Purchase Price

This is the upfront cost to purchase your ownership share (inclusive of GST) and other specified costs as defined to a pre-determined forward date.

How was the share price determined?

All shares we offer for sale to the public reflect: Purchase Price, GST, Insurance, Breaking - In & Education, Race Series Nominations (where applicable), Vet Reports, Agistment, Transport, Farrier, General Veterinary Costs, General Holding Costs, Racing Administration charges, etc. from date of purchase to the pre-determined date as declared in the PDS.

As holders of Australian Financial Services Licence Number 336808 - Upon application for further information concerning any horse we have available, our company will forward to you the following documents: FINANCIAL SERVICES GUIDE : PRODUCT DISCLOSURE STATEMENT (annexured with FULL COSTS DISCLOSURE / VETERINARY CERTIFICATE / CATALOGUE STYLE PEDIGREE / TRAINER’S CONFIRMATION LETTER / INSURANCE CERTIFICATE and RACING NSW LETTER OF APPROVAL) : RACING SYNDICATE DEED : SHARE APPLICATION FORM as required at law by the Australian Securities and Investment Commission. This document highlights specific information relating to the individual horse and cost structure.

Am I joining a partnership or syndicate, What is the difference?

The most common forms of ownership of thoroughbred racehorses are:Co-ownership or Partnership, (often referred to as a "Syndicate" of owners).

Legal advice is now advocating “Co-ownership” of racehorses as distinct from a racing “Partnership” as the preferred ownership structure where there are multiple shareholders (ownership arrangements) of horses.  The main reasons for this advice is the “joint and several” liability associated with racing partnerships which do not affect “co-ownerships” and also various tax advantages associated with co-ownership over a partnership.Therefore Dynamic Syndications only promote 10 share “Co-ownership” horses.

What is Co-ownership?
This term is used to describe the legal relationship between various multiple shareholders who each own an equity proportion of the horse.  Where the relationship between the various multiple owners is one of co-ownership, each co-owner (shareholder) will be entitled to receive directly their proportion of the net prizemoney (if any) won by the horse and will also be liable for their proportion of costs associated with maintaining and racing the horse.  Under co-ownership, each owner is only liable for their proportion of costs associated with maintaining and racing the horse. Co-owners are not "jointly" and "severally" liable for 100% of the costs should other owners default. The multiple owners’ interests in each horse as per the Racing Syndicate Deed are managed by Dynamic Syndications.

What is a Racing Partnership?
This term is used to describe the legal relation between various persons who collectively agree to form a partnership for the purpose of owning a racing a racehorse. The horse under this arrangement becomes the partnerships property and each owner will be beneficially entitled to their proportion of partnership income earned from racing the horse and will be liable to contribute to the partnership, an amount equivalent to their proportion of costs associated with maintaining and racing the horse.  The horse will always be owned by the partnership and not by the individual owners directly and “all” of the partners will be liable "collectively" for the debts of the partnership. Under the Australian Rules of Racing you may only have between 1-10 OWNERS of a horse. From a legal perspective, you have a Partnership or a Co-ownership. Dynamic Syndications create 10 share Co-ownership agreements.

Should 11 - 20 people combine to race a horse and this situation although it is referred to as either a partnership or co-ownership for racing purposes it is known as a RACING SYNDICATE. Whilst syndicate owners are registered as owners with the Racing Authority, unfortunately under the Australian Rules of Racing, individual syndicate members with less than 10% equity shares are not permitted to receive OWNER privileges. Our company seldom offers a syndicate arrangement. We arrange 10 share CO-OWNERSHIPS which attract FULL OWNERS PRIVILEGES.

Am I locked into the partnership?

No. In any racing partnership created by Dynamic Syndications you own your 10% share. It’s not a lease, nor a fixed term contract. It’s a re-saleable asset. In reality, you have title to the share in the horse until it passes away from old age or you sell the share (whichever comes first). You can offer your share for sale at any stage.

What obligations am I under in the partnership?

You are contractually obligated to meet your percentage share of the expenses incurred by the horse throughout its racing and breeding career, whilst you remain the owner of that share. During its racing career we estimate a budget $80.67 per week, over 12 months, should meet all expenses.

If I want out - how do i get out?

A share in a racehorse is a tradable commodity. However, it should be viewed as if selling a house or car. It may take some time until a buyer can be found. Seldom is a buyer immediately available. Under Australian Partnership Law, there are various mechanisms in place to dispose of share. In all Dynamic Syndications promoted horses we have a specific Racing Syndicate Deed which explains the process involved.

We require the co-owner wishing to sell their share to contact the Administration Manager and then arrange for an independent valuation from one of the Auction Houses. Then put the share up for sale to the other partners first. During this period the seller may also attempt to find a buyer however existing owners and the trainer have a pre-emptive right to the share. Any new co-owner must agree to the Terms of the PDS and Racing Syndicate Deed before the transaction can proceed.Basically, co-owners want to sell their share for a couple of main reasons:

(a) Change in personal circumstances – e.g. Financial Hardship (bankruptcy, loss of job, etc.), change of Marital Status, Overseas re-locations, etc. or
(b) The horse is not showing enough promise as a racing prospect.In part (a) above, if the horse is showing racing promise, it is never difficult to find a buyer from within the existing partnership structure. Should the horse not be showing enough ability then this relocates the situation into clause (b).

