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Owning Racehorses

The Thoroughbred racehorse has been developed and refined over many centuries, and the desire to run is evident in every fiber of their being. Watching a jockey in your silks guide a half-ton of power and grace down the stretch, and sharing the limelight of the winner's circle with horse and rider are among the most thrilling experiences that the sporting world has to offer.

Thoroughbred racing is one of the most exciting and pleasurable investments available, but it is also one of the most challenging. Those thrilling seconds between the starting gate and the finish line are but a small part of a complicated and highly specialized industry. Months of effort and thousands of dollars are invested in preparing a horse to race.

A racehorse owner must be able to endure the emotional and financial frustration of losing; it is a fact of life in the racing business that more efforts end in defeat than in victory. A dozen horses may break from the starting gate in every race, but only one will stand in the winner's circle. Conversely, the rewards that accrue to the successful racehorse owner through breeding can be considerable.

Racehorses are like any other professional athlete; they are not machines, and are subject to the same ups and downs of performance as any human athlete.

Hypothetical example of ONE yearling to race purchase plan:
1.Yearling purchased in the amount of $100,000.
2. Board/Break/Insured for the first year for $35,000
3.Training at the track for subsequent year of $40,000
4.Track/lay-up for subsequent year of $30,000

Total for first three years: $205,000 per horse
Multiplied by three horses:$615,000
DIVIDED BY TEN (because you joined a partnership)$61,500!

Dapple Racing Stable: Racing with a Purpose

The basic tenet of Dapple Bloodstock's racing philosophy is 'racing with a purpose.' The successful racehorse owner can expect to convert their winning fillies and colts into breeding stock that will produce progeny that can be sold profitably into the marketplace. Dapple's focus is to purchase the highest quality pedigrees for fillies and colts that our client's racing budgets will permit. While we are always on the lookout for colts with stallion potential, there is a definite bias at Dapple towards well bred fillies that can become broodmares almost without regard to their racing careers. Pedigree greatly determines the residual market value after racing and we purchase as much athleticism possible without sacrificing pedigree.

While there are tax and other benefits associated with racing, there is no substitute for owners watching their horses run competitively at the track. In addition to acquiring stock to race, we assist owners with access to race track venues to watch their horses run, including all of the services required for them to have satisfying racing experiences.

Beginning with a partnership may be the best opportunity to learn the racing process, and there is so much to learn. Eventually one may reach a confidence level to go out on your own, however many of our investors build their portfolio with a combination of both.

Dapple's partnership vehicle is designed to allow for long life in the racing game through sharing the risk of owning well-bred stock. We hope to develop partnerships each year along these lines that will allow us to enjoy the sport in a first-class manner.

Annually, we syndicate 8-10 horses from each foal crop. Most come from the recent yearling sales and sometimes another horse or two can be added from the two-year-old sales. We will attack from an "athlete" point of view and get as much pedigree as we can. Pedigree greatly determines the residual market value after racing and we try to buy as much pedigree as we can without sacrificing athleticism. Current and Prospective Dapple owners are notified within one week of each purchase with an opportunity to sign on. Please contact our Lexington Headquarters to be included in one of these groups.

Dapple Stable is fortunate to be able to use some of the best trainers in the business. Everyone knows Bill Mott and Steve Asmussen will continue to handle our mid-west horses and I could not be more pleased with him. The New Orleans, Churchill and Chicago circuit that he is on will provide us with a lot of entertainment over the next several years. Mott will have a division at Churchill and Chicago as well. Experienced horseman Tom Voss keeps the New England circuit in place for Dapple

Seven Great Reasons to Race with Dapple Stable

1. affordable ownership units with 10% units priced between $7,500 and $25,000
2. built in training allowances of $25,000 per horse to avoid cash calls in the first year of existence
3. access to the industry's best trainers in Bill Mott, Steve Asmussen and Thomas Voss
4. quarterly financial reporting and annual K-1 preparation at no additional charge to owners
5. documentation of owners active status for federal and state tax purposes
6. access to racing venues and regular client updates on training and racing activities and strategy
7. reasonable management fees of 5% of winnings and 5% of bloodstock sales proceeds