Little Red Feather Racing Blog: Takeout

[Crazykid]

hey if someone can sell shares in a horse for 10x what they paid more power to them. the part i dont like is how they misrepresent what they do.
one of these deals had a whole sales pitch about how they had some known bloodstock agent pick and buy all of thier horses for them so they knew more than everybody else. anybody could hire that same excat guy for the exacta same price the syndicate managers paid, but they let on as if you couldnt get that guy without them. that guy can be hired by anybody to buy horses for them at sales and he even advertised in bloodhorse to get clients

[Andyc]

hey if someone can sell shares in a horse for 10x what they paid more power to them. the part i dont like is how they misrepresent what they do.
one of these deals had a whole sales pitch about how they had some known bloodstock agent pick and buy all of thier horses for them so they knew more than everybody else. anybody could hire that same excat guy for the exacta same price the syndicate managers paid, but they let on as if you couldnt get that guy without them. that guy can be hired by anybody to buy horses for them at sales and he even advertised in bloodhorse to get clients

I would have to believe if there was any misrepresentation that lawsuits will inevitably be filed and won.

[Crazykid]

oh things can be misrepresented with no guarantee and you would have no grounds for a law suit.
read the syndicate sales pitch and its absolutely full of mis representations.

[PeteMo]

One of the "top" partnership outfits is now in many cases selling home breds and coming up with a "fair price" based on what other yearlings etc by that sire have sold for. Does not mean the horse they are selling cant run, but to pay a high price based on that methodology seems dicey at best. Another bigger name syndicate for awhile was doing a yearling to 2 year old pinhook type thing, they would "buy back"the horses that did not "meet fair value" after previewing poorly at the undertack shows, but they would buy them back at an level to bail out the pinhook then resell the horse as a racehorse prospect to another set of investors at yet another vastly elevated price point. Then one of my favorite things about all of them is they all absolutely LOVE everyhorse they are selling. Telling you with a 2 year old, 6 months in advance to get ready to be in the winners circle at Del Mar, Saratoga etc. Its so pathetic listening to some of their garbage. If the horse was even 1/10th as good as the hype they would want to maybe keep 10% for themselves, most of these groups will never have a dollar of their own money in the horse by the time they step in the gate for the first time. As i said earlier though, how do you get started on your own for most people. Rome was with LRF for awhile early on, he got lucky and got out before it turned him off on the game completely.

[Claimboxx]

Rome was with LRF for awhile early on, he got lucky and got out before it turned him off on the game completely.

He found out on his trip to Kentucky to see his babies what LRF was about...Needless to say, it was the last thing they ever did together..

[Andyc]

One of the "top" partnership outfits is now in many cases selling home breds and coming up with a "fair price" based on what other yearlings etc by that sire have sold for. Does not mean the horse they are selling cant run, but to pay a high price based on that methodology seems dicey at best. Another bigger name syndicate for awhile was doing a yearling to 2 year old pinhook type thing, they would "buy back"the horses that did not "meet fair value" after previewing poorly at the undertack shows, but they would buy them back at an level to bail out the pinhook then resell the horse as a racehorse prospect to another set of investors at yet another vastly elevated price point. Then one of my favorite things about all of them is they all absolutely LOVE everyhorse they are selling. Telling you with a 2 year old, 6 months in advance to get ready to be in the winners circle at Del Mar, Saratoga etc. Its so pathetic listening to some of their garbage. If the horse was even 1/10th as good as the hype they would want to maybe keep 10% for themselves, most of these groups will never have a dollar of their own money in the horse by the time they step in the gate for the first time. As i said earlier though, how do you get started on your own for most people. Rome was with LRF for awhile early on, he got lucky and got out before it turned him off on the game completely.

As with any venture, a business will have to live with its track record (no pun intended). Generally, people who have made enough money in their life so as to have enough expendable money to buy horses are fairly intelligent people. Most will figure it out but the others will lose their money in racing partnerships or some other non-racing deal that they are talked into.

[Crazykid]

you would have to be a fool to pay $10k for a 5% share in a horse who sold 3 months earlier at a horse sale for $20k
but thats exactly what these guys do.

[Beatthevig69]

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

'They don't call it the sport of kings for nothing'

[Vince P]

you would have to be a fool to pay $10k for a 5% share in a horse who sold 3 months earlier at a horse sale for $20k
but thats exactly what these guys do.

There are a LOT of fools in this world.

When you have racehorse people like Reddam, etc, talking business, anyone can fall for anything.

Heck, I know one fool who wagered on Denomic in the futures last week without knowing he has no plans for the Darby.

Vince P

[Joel]

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

'They don't call it the sport of kings for nothing'

Sharp post.