Nothing in the world of sports seems as unattainable as a spot in the winner's circle at a horse race, especially if you don't have the stature of a jockey, and certainly if you don't have access to a considerable amount of money.
While the thought of actually owning one of those captivating animals seems far-fetched, what many people don't realize is that numerous partnerships have formed in recent years in order to create more viable ways to become involved in the game and claim one's stake-however small-in the Thoroughbred industry.
Being involved in a sport that wraps pride with agony and joy with heartbreak is a sensation that can only be understood if it's experienced first-hand. And with more and more partnerships that represent investors from across the country springing up, it's becoming easier for the average fan to become more than just a spectator of the storied pastime of the Sport of Kings.
W. Corthran "Cot" Campbell, president of the South Carolina-based Dogwood Stable, runs what is believed to be one of the first ever racing syndicates, maintaining an active, national business since 1969.
Perhaps one of the most memorable stories in racing syndicate history, however, involves the group of friends from Sackatoga Stable who owned Funny Cide, winner of the 2003 Kentucky Derby and Preakness. Showing up at each Triple Crown race in a yellow school bus, the syndicate proved just how much fun group ownership can be.
Matt Gatsas, president of the New Hampshire-based Sovereign Stable, looks at the partnership venture like taking a vacation where you know you're most likely going to be spending money rather than making it, but the experience is still more than worth the expense.
"Go into it with the attitude that it's going to be a ton of fun, like a vacation where you're going to have the time of your life, but know you're not going to get any money out of it," he advised.
That way, if you get lucky and actually do turn a profit on a big winner, it makes the experience all the more rewarding, he explained.
One unique aspect of Sovereign that sets it apart from other syndicate groups is the smaller shares that it offers to lower-level investors-some for as little as $3,000 to $4,000.
"We offer the smaller owner a chance to compete at the highest level," Gatsas said.
A common goal of many racing stables is having close communication with partners, providing them with up-to-date information on the progress of their horses, and consulting them about any major decisions. Most every partnership, no matter how big or small, has a team of professionals that run its stable, including one or several trainers, a veterinarian and a bloodstock agent to select the horses.
Typically, once a Thoroughbred is acquired within a partnership, it is placed in a Limited Liability Company (LLC), with its own set of financial accounts. The company will then act as racing manager for each partnership, overseeing the day-to-day management of each horse.
Team Valor is more of a high-end syndicate, with the average investment in one partnership costing between $12,000 and $20,000 (lowest increment is $10,000), but it has proved to be an exciting investment for many people because of its high success rate: 28 percent of the stable's total runners have won stakes races, according to their Web site.
The company encompasses a broad spectrum of investors, several of whom are brand new to the business, from CEOs of Fortune 500 companies, to young men who recently graduated from college.
"These are basically guys that have been betting the game for a long time, and now they actually have the money to invest in it," said former Daily Racing Form columnist Barry Irwin, who manages Team Valor. "It's like fantasy baseball for them, but it's real, live horses."
Like Team Valor, Little Red Feather Racing (LRF) offers partnerships formed under an LLC. LRF garnered national attention and made its mark as a partnership when the group won the Grade I, $1.5 million Breeders' Cup Mile with a modestly priced colt named Singletary in 2004.
Billy Koch, managing partner of LRF, said those interested in becoming involved in any partnership should concentrate on doing their homework before making any moves. "Do as much research as possible and talk to the managing partner and see how you fit with that person," Koch said. "Go into each call with an idea of what your budget is."
Shares in LRF horses start for as little as $5,000, and go all the way up to $100,000, but no matter how much or little ownership one has, Koch takes pride in being able to offer the service to customers.
"This game is excitingÖpeople want to be a part of it because it's where you experience the highest of the highs and the lowest of the lows," he said.
When considering the underlying plan of LRF, Koch said simply: "I'm 38 years old and I have a finite chance to win the Kentucky Derby, but that is the ultimate goal. I want people to have good experiences, and if they can: turn a profit, compete and win big races."
Ron Peltz of Equirace Stable in LaGrange, Ky., has been involved in racehorse ownership since 1998 and maintains a stable that competes primarily on the Midwestern circuit.
A paving contractor by profession, Peltz used his professional skills to develop a racing venture that was launched by the success of Freefourinternet, a winner of multiple stakes races across the country from 2001-2004, including the Grade II Kelso Breeders' Cup Handicap at Belmont Park and the Hawthorne Gold Cup Handicap.
Peltz, who has had many of the same partners for the last 12 years, said the partnership aspect of racehorse ownership had also helped him develop great friendships.
"But my favorite part about this is being in the winner's circle," Peltz said. "The only reason I do (partnerships) is so I can buy more horses and compete at the level at which I compete. For the little guy like me, you have to buy horses in partnerships."
Based in Louisville, Ky., Team Epona has a similar concept to Sovereign Stable and LRF in that it offers affordable share options, some as small as $1,000. Founded by Irish-born trainer Niall O'Callaghan, who heads the stable with racing manager Billy Teinowitz, Team Epona has a boutique approach to Thoroughbred racing and sells single shares of proven runners from both Europe and the United States.
"What I've found is the people with $1,000 shares have just as much fun as the people with $50,000-$60,000 shares," O'Callaghan said. "The people who come in with a small investment become friendly with the people with the higher investments, and it creates a social interaction that you could never imagine."
Team Epona takes a hands-on approach to its partnerships. A small, but experienced, staff runs the operation, and all training takes place at O'Callaghan's farm in Oldham County, Ky.
Most every racing syndicate is terminated after a designated period of time, and O'Callaghan's' partnerships dissolve after three years at the conclusion of the horse's 4-year-old racing season. After the horse is sold, its profits are distributed to the partners, or can be reinvested in a new syndicate.
Like most other syndicate managers, O'Callaghan's business goal is far from complicated: have fun, and win big races.
"(Horse ownership) is a huge outlet," he said. "There's a fierceness of excitement that's only understood by those who have experienced it. It's phenomenal, a huge high. If you choose to invest, you may lose it all, but with the right situation, the right horse and the right people, you could find yourself in the winner's circle."