The clause (b) situation is unfortunately encountered in horses through injury, illness or lack of ability. They fail to reach their owners dreams. Should this be the case, the Racing Manager and the Administration Manager shall call a meeting or make formal contact with all partners with the view of dissolving the partnership. Should this be decided upon by a vote of the majority, then the preferential way of disposal of a horse is to sell it at a tried horse public auctions which are conducted each quarter at the Magic Millions or William Inglis sale yards. Also Private Treaty sales may in rare occasions be negotiated.

What will my share be worth?

Values swing wildly during a horse’s racing and breeding career. This valuation swing is based around success. In essence, a share in a horse represents Muscle, Bone and Earning Potential. As exposed form and / or age take effect, the value will increase or decrease accordingly.

Dynamic Syndications Director and Responsible Officer is a member of the Bloodstock Agents Federation of Australia. He will have an accurate assessment to what the horse is worth. We require co-owners to obtain an independent market appraisal from either auction house (Magic Millions or William Inglis), prior to offering any share for sale.

Why do some syndicators offer shares without an x-ray report but most do? Are x-rays important?

Firstly, Dynamic Syndications only purchase horses for syndication that have been passed by our veterinarian as suitable for purchase with no significant findings noted on any of the 42 X-rays which are read.

X-ray reports are available on 99.99% of quality yearlings offered for sale at major sales. They are a valuable tool available to be used to determine the suitability of a yearling as a candidate for purchase. The average cost to having a set of X-rays is only $165.

It is a Due Diligence / Quality Assurance issue. As a promoter of shares to the public, we would never promote a horse with any issues that are likely to inhibit the racing career of a horse. Whilst there is always an exception to the rule and a small number of horses may race successfully where major defects are visible on X-ray’s, there is a golden rule – If in Doubt – Rule it out!

Would you buy a house without a building and pest report? Well it’s the same principal. Some horses are the price of houses and at every sale inexperienced / amateur buyers, irresponsible participants, unscrupulous dealers, lazy or unfinancial trainers and a host of others step forward and buy horses that on X-ray have issues that are highly likely to prevent the horse making a successful racehorse. Then those horses are on-sold to the unsuspecting public. Lot’s of money is exchanged on a horse that has little to no hope making the grade.

We know trainers can break down sound horses – They don’t need to start with a problem. So why risk it?

As the saying goes: If it sounds to good to be true – It is ! Quality horses cost a lot to buy. There are a lot of professional buyers at the sales who are experienced horsemen and women. However none have X-ray vision. If a well bred well conformed athletic horse with a commercial pedigree can be purchased well below market value then as a potential investor serious questions and hesitation should apply.

There will always be salering bargains, however overall they are hard to find. Smart operators and professional syndicators know the marketplace values. As a potential buyer of a share in any horse, read the veterinarian report and be satisfied the horse had X-rays available and they were read at the sale and the horse passed suitable for purchase, Always be careful. If there are no X-rays available – ask why? Has someone got something to hide?

Comment: Always compare and ensure what you are actually getting for your money – do your homework and you will enjoy the experience of racehorse ownership.

What privileges does ownership bestow?

Name in Racebook, Free Course Entry, Opportunity to lead your horse back to the Winners Circle for feature race wins, Raceday tickets into the Members Stand, Passes to enter the saddling enclosure with your trainer to talk with your jockey, Free Racebook, Invitation by the hosting race club to the winning owners room after your horse has won to enjoy their hospitality, or to the post race room for hospitality and race replays with fellow co-owners. Access to special owners and trainers areas (where available), Individual accounts issued to you directly, Individual contact with the stable, Prizemoney paid directly into your bank account from the Racing Authority, Invitations to stable functions, etc.

How do I know if the horse is physically ok?

Our company supplies a detailed independent veterinary report on each individual horse offered to the public. This will always include a review of a Full Set of X-rays and Endoscopic Evaluation.

Insurance

Promoters are not considered insurance agents under the Act. We include insurance from the fall of the hammer for a finite period to an expiry date of the 1st November in the year of purchase of the yearling. On this date, each shareholder may individually choose to insure their share at their own expense should they wish to do so.

The promoter does not act as an insurance agent but is able to put individual shareholders in contact with insurance providers. On behalf of our owners, if requested we will complete and forward all necessary documentation to the relevant insurance provider.

Holding costs

On a worse case basis, we advise our clients to budget $80.76 per week, ($350 per month) per 10% share ($4,200 per annum) to have a horse trained at a Sydney or Melbourne Metropolitan Racetrack.

Should a client purchase a 5% share they should budget $42.00 per week ($208 per month) per 5% share ($2,496 per annum). These budgeted costs make no allowance for any prizemoney won.

Prizemoney

Payment is sent by the Racing Authority approximately 30 days after winning. Owners whom have a 10% share will receive their prizemoney directly from the Racing Authority.

Owners with less than 10% shares will have their prizemoney deposited into our Dynamic Syndications Prizemoney Trust Account and these funds will be disbursed by our office immediately to the owner.

Information flow

Racing is both a sport and service industry. As an owner in Team Dynamic, you are constantly updated by e-mail, fax or telephone as to the progress of your horse. Our team employs a full time staff member whose task it is to send continual information flow to you relating to the training and care of your horse.

When racing - this includes keeping you fully informed with nominations, weights, acceptances & jockey information, pre-race reports including Speed Maps, Ratings and intended Raceday tactics, etc.

Lets face it!

YOU own the horse and YOU pay the accounts, therefore YOU need to KNOW what's happening with YOUR horse.

Every owner is equally important in our team's success.

Inspection of your horse

As an owner you are always welcome to visit the stable or spelling farm with your family and friends to view your horse at a convenient time for both you and the stable or spelling farm. A simple telephone call to arrange a suitable time would always be appreciated.