What is the Share Price & ..... What will be the Ongoing Holding Costs?
The SHARE PRICE is the advertised upfront cost to purchase your ownership share (inclusive of GST) and includes the Fall Of Hammer Price and ALL COSTS specified as declared in the Product Disclosure Statement (PDS) to the pre-determined maturity date (normally 6 months from date of purchase).
After the maturity date, then the ongoing Training and Holding Costs will begin.
For a 5% Share over a 12 month period, on a worse case basis - Owners should budget to have a horse trained by a Premiership Leading Trainer at a
Sydney or Melbourne Metropolitan Racetrack an average of:
$8.20 per day = ($58.00 per week) = ($250 per month) = ($3,000 per annum)
Should a client purchase a larger equity percentage then the costs are simply multiplied pro-rata.
These budgeted costs make no allowance for any prizemoney won and with prizemoney at record levels, racing has never been more affordable and profitable.
How was the share price calculated ?
MYTH BUSTER: The Syndication Industry is regularly accused by those uneducated to the processes of the racing industry, of making a significant “MARK UP” from what we pay for a horse at the sales to the final Syndication Sale price.
From Dynamic Syndications position, we totally reject any such false / dishonest / inaccurate / ill informed commentaries.
FACT: Dynamic Syndications are committed to FULL DISCLOSURE - TRANSPARENCY & INTEGRITY
All shares Dynamic Syndications offer for sale to the public reflect the Purchase Price and ALL COSTS out to a Forward Date of approximately 6 months. The syndication sector of the racing industry, as required under the Corporations Act and Australian Financial Services License compliance, is the most transparent of any industry in the Southern Hemisphere.
For each individual promotion, all costs are FULLY DISCLOSED (including our profit margin) and are attached as an annexure to the Product Disclosure Statement (PDS).
AUCTION PRICE: Fall of Hammer Price paid in the Auction Ring + GST
DYNAMIC SYNDICATIONS Profit Margin is on Average 7.75% of the Share Price
Our Gross Profit for EVERY Promotion we offer is calculated at a SET FEE of 12.5% of the Fall of Hammer Price e.g. If a horse is sold for $100,000 we charge $12,500 + GST for the promotion; e.g. $60,000 = $7,500 + GST; or $120,000 = $15,000 + GST; etc., etc.
Therefore on the financial model above, should Dynamic Syndications purchase a horse for $100,000 in the salering, we add our set fee Profit Margin fee of $12,500 = $112,500 + GST = $123,750 divided by 20 shares = $6,187.50 (including GST) per 5% Share.
Breakdown: Cost of Share $5,000 + Dynamic Syndications Profit $625 + GST $562.50 = $6,187.50
From this position, simply ALL COSTS incurred in the process from the selection of the horse out to the set forward date are added together and divided against the 20 shares and a fixed price is determined which becomes the SYNDICATION PRICE. These costs are incurred are always FULLY DISCLOSED in the Cost Annexure attached to the PDS. Costs incurred are per the schedule below:
NOTE: Under our current AFS License, the maximum promotion allowed to be offered to the public from any Syndication Company is $500,000 including GST.
However under our internal structure, the maximum price we pay for any horse in any sale ring is capped at $170,000.
Therefore $170,000 x 12.5% = $21,250 divided by 20 shares = $1,062.50 + GST
Therefore the MAXIMUM GROSS PROFIT potentially available to Dynamic Syndications upon a 5% Share is $1,062.50 from a 5% Share priced at $13,750.
This equals just 7.73% of the Promotion Price.
SALE COSTS ~ VETERINARY: Veterinary work at sale complex by our contracted veterinarians, including physical inspections and X-rays, apportioned across all yearlings purchased for syndication + Endoscopic evaluation post-sale to ensure the horse’s airflow is of normal function + Blood testing post-sale for any Anabolic Androgenic Steroids on each lot purchased. (Note: If any lot fails Endoscope or Blood testing the sale is immediately cancelled).
SALEYARD COSTS: Sales expenses incurred in Team attending sale apportioned pro-rata across all yearlings purchased for syndication (Staff Transport, Accommodation, etc.) + Consultancy Fee to our appointed Independent Bloodstock Consultant for individual inspections of All yearlings to determine final lots to submit for veterinary inspection pro-rata across number of yearlings purchased for syndication + Miscellaneous costs of professional photographers + pedigree ratings software fee + apportioned pro-rata across all yearlings purchased for syndication.
Average of all these SALE COSTS: VETERINARY + SALEYARD per 5% Share = $335
IMMEDIATE ADMINISTRATIVE COSTS: Fall Of Hammer Insurance (covering FULL SYNDICATION PRICE,
Accident, Sickness and Disease Mortality, Theft, Colic, Emergency
Surgery) plus Professional Indemnity Cover + Impairment Guarantee Cover from Date of purchase out to 1 November of that year.
Eligibility Payments are made for potentially up to nine (9) Various Race
Series (e.g. Magic Millions or Inglis Sales Series + Golden Slipper
& Golden Rose + Blue Diamond & Blue Sapphire + BOBS & BOBS
Extra and/or VOBIS & VOBIS Gold, wherever the horse is eligible).
HORSE HUSBANDRY COSTS: Then we: Transport the horse from Saleyard to Spelling Paddock + 1 month Agistment + Transport to Educators + 5 Weeks Breaking - In & Education + Transport to Pre-Trainers for 2 weeks in a Racing Stable to Finish Education + Transport back to the Spelling Paddock + 1 month Agistment + Transport to Pre-Trainers (2nd Time) + 3 Weeks Pre-Training (re-education) + Transport to Spelling Paddock + 1 months Agistment + Transport back to Pre-Trainers (3rd Time) + 2 weeks at Pre-Trainers + Transport into Racing Stables + 2 Weeks in at Racing Stables at Racecourse + Transport back to Spelling Paddock + 1 months Agistment, etc.
MISCELLANEOUS COSTS during this period include: General Veterinary, Farrier, Dentist, Race Club Track Fees and other minor expenses.
ESTABLISHMENT & PROMOTION COSTS: Pro-Rata Costs Proportioned Equally Across ALL Promotions: Postage, printing, handling & stationary + Communications by telephone, facsimile, email, SMS + Marketing & Promotion + Banking Fees + Merchant Service/eftpos fees + IT service provider + Advertising across all platforms: Television, Radio, Websites and other Digital platforms.
