

That example is kind of obnoxious, but if that is what some of these places do it would not be that bad. The bad is some of them will buy a horse for 10K, and then sell it for 100K valuation. Then take a 500/month Management fee, and take 10% of purses, and % of a sale if you are lucky enough to get a good one. I bought yearling filly in 2011 by Macho Uno for 52,000. I could NEVER afford to take on that risk, I sold 2 25% pieces to buddies a month later for 14,000 each. Then a couple months later I sold a 10% piece for 6,000. I told them all if we get lucky and sell her for a profit one day, I want 10% as a reward. She is going into Palm Meadows this week, if she holds up 8 weeks from a race. The reviews are sky high on her, hope she is good enough for us to sell her down the road and get the 10%! Partnerships are great if they treat people fairly financially, but its one problem with the sport, its so hard to people to start out and get a fair shake. Chances are you are going to get taken one way or another.

[Crazykid]

all these racing partnerships are a joke. they buy a horse for $50k then sell 15 shares for $15k each
and claim thier experience and knoweledge makes it worth it. oh and they get you good seats at the track on the day your horse runs

That example is kind of obnoxious, but if that is what some of these places do it would not be that bad. The bad is some of them will buy a horse for 10K, and then sell it for 100K valuation. Then take a 500/month Management fee, and take 10% of purses, and % of a sale if you are lucky enough to get a good one. I bought yearling filly in 2011 by Macho Uno for 52,000. I could NEVER afford to take on that risk, I sold 2 25% pieces to buddies a month later for 14,000 each. Then a couple months later I sold a 10% piece for 6,000. I told them all if we get lucky and sell her for a profit one day, I want 10% as a reward. She is going into Palm Meadows this week, if she holds up 8 weeks from a race. The reviews are sky high on her, hope she is good enough for us to sell her down the road and get the 10%! Partnerships are great if they treat people fairly financially, but its one problem with the sport, its so hard to people to start out and get a fair shake. Chances are you are going to get taken one way or another.

two kinds of people in the horse business, people with money and people with experience
the people with money get an experience and the people with experience get the money

[Claimboxx]

all these racing partnerships are a joke. they buy a horse for $50k then sell 15 shares for $15k each
and claim thier experience and knoweledge makes it worth it. oh and they get you good seats at the track on the day your horse runs

That example is kind of obnoxious, but if that is what some of these places do it would not be that bad. The bad is some of them will buy a horse for 10K, and then sell it for 100K valuation. Then take a 500/month Management fee, and take 10% of purses, and % of a sale if you are lucky enough to get a good one. I bought yearling filly in 2011 by Macho Uno for 52,000. I could NEVER afford to take on that risk, I sold 2 25% pieces to buddies a month later for 14,000 each. Then a couple months later I sold a 10% piece for 6,000. I told them all if we get lucky and sell her for a profit one day, I want 10% as a reward. She is going into Palm Meadows this week, if she holds up 8 weeks from a race. The reviews are sky high on her, hope she is good enough for us to sell her down the road and get the 10%! Partnerships are great if they treat people fairly financially, but its one problem with the sport, its so hard to people to start out and get a fair shake. Chances are you are going to get taken one way or another.

Pete, the example you used is fair and done amongst friends or acquaintances, you charged your friends what you had into her. Good luck with your filly... I have a problem with the partnerships that buy horses cheap, syndicate them for 5 - 10x the purchase price under the guise that you are paying for the "experience" and a "good time" at the racetrack. Everyone LOSEs but the syndicate owners who put it together. Talking to trainers who train for these groups, it is hard on them because they have to run these horses over their head because of the amount they were syndicated for and certainly it cannot be enjoyable for the people who "invested" to see the 5 - 10% of the horse they purchased run poorly..

[Andyc]

Pete, the example you used is fair and done amongst friends or acquaintances, you charged your friends what you had into her. Good luck with your filly... I have a problem with the partnerships that buy horses cheap, syndicate them for 5 - 10x the purchase price under the guise that you are paying for the "experience" and a "good time" at the racetrack. Everyone LOSEs but the syndicate owners who put it together. Talking to trainers who train for these groups, it is hard on them because they have to run these horses over their head because of the amount they were syndicated for and certainly it cannot be enjoyable for the people who "invested" to see the 5 - 10% of the horse they purchased run poorly..

I have no problem with people buying horses cheap and selling them for whatever they can get. Clearly there are willing buyers who don't care what they pay. I am always amazed at people who pay full retail or full retail plus just to get what they want. Given that owning race horses is usually a luxury hobby for many I am not going to have a pity party for them.

Now if you want to talk about ripoffs, the financial "services" industry, specifically the money management part is legalized robbery.