Average of these Establishment & Promotion Costs per 5% Share = $593
STATUTORY COSTS: The following list of expenses incurred under Compliance as an Australian Financial Services License holder for the protection of ALL Investors: Veterinary Report for PDS + ASIC Form 88 PDS in-use notice + Lead Regulator Registration of Promotion Fees to Principal Racing Authorities (Racing NSW or Racing Victoria) + Professional Indemnity Insurance + Audit fee + Accountants fee + Legal fee.
Average of these Statutory Costs per 5% Share = $335
GST: All costs are calculated into the schedule are exclusive of GST. Once a final figure is determined, the 10% GST is calculated and then ADDED to the Costs Annexure
The MAXIMUM PRICE for any Dynamic Syndications promotions is capped at $13,750. Therefore the MAXIMUM GST payable on any 5% Share = $1,250
As holder of Australian Financial Services License Number 336808 - Upon application for further information concerning any horse we have available, our company supplies both online and in hard copy the following documents:
FINANCIAL SERVICES GUIDE : PRODUCT DISCLOSURE STATEMENT (PDS) with annexured RACING NSW LETTER OF APPROVAL / FULL COSTS DISCLOSURE / CATALOGUE STYLE PEDIGREE / TRAINER’S CONFIRMATION LETTER / VETERINARY CERTIFICATE / INSURANCE CERTIFICATE : RACING SYNDICATE DEED : SHARE APPLICATION FORM as required under the Corporations Act and under our AFS License.
This document highlights the specific information relating to the individual horse and cost structure.
What privileges does ownership bestow?
WITH DYNAMIC SYNDICATIONS -
YOU'LL BE THE BEST INFORMED OWNER IN RACING !
Our business philosophy is to Set the Standard and Ensure Our OWNERS are treated as VIP's
With Team DYNAMIC - You WILL BE the BEST INFORMED Owner in Racing !
Our business model is often copied because every company attempts to offer good service to owners.
However - We are Market Leaders for a Reason - Nobody does it better !
OUR DYNAMIC OWNERS RECEIVE:
* Regular Updates: By Email, Text along with Pictures and Audio Reports and then Phone calls when the horse is ready to go !
* Minimum of 1 weekly
update when your horse is in the spelling paddock, along with photos and
/ or video of your horse each month whilst
* Weekly updates when your horse in early training.
with weekly updates when your horse in early training you will receive
Fortnightly pictures and or videos of your horse in early training
* Twice weekly reports when your horse is up to Fast Work (galloping along) with weekly pictures
* We attend trackwork at
Randwick each week and interview our trainer about Dynamic Horses in
work which we post in your electronic mailbox
* Pre-Race Day: Receive as they close the NOMINATIONS, WEIGHTS and ACCEPTANCES sent directly by Email and Text
* Pre-Race Day: Receive a Full Race Preview including SPEED MAPS, RATINGS, PRE-RACE PRICES, PREDICTED DANGERS, RACE TACTICS
* Pre-Race Day: Receive a Call from our Client Liaison Officer who will discuss the information provided and attempt to assist where possible
any request for additional ticketing
* Pre-Race Day: Receive contact via an Audio Report from your trainer delivered by Email / Text
* STABLE MAIL - Each Friday our owners have access via their electronic mailbox to an outstanding tipping service along with the
Stable's Best of the Day for Saturday's races.
This will ensure even when your horse is in the spelling paddock,
that your involvement and interest with our team can be as profitable
* ON RACEDAY - Per 5% Shareholder:
* YOUR NAME in the Racebook,
* Complimentary Racecourse Entry for you and a Guest,
* A Free Racebook,
* Raceday tickets into the Members Stand for the Owner & Guest,
* Passes to enter the saddling enclosure with your trainer to talk with your jockey x 2,
* Stable Representatives,
Trainer and Team Dynamic will always endeavour to be with you at the
track on the days your horse races to
assist making your day enjoyable.
* Opportunity to lead your horse back to the Winners Circle for feature race wins,
* Join the horse, the trainer and fellow owners in the Winner's Circle and get your photos taken everytime you win !
* Invitation by the hosting race club to the Winning Owners room after your horse has won to enjoy their hospitality,
* Invitation to the post
race room for hospitality and race replays with fellow co-owners and
trainer if your horse didn't win on the day.
* Access to special Owners and Trainers areas (where available),
* Access to special Owners Only areas in the Grandstand at the track to watch your race
* Dynamic Syndications provide our Owners with a complimentary WINNING DVD
* NON RACEDAYS
Bring your Family & Friends along with you to:
* Stable inspections to visit your horse at the racing stables available every Sunday when in training,
* Spelling Farm inspections to visit your horse when out of training
* Invitations to regular stable / owners functions, etc.
* NON-RACEDAY ADMINISTRATION
* Prizemoney is paid directly into your designated bank account directly from the Racing Authority,
* With Dynamic Syndications co-ownership's, you're never liable for any other owner who doesn't meet their accounts to suppliers,
* Individual contact with the stable,
* Individual accounts issued to you directly.
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 Client Liaison Officer 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, post race
statistical data, post race written review, etc.
Let's 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.
Payment is sent by the Racing Authority approximately 30 days after winning.
Prizemoney is distributed by the relevant Racing Authority's Stakes Payment Division, twice per calendar month.
Owners whom have a 5% share or greater will receive their prizemoney
directly from the Racing Authority into their designated bank account.
Owners who form a Racing Syndicate (multiple owners in one share) will
have their prizemoney deposited into the Dynamic Syndications Prizemoney
These funds will be disbursed immediately they have cleared through the
banking system by our office to the individual racing syndicate members.
Inspection of your horse (Visiting the Stables & Spelling Farm)
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
our office to arrange a suitable time would be required to organise an
How do I know if the horse I am interested in purchasing a share in is physically ok?
Our company supplies a detailed independent veterinary report on each
individual horse we offer to the public.
Each promotion we offer to the public includes has a current veterinary certificate (within 30 days) of lodgement of the documents with the Lead Regulator for Approval of the Promotion.
Further, within the PDS we declare that should any event change the health or well-being (injury or illness) of the horse prior to the registration of the scheme with the Lead Regulator, the risk remains with the Dynamic Syndications as the promoter and the purchaser / investor shall have a full refund of their share application price paid into the trust account.
This veterinary report will always include a
review of the horse's:
* Physical conformation and size,
* A review of the Full Set of 36 X-rays,
* A Post-Sale Endoscopic Evaluation and
* A blood test checking against the use of Anabolic Steroids or Agents in the preparation of the yearling for the sales.
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 36 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?
Even if X-rays were not available from the vendor at the yearling sale, the promoter should themselves arrange to have a set of X-rays taken to ensure potential investors are not disadvantaged. That's due diligence.
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.
Promoters are not considered insurance agents under the Act. Our Share
Price includes insurance from the fall of the hammer for a finite
period. In most circumstances, that date is through to 1st November in
the year of purchase of the yearling.
On this date, each shareholder may individually choose to re-insure their share at their own expense should they wish to do so.
Owners are under no obligation to re-insure. Some owners decide to
re-insure, some owners choose not to re-insure. It is a matter of
Dynamic Syndications always recommend that our owners consider their
personal position and if appropriate, we do recommend that clients
Owners should budget approximately 4% of the insured value as the
anticipated annual premium. For example, if the insured value of your 5%
share was $8,000 then the premium would be approximately $320.00.
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.
Dynamic Syndications Managing Director has had business dealings with LOGAN LIVESTOCK INSURANCE since 1986.
At our request, Logan's
will contact each owner directly to determine your preferences. Owners
are under no obligation to use the recommended insurance provider.
Clients are free to use the insurance provider of their choice.
A-Z Glossary of Australian Horse Racing Terms including Slang, Lingo and Sayings
Heighten your racing experience and increase your enjoyment as an Owner in the Sport of Kings by understanding its commonly used terms, slang, lingo and sayings.
Below is a comprehensive glossary of horse racing and veterinary terms designed specifically for Dynamic Racehorse Owners to help understand some of the more unusual words which have been adopted in horse racing.
Horse racing dates back hundreds of years and has acquired some interesting use of the English language from all around the world which is now common place in everyday conversation.
Acceptor: A horse that has been declared by the owner or trainer to run in a race.
Age of Horse: Race horses all celebrate their birthdays on the same day. This makes it easier to keep track of breeding and records.
In the southern hemisphere (Australia, New Zealand, Japan, Hong Kong and Singapore) horses celebrate their birthday on the 1st of August each year.
In the northern hemisphere (United Kingdom, Ireland, France, USA and Canada) horses celebrate their birthday on the 1st of January each year.
All Clear: The correct weights allocated to a horses depending on the type of race they are in, including jockey, gear and any lead that is required to make up the specific weight.
All In Betting: A bet taken usually at fixed odds early in betting.
Also Ran: A horse who finishes out of the money.
Anterior: Towards the front.
Apprentice - Junior jockey indentured to a trainer for a four year apprenticeship. An apprentice can claim a reduction of up to 4kgs in the weight carried by the horse. As the jockey wins more races the amount they can claim is reduced. Claim appears next to their name in the racing guides (e.g. 1.5kg)
Apprentice Claim: Weight concession to an apprentice rider.
Approximates: The approximate tote odds on offer before the final pool is closed.
Articular cartilage: Cartilage that covers the ends of bones where they meet in a joint.
Ataxia: Loss or failure of muscular coordination.
Atrophy: To waste away, usually used in describing muscles.
Average-Earnings Index (AEI): A breeding statistic that compares racing earnings of a stallion or mare's foals to those of all other foals racing at that time. An AEI of 1.00 is considered average, 2.00 is twice the average, 0.50 half the average, etc.
Back at the knee: A leg that looks like it has a backward arc with its centre at the knee when viewed from the side.
Backed Off The Map: A horse heavily backed in betting.
Backward: Horse that is still physically immature and / or mentally immature.
Back Up: Refers to a horse who races for a second time in a short space of time, 7 days or less.
Bad doer: A horse with a poor appetite, a condition that may be due to nervousness or other causes.
Bagman: Bookmakers associate responsible for settling up on bets at the track.
Bailed Up: A runner racing inside other runners waiting for clear galloping room.
Bandage: The distinctive strips of cloth wound around the lower part of a horse’s legs (this is used to protect against injury).
Banker: One horse who is a standout selection in a race for exotic bets e.g. Quinellas, Exactas, Trifectas etc.
Barrier Blanket: assists horses who resent being loaded in the starting gates. The blanket is attached to the back of the stall once the horse is loaded and remains behind when the horse jumps.
Barrier Draw: The ballot held to decide the barrier a horse will start from.
Barriers: What they call the starting gates the horses come out of at the start of the race.
Bar shoe: A horseshoe closed at the back to help support the frog and heel of the hoof. It is often worn by horses with quarter cracks or bruised feet.
Bay: A horse colour that varies from a yellow-tan to a bright auburn. The mane, tail and lower portion of the legs are always black, except where white markings are present.
Benchmark: Under this system the weight a horse carries at its next start is determined immediately after its previous race, according to the merit of that run. Each Benchmark point equals half a kilogram.
Birdcage: A portion of the racecourse where horses are paraded before the start of the race. Birdcage is also known as the celebrity room at large race days such as the Melbourne Cup in Australia.
Bit: Part of the Bridle, the metal bar that is placed over the horses tongue. When a horse gets its tongue over the bit (or ‘Chokes Down’), the jockey has less control over the horse and the horse struggles to breath correctly.
Black: A horse colour which is black, including the muzzle, flanks, mane, tail and legs unless white markings are present.
Black-booker: A horse to follow after watching its most recent race.
Blacksmith: A specialist in equine hoof care (a Farrier)
Blaze: A generic term describing a large, white vertical marking on a horse's face. The Jockey Club doesn't use blaze, preferring more descriptive words. See snip; star; stripe.
Bleeder: When a horse that bleeds from the lungs when small capillaries that surround the lungs' air sacs (alveoli) rupture. The medical term is "exercise-induced pulmonary haemorrhage" (EIPH). Blood may be seen coming out of the horse's nostrils, known as "epistaxis," although it is typically discovered by a fibre optic endoscopic examination after exercise. Hot, humid weather and cold are known to exacerbate the problem. Less than one bleeder in 20 shows signs of epistaxis. In Australia, a horse is banned from racing for 3 months after the first Bleeding Attack. If it happens again during a race the horse is banned from racing again in Australia for life. Australian racing is drug free, medication to prevent bleeding is prohibited.
Blinkers: A piece of gear placed on a horse to limit its vision to only seeing straight ahead and prevent it being distracted from what's around it.
Bloodstock agent: A person who advises and/or represents a buyer or seller of Thoroughbreds at a public auction or a private sale. A bloodstock agent usually works on commission, often five percent of the purchase price, and can also prepare a horse for sale.
Bog spavin: A filling with excess synovial fluid of the largest joint of the hock called the "tarsocrual joint."
Bolted: Describes a horse that fights the rider and charges along unable to be restrained
Bolted in: Describes a horse that has won the race by many lengths.
Bookmakers/Bookies: The people licensed to place your bet.
Bowed tendon: A type of tendinitis. The most common injury to the tendon is a strain or "bowed" tendon, so named because of the appearance of a bow shape due to swelling. The most common site of injury is in the superficial flexor tendon between the knee and the fetlock. Despite aggressive treatment with anti-inflammatory drugs, physical therapy and rest, horses commonly reinjure the tendon when they go back into racing.
Box/Boxed: Two or more runners to finish in any order in a multiple bet such as Quinella, Exacta, Trifecta.
Box Trifecta: Usually four or five horses are "boxed" in a trifecta. If three of the horses selected all finish in the first three placings, the punter collects for a winning trifecta.
Boxed (in): To be trapped between other horses.
Blows: When a horse is unwanted in betting before the race and the bookies increase the price. For example: a price blows out from $3.20 to $4.50.
Blow up: A horse that finishes weakly through a lack of fitness after looking good in the running of the race. If a horse has not raced for a long time - even if the animal is fit and well - the horse is likely to be tire with the build-up of lactic acid and may be reported to have ‘a blow’, (heavy breathing) after the race.
Bookmakers: A person or company licensed by the government to take bets legitimately.
Box Trifecta: Usually four or five horses are “boxed” in a trifecta. If three of the horses selected all finish in the first three placings, the punter collects for a winning trifecta.
Bridle: Designed to control a horse, a bridle is made of leather and fits on a horse’s head so that other pieces of equipment can be attached. A bridle comprises of a headstall, a bit and the reins. The headstall fits over the head and holds the bit in the horse’s mouth.
Broken Down: When a horse suffered an injury.
Broken Winded: Abnormality of the upper or lower respiratory tract causing loss of normal air exchange, generally resulting in reduced performance.
Broodmare: A filly or mare that has been bred and is used to produce foals
Bucked Shins: Inflammation of the covering of the bone (periosteum) of the front surface of the cannon bone to which young horses are particularly susceptible. This is primarily a condition of the front legs.
Bulbs (of the heel): The two areas on either side of the back of the foot, similar to the heel of the hand.
Bursa: A sac containing synovial fluid (a natural lubricant). The purpose is to pad or cushion and thus facilitate motion between soft tissue and bone. Most commonly occurring where tendons pass over bones.
Bursitis: Inflammation in a bursa that results in swelling due to accumulation of synovial fluid. Capped elbow is inflammation of the bursa over the point of elbow (olecranon process of the ulna). "Capped hock" is inflammation of the bursa over the point of the hock (tuber calcis).
Bute: Anti-inflammatory medication. All horse racing in Australia is drug free, so it must not be present in the horse on race day.
Buy-Back: A horse put through a public auction that did not reach a minimum (reserve) price set by the consignor and so was retained. The consignor must pay a fee to the auction company based on a percentage of the reserve, to cover the auction company's marketing, advertising and other costs.
Capped elbow: Inflammation of the bursa over the point of the elbow. Also known as a "shoe boil." See bursitis.
Capped hock: Inflammation of the bursa over the point of the hock. See bursitis.
Card: Racing fixture or meeting.
Carpus: The knee joint.
Cast: If the horse throws a shoe before the race, either on the course or in the barriers, it may be replaced by the farrier prior to the race.
Cast: A horse has laid down in the barrier stalls or gets cast in its box at the trainers stables and finds it difficult to regain its feet.
Checked: Describes a horse which has received some type of interference.
Chef-de-race: A list of superior sires used in the Dosage formula. Pronounced "chef de RAH."
Choked-Down: When a horse partially swallows its tongue during a race, making it difficult to breathe. Often improved with the application of a ‘Tongue-Tie’.
Claim: A reduction in the amount of weight carried by a horse being ridden by an apprentice.
Class: Describes the standard or grade of a race.
Clerk of the Course: An official often dressed in hunting red, normally riding a grey horse. Duties include leading runners out to the start, assisting with difficult horses and capturing runaways.
Climbing: When a horse lifts its front legs abnormally high as it gallops, causing it to run inefficiently.
Clocker: A person who times workouts and races.
Coat-Tugger: Someone who offers a punter a tip and wants a percentage of the winnings.
Colic: Refers to abdominal pain.
Colours (silks): Owners or trainers coloured jacket and cap worn by the jockey. When the horse’s colours are unavailable for any reason, the jockey is required to wear the race club colours.
Colt: A male horse 3 years old or under that has not been gelded.
Condylar (fracture): A fracture in the lower knobby end (condyle) of the lower (distal) end of a long bone such as the cannon bone or humerus (upper front limb).
Conformation: The physical makeup of and bodily proportions of a horse how it is put together.
Connections: A horse’s owners and their representatives or anyone personally connected to the horse such as the jockey and training staff.
Coronary band: Where the hair meets the hoof. Also called the "coronet."
Correct Weight: Placings in a race are official and any winnings can now be paid out on the race. Correct weight means all jockeys have weighed in correctly at the end of the race to ensure each horse was carrying the correct amount of weight.
Cross-over Noseband: Gear that prevents a horse from opening its mouth during a race
Croup: Along the horse's topline, the area between the back and the tail. A straight, level croup provides maximum outreach of the Thoroughbred's hindquarters as it gallops, producing a longer stride.
Dam: The female parent of a horse. In human terms, the 'mother' of a horse.
Daily Double: Select the winner in two races.
Dead Heat: Two or more horses finishing in an exact tie at the finishing post. For a dead heat the odds of a horse are divided in half to pay out each of the two winners evenly.
Dead Track: Racing surface lacking resiliency, just on the softer side of Good.
Deductions: reduction on the odds on offer when a horse is a late scratching just before the race
Derby: A classic race for 3 year old's.
Distanced: Well beaten, finishing a great distance behind the winner.
Dividend: Places are paid for First (Win & Place), Second & Third (Place only). A fourth placegetter is included for betting on the First Four only, no place dividend is paid on the fourth placegetter.
Dour: An unexciting, plodding horse. Often a stayer (wants further ground).
Dwelt: Refers to a horse that has hesitated at the start and is slowly into stride.
Each Way: Have equal amount of money on the horse for a win and for a place.
Each Way Odds: usually is four to one, you receive all your money back if it comes second or third as long as eight or more runners in race.
Eased: Describes a horse that has been restrained in order to find a better position back in the field. Can also refer to a horses odds increasing in the lead-up to a race.
Eligible: Qualified to start in a race, according to conditions.
Emergency: Additional nominated runners are accepted but will only gain a run if others in the field are scratched. Entire: An ungelded horse.
Entire: a male horse which has not been gelded.
Entrapped epiglottis: A condition in which the thin membrane lying below the epiglottis moves up and covers the epiglottis. The abnormality may obstruct breathing. Usually treated by surgery to cut the membrane if it impairs respiratory function.
Epiglottis: A triangular-shaped cartilage that lies at the base of the airway just in front of the arytenoid cartilages which cover the airway during swallowing. It is normally located above (dorsal) the soft palate.
Epiphysitis: An inflammation in the growth plate (physis) at the ends of the long bones (such as the cannon bone). Symptoms include swelling, tenderness and heat.
Although the exact cause is unknown, contributing factors seem to be high caloric intake (either from grain or a heavily lactating mare) and a fast growth rate.
Even Time: Track work description running 15 seconds to the furlong (200m) (3/4 pace). In a race the average time is 12 seconds to a furlong.
Evens: odds of $2 for a $1 bet
Exacta: Select the first two horses in a race in the finishing order.
Exotics: A multiple bet such as Quinella, Exacta, Trifecta, First Four & Quaddie.
Extended: Running at top speed.
False Favourite: What you'd call a horse that's picked as the favourite but you think shouldn't be the favourite.
Farrier: A specialist in equine hoof care (a blacksmith).
Fast: The firmest track rating.
Favourite: The most popular horse in betting and therefore the one who starts at the shortest odds i.e. the one that will pay the least.
Feature Race: The highest rated race on the card, determined by the category of the race and the prize money.
Fetlock (joint): Joint located between the cannon bone and the long pastern bone, also referred to as the "ankle."
Filly: A female horse three years old or under.
Farrier: A specialist in equine hoof care.
Fast: The firmest track rating.
Feature Race: The most significant race of the day, usually determined by the ratings of the horses involved, its category and the prize money.
Field: The horses in the race.
First Four: Select first four horses in the correct order in a pre-selected race.
First Up: A runner resuming from a spell, being a break from racing for 3 months or more.
First Starter: A horse making his racetrack debut.
Fixed Odds: A bet where you agree to accept the odds at the time of placing your time.
Flat Race: Contested on level ground, not a hurdle race or steeplechase.
Flexi-Betting: To invest a smaller amount than the full dollar value of the wager and receive a reduced percentage of the final dividend.
Fluctuation: Odds movement of a runner moving up or down in the betting market.
Foal: A horse that is not yet one year old. Foals become yearlings in the Southern Hemisphere on the 1st August the year after their birth.
Foal Share: Breeding industry term, where the owner of a broodmare and the owner of a stallion enter a contract where instead of paying the advertised service fee of the sire and owning the resultant foal outright, the broodmare owner offers the stallion owner 50% of the sale price that the resultant yearling achieves through the auction sale ring. Conditions of the agreement include the yearling must be offered for unreserved sale. Also the broodmare owner picks up 100% of the costs from date of birth to date to date of the resultant foal being sold as a yearling.
Fresh: A horse that is resuming from a brief rest from racing (more than 28 days but less than 90 days) has been 'freshened up'.
Frog: The V-shaped, pliable support structure on the bottom of the foot.
Front Runner: A horse who usually leads the field in its racing pattern
Furlong: A scale still used in European and American racing which was used here in Australia before converting to metric measurements. A Furlong is 201.168 metres. In racing we refer to a Furlong as being 200 metres e.g. 3 furlongs = approximately 600 meters. (actual distance is 603.504 metres)
Gait: The characteristic footfall pattern of a horse in motion. Thoroughbreds have four natural gaits-walk, trot, canter and gallop. Thoroughbreds compete at a gallop.
Gallop: A fast canter. Gelding: Castrated male horse of any age
Gaskin: Area of the hind leg between the stifle and hock joints, consisting of the tibia and fibula. (like the human bicep)
Gelding: Castrated male horse. The high majority of male racehorses are castrated to make them more amenable to handling and the act of racing. They do not have the option of a stud career after they have retired.
Girth: An elastic and leather band sometimes covered with sheepskin that passes under a horse's belly and is connected to both sides of the saddle
Glue on Shoes: For a horse with hoof problems, a light aluminium shoe that is attached with tabs to the outside of the hoof. Horses generally do not race as well in glue-on shoes as they do in racing plates.
Good Track: Conditions between fast and slow.
Green: A young and immature horse that is inexperienced in the act and craft of racing. The term ‘to run green’ may also be used. A horse may throw its head from side to side, may not run in a straight line and/or may be ’pulling’ to run a lot faster. These quirks will lessen with experience. Usage of the word “green” (meaning of tender age) originates from the early 1400s.
Grew Another Leg: A fun thing to say about a horse that suddenly improved during the race.
Group Races: The best horse races in the country which are decided by the Australian Racing Board. There are four (4) types of Black Type races: Group 1 (the highest), Group 2, Group 3 and Listed Race (equivalent of a Group 4 standard race)
Half-brother, Half-sister: Horses out of the same dam but by different sires. It does not apply to horses by the same sire
Halter: Like a bridle, but lacking a bit. Used in handling horses around the stable and when they are not being ridden.
Handicap Race: for which a handicapper assigns weights to be carried.
Hand: Standard measurement of a horse’s height described in inches. There are 4 inches in a Hand. The measurement is taken from the ground to the withers (at the base of the neck). The average racehorse is 15.3 Hands High (63 inches) = 1.6 metres.
Hands & Heels: Riding the horse without using the whip. Hang: The horse holds its head to one side during a race.
Hang: the horse holds its head to one side during a race, and wants to run out to that side instead of running straight. Also known as ‘Lugging’. Can be improved by the application of different pieces of horse gear. Can often do this because it is feeling soreness.
Hard-Held: The jockey is restraining the horse from running flat out
Head: A margin between runners which is the length of a horse head. If a horse wins by a head it is a close margin.
Heavy Track: A rain-affected track that is a grade worse under foot than a slow track.
Hock: A large joint just above the shin bone in the rear legs. Corresponds to the level of the knee of the front leg.
Hold all Tickets: Punters are advised not to throw away their bet slips until correct weight has been notified.
Hoof on the till: Expression indicating that a horse is ready to win.
Hoop: Another name for a Jockey.
Horse’s Birthday: For ease of administration of the equine industry, horses are given a common birth date. In the Southern Hemisphere it is 1st August.
Hurdle Race: A jumps race over lower fences than steeplechase races.
Imports: Horses imported to Australia are indicated by an abbreviation the country of their birth, such as New Zealand (NZ) and United States (USA)
Impost: The weight carried by a horse in a race. It's a term most commonly used when referring to horses to carrying top weight or high up in the weights scale.
In Foal: Pregnant mare.
In The Money: The horse finished a race winning some prize money.
In The Red: Odds in the bookmakers ring are very short, less than evens.
Judge: The club official who declares the official placing's for each race.
Jumper: Steeplechase or hurdle horse.
Juvenile: Two-year-old horse.
Keen: The horse wants to go faster than the jockey will allow and subsequently, refuses to settle in a race. The horse may eventually settle down, but the horse is using up more energy than necessary and this is likely to compromise its chance in the race. (Pulling)
Knocked Up: Describes a horse that during a race has noticeably weakened and is in the process of - or has been - passed by the majority of the opposition.
Knuckled: When a horse stumbles forward in a race. Almost fell on its knees or stumbled. It often costs the horse ground or leads to the rider falling off.
Lame: Pain in limbs causing deviation in normal running action or gait. A limp.
Lap Full: The rider has a horse that is going very easily without having been asked to extend
Late Mail: Last-minute tips that take scratchings, jockeys, track conditions and whispers from informed sources into account.
Late Scratching: A runner that is withdrawn from the race after 8am on the race day. If a late scratching is made, the betting odds are adjusted to account for that horse been removed from the run.
Lay: When a bookie offers better odds because they believe the horse can't win. Or the act of betting on a horse to lose on a betting exchange like Betfair.
Lay of the day: A fancied horse considered by a bookmaker to be the one about which he will take the biggest risk.
Length: A horse’s length from nose to tail. If a horse wins by 1 length it has won by about 3 meters.
Let down: A jockey is said to let down his horse in the final stages of a race when asking it for its final effort.
Let Up: A horse that has a break from racing but returns to racing under 90 days.
Long Shot: A runner being at big odds and is unlikely to win.
Lost a leg: refers to a horse that has drifted out in betting e.g. $4 out to $8.
Lugging Bit: For horses that hang out to one side (or 'lug') this bit is applied to make them more tractable.
Maiden: A horse who has not won a race.
Maiden Race: A race for non-winners.
Mail: Information and tips.
Mare: Female horse 4 years old or older.
Mash: Soft, moist mixture, hot or cold, of grain and other feed that is easily digested by horses.
Middle Distance: Racing distance classification that generally describes races in the 1600m-2000m range.
Missed the Kick: Horse was slow to begin out of barriers
Monkey: Five Hundred Dollars. Usually a casino chip.
Moral: What you'd call an absolute certainty to win the race.
Mounting Yard: The area where the horses are paraded right before a race and jockeys get on.
Mudlark: A horse that excels on wet tracks.
Mug Punter: A person who is poor at punting/betting.
Near side: Left side of a horse.
Neck: Margin between horses, about the length of a horse’s neck.
Nominations: The list of horses entered by owners and trainers for a race.
Nose: The smallest measuring margin between horses. If a horse wins by a nose, it was an incredibly close race.
Nose Band: A leather strap that goes around a horse's nose to help keep the mouth shut.
Nose Roll: A sheepskin roll attached to the bridle on the horses nose to keep the head in line with the body.
Oaks: A Classic stakes event for three-year-old fillies over a staying distance.
OCD lesion: A cartilaginous or bony lesion that is the result of a failure in development.
Odds-Against: The prices in the betting ring are longer than even money (e.g. $4.00 for $1.00 invested.)
Odds On: Odds of less than even money.
Off Side: Right side of horse.
Off the Bridle/Bit: When a horse is not travelling easily and pushed along by the jockey as the horse begins to tire and slow down at the business end of race.
One-One: To be one off the fence and one pair back from the front, giving cover.
On the Bridle/Bit: When a horse is travelling comfortably and the jockey is motionless in the saddle.
On The Nod: A person betting with a bookmaker on credit.
On The Nose: To back a horse for the win only.
Over-reaching: Toe of hind shoe striking the forefoot or foreleg.
Overs: The horse’s odds are good value as it has a chance of winning.
Pacifiers: Hood with gauze eye covers to restrict the vision of an excitable horse.
Paddock: Before the race the clerk of the course leads the horses from the saddling paddock to the mounting yard.
Parlay: A bet requiring two or more winners or place-getters to be successful. The bet can be placed over consecutive or non-consecutive races.
Parrot mouth: A horse with an extreme overbite.
Pedigree: A horse that has a known, recorded ancestry. This ancestry is often is tracked by a major registry known as the Stud Book.
Penalty: Additional weight that must be carried by the horse as a result of wins since the initial weights were allotted.
Penetrometer: Reading taken from a special instrument designed to measure the softness of the track. Many readings are taken from all areas of the course, then an overall figure is determined to indicate the condition of the track.
Persuader: Colloquial term for a jockey’s whip.
Photo Finish: A result so close that it is necessary to use a finishing post camera to determine the winner.
Pinhooker: A person who buys a racehorse with the specific intention of re-selling it at a profit.
Pig Root: The act when a horse bucks and tries to throw the jockey, often leading to the horse losing ground in a race.
Place: This is when a horse runs either 1st, 2nd or 3rd and you receive a dividend. There must be eight runners or more.
Plates: Horses wear special shoes for racing, known as racing plates. Its thin, light-weight usually made of aluminium.
Plonk: To put a large amount of money on a horse.
Plunge: A sudden rush of bets for a particular horse, often placed close to the race's jump.
Pool: Total amount of money invested on the tote.
Price: Odds on offer for horses in a race.
Proppy: The horse is walking stiffly, suggesting it might be sore.
Protest: An objection lodged by the jockey, connections or the stewards regarding the outcome of a race.
Protest Hearing: A meeting between the stewards after a race that investigates a “Protest” objection or a possible infringement which may have affected the result of a race. If the stewards deem necessary, the outcome of a race can be changed after an inquiry. (Protest / Stewards Inquiry).
Pulled Up: To stop or slow a horse during the race.
Pulling: The horse wants to go faster than the jockey will allow and subsequently, refuses to settle in a race. The horse may eventually settle down, but the horse is using up more energy than necessary and this is likely to compromise its chance in the race. (Keen)
Punter: A person placing a bet.
Quadrella: Select the winner of 4 pre nominated races on the card.
Quarantine: A process used to isolate foreign horses for a short period of time to ensure they are not carrying any diseases.
Quarter crack: A crack between the toe and heel, usually extending into the coronary band.
Quinella: Select the first two horses in a race in any order.
Racing Plates: While horses are usually trained in shoes, for race-day they are fitted with lightweight racing plates.
Rails: The prime position in the bookies ring where the larger bets are exchanged.
Rails: The fence-like structure that marks the boundary of the racetrack.
Ratings: A numerical figure given to a horse to reflect their chance of winning a particular race after taking a number of form factors into account.
Ridden Cold: the horse was dropped back in the field and saved for one last run at the end of the race.
Ridden Out: Describes a horse that has been vigorously ridden to the line by its jockey without the use of the whip.
Ridden Upside Down: A horse did not race in the way that suits it best, e.g. a front-runner that was ridden at the back.
Rig: A male horse which is a crypt orchid or not properly castrated
Ring-In: A horse that has been illegally substituted for another acceptor in a race. e.g. Fine Cotton Ring-In.
Roaring (laryngeal hemiplegia): A whistling sound made by a horse during inhalation while exercising. It is caused by a partial or total paralysis of the nerves controlling the muscles which elevate the arytenoid cartilages which thereby open the larynx. In severe cases, a surgical procedure known as "tie-back surgery" (laryngoplasty) is performed, in which a suture is inserted through the cartilage to hold it out of the airway permanently. Paralysis almost exclusively occurs on the left side, most frequently in horses over 16 hands high.
Roughie: A horse at a long price in the ring with a much lower chance of winning. If you pick a 'roughie' your winnings will be far higher because of the chances involved.
Runner: What you call a horse in the race.
Running Double: Select the winner in two consecutive races.
Saddlecloth Number: The horse allocated the number one saddlecloth can be carrying the highest weight and/or has won the most amount of prize money or won in the highest class. It does not indicate which Barrier the horse will start from.
Scope: A horse's potential physical improvement as it grows into its frame.
Scratched: A horse which has been removed from a race. Reasons for this can include that there is a better race option for the horse on the horizon, illness, injury, unfavourable barrier draw or at the direction of racing officials.
Sesamoid bones: Two small bones (medial and lateral sesamoids) located above and at the back of the fetlock joint. Four common fractures of the sesamoids are apical (along the top of the bone), abaxial (the side of the sesamoid away from the ankle joint), mid-body (sesamoid broken in half) and basilar (through the bottom) fractures.
Sesamoid (fracture): Fracture of the sesamoid bone. Fractures can be small chips or involve the entire bone. Surgical repair is often done by arthroscopy.
Sesamoiditis: Inflammation of the sesamoid bones.
Second Up: Next run after a first-up run.
Sectionals: Intermediate times recorded during a race.
Shadow Roll (Nose Roll): Usually a lamb's wool roll half way up the horse's face to keep him from seeing his own shadow.
Shin sore: Inflammation of the membrane of the cannon bone.
Silks: The often brightly coloured and patterned jacket and cap worn by jockeys in a race. Silks are generally in the colours of the most prominent owner of the horse or in the trainer's racing colours.
Sire: The male parent of a horse. In human terms, the father.
Sling: A sum of money given as gratuity or bonus generally by an owner to a trainer, jockey or strapper.
Slipped: A breeding term meaning spontaneous abortion.
Slow: A track rating between Dead and Heavy.
Smoky: A well supported horse with no apparent form to justify its price.
SP Bookmaker: An illegal bookie, a person that takes bets without a license.
Speedy Squib: A horse that goes fast early but gives in easily when put under pressure.
Spell: A horse that has had a break from racing for 90 days or more.
Stallion: A male horse that has not been gelded (castrated). Also describes male horses whose racing deeds and pedigree are such that it is desirable to breed from him.
Stayer: A horse that races in long distance races — 2,000 metres and more.
Steeplechase: A race in which horses are required to jump over a series of obstacles.
Stewards: Racing officials responsible for enforcing the rules — basically the referees.
Stewards Inquiry: A meeting between the stewards after a race that investigates a “Protest” objection or a possible infringement which may have affected the result of a race. If the stewards deem necessary, the outcome of a race can be changed after an inquiry. (Protest / Protest Hearing)
Stone Motherless: How to describe the horse that comes last in the race.
Straight Six: Select the winner of six consecutive pre-nominated races.
Strapper: The Groom, a person employed by the trainer to attend to a horse. Duties may include feeding, grooming, riding at training and leading in the mounting yard.
Stud book: Registry and genealogical record of Thoroughbreds, maintained by the Jockey Club of the country in question.
Suspension: The period of time a jockey or trainer is suspended due to an infraction of the rules of racing.
Swimmer: Horse which performs very well on rain effected tracks.
Swayback: Horse with a prominent concave shape of the backbone, usually just behind the withers (saddle area). Scoliosis.
Swooper: A horse whose style of racing is to race near the back of the field before unleashing a fast-finishing burst towards the finish line and often down the outside portion of the track.
Teaser: A male horse used at breeding farms to determine whether a mare is ready to receive a stallion.
Thick Winded: Heavy breathing (panting) due to lack of fitness or obstruction in the windpipe.
Thoroughbred: A breed of horse used specifically for horse racing.
Three-quarter-brother (or sister): A term used for horses out of the same dam, but are by a sires that are half-brothers or who are by the same sire.
Thumps: Similar to human hiccups, can occur when the horse is exhausted or dehydrated.
Top Fluctuation/Top Fluc: A bet type which gives you the highest odds during on-course betting. These bets generally need to be placed at least half an hour before the race.
Tongue Tie: A device fitted around a horse's tongue to prevent the tongue lifting and obstructing air-flow. A tongue tie may be applied if a horse is suspected to have a problem with its breathing. Tongue ties also prevent a horse putting its tongue over the bit, which can compromise a jockey’s control and potentially jeopardise the safety of horse and rider.
Track Conditions: The rating given to a racetrack on race day.
Treble: A bet involving three consecutive races nominated by the TAB.
Trifecta: A wager selecting the first three runners of a race.
Triple Crown: A term for the three-year-old Randwick Guineas, Rosehill Guineas and the AJC Australian Derby.
Two Year Old Triple Crown (also known as the Two-year-old Grand Slam): Consists of the Golden Slipper Stakes, AJC Sires Produce Stakes and the Champagne Stakes.
Twitch: A restraining device usually consisting of a stick with a loop of rope or chain at one end, which is placed around a horse's upper lip and twisted, releasing endorphins that relax a horse and curb its fractiousness while it is being handled.
Tying-up (acute rhabdomyolysis): A form of muscle cramps that ranges in severity from mild stiffness to a life-threatening disease. A generalized condition of muscle fibre breakdown usually associated with exercise. The cause of the muscle fibre breakdown is uncertain. Signs include sweating, reluctance to move, stiffness and general distress.
Under Double Wraps: Describes a horse who is travelling well without any urgings from its jockey. Won easily without extending to its full ability.
Unders: A horse whose odds are too low in relation to its chances of winning. e.g. Taking 'unders' means you've bet on a horse at odds which should have been higher.
Untried: Not raced or not raced at a certain distance.
Wager: A bet.
Walk Over: A race with only one runner. In these races, the horse must be weighed out, mounted and ridden past the judge’s box. The horse will be liable to carry extra weight as the winner of the race and only half the prizemoney is awarded.
Warned Off: A licensed person is forbidden from entering a racecourse or associating with other licensed people.
Weanling: A foal that is less than one-year-old that has been separated from its dam.
Weigh-In: The Clerk of the Scales will weigh the winning rider and their equipment, along with the jockeys who finished in the places.
Weigh-Out: The Clerk of the Scales will weigh all riders and their equipment, to ensure all horses will carry the allotted weight in the upcoming race.
Welter: A handicap race with a higher minimum weight
Wind Sucker: A horse that clings to objects with its teeth and sucks air into its stomach.
Winners’ Enclosure: The horse that has won the race – along with the horses who have finished in the places - will be led back to the winners’ enclosure and walked around briefly while spectators can watch and applaud. Any trophy presentation to winning owners will also take place here.
Weight For Age: Fixed scale of weights to be carried by horses.
Well-Held: The horse won easily without being fully extended. Win: Your selection crosses the line first and correct weight it given.
Winkers: Sheepskin which attaches to the cheek straps of the bridle to keep the horses attention forward.
Withers: Area above the shoulder, where the neck meets the back.
Wobbler syndrome: Neurological disease clinically associated with general in-coordination and muscle weakness. Can be caused by an injury to the spinal cord in the area of the cervical (neck) vertebrae or is associated with malformation of the cervical vertebrae.
Write Your Own Ticket: The horse is so unlikely to win a bookie would give you any odds you asked for.
X-Ray Repository: A secure facility on the grounds of an Auction House accessible only by licenced veterinarians where surgical reports and current X-Rays are lodged for each yearling being offered for sale. On behalf of potential buyers, veterinarians may review and identify potential risks in the skeletal structure of the horses that may potentially limit the horse from achieving a racetrack career. Each horse offered for sale must have no less than 36 X-Ray views submitted.
Yearling: A young horse, typically two years old.
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 20 share “Co-ownership” horses.
Why 20 Shares ?
Under the Australian Rules of Racing the industry allows up to 20 shares in a racehorse.
As of 1st January 2017, ASIC has allowed an exemption where you may now have up to a maximum 50 participants (owners) who between them, own these 20 shares in any publicly promoted horse.
Therefore co-ownership is no longer restricted to one owner per 5% share. Two (2) or more people many join together to purchase a 5% share between them in a syndicate arrangement.
The obligation is on the promoter to ensure that at all times, the total promotion of 20 shares does not exceed a total of 50 people.
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 1-20 OWNERS of a horse. From a legal perspective, you have a Partnership or a Co-ownership. Dynamic Syndications create 20 share Co-ownership agreements.
What is a Racing Syndicate?
Should 2 - 20 people combine to buy one or more share/s in a racehorse, this situation is referred to as a "Racing Syndicate". Whilst all syndicate owners are registered with the Racing Authority, under the Australian Rules of Racing, individual syndicate members with less than a 5% equity shares are not permitted to receive individual OWNER privileges. However for that Racing Syndicate, the Syndicate name appears in the racebook and the Manager of the Syndicate receives the owners entitlement.
At Dynamic Syndications we arrange 20 share CO-OWNERSHIPS which attract FULL OWNERS PRIVILEGES.
We also assist our owners in the creation of syndicates for multiple owners to join together to purchase a share in any of our promotions.
Am I locked into the Share as a Co-Owner?
In any racing partnership created by Dynamic Syndications - you own your 5% 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.
However, for avoidance of any doubt: There will be no ready market for the Shares.
Neither the Syndicate Manager nor the Racing Manager will be obliged to sell a Share on behalf of an Owner.
Each Owner should consider the acquisition of a Share as a long term investment for the life of the Syndicate.
Fluctuations in the value and sale price of Shares should be anticipated. Factors which will influence both the value and sale price of the Shares include, without limitation, the following:
(a) the skill and expertise of the individuals engaged to manage, maintain and market the Horse, as well as the manner in which
these functions are carried out;
(b) the race performances of the Horse;
(c) the Horse may die or its value may be diminished as a consequence of accident, injury, contraction of disease or natural cause;
(d) the level of demand for horses of equivalent calibre both at public auction and by private treaty;
(e) the level of supply of horses of equivalent calibre both at public auction and by private treaty;
(f) any change in the current conditions affecting investment in the thoroughbred horse industry, including level of prize money and taxation
benefits available to breeders;
(g) changing conditions within the Australian economy generally; and
(h) the price which buyers at public auction or by private treaty are willing to pay either for the Horse, or Shares in the Horse,
if offered for sale, may not reflect either the purchase price paid by the Offeror for the Horse or the sale price of the Shares offered
under this PDS.
If I want out of the horse and can't find a buyer - can I give the share away?
NO (but in reality = YES)
The technical reason behind the NO answer is that there is a liability of debt being incurred on the horse on a daily basis which must be met 100%.
Each shareholder is liable for their share of the expenses.
HOWEVER in 99% of circumstances one of the other co-owners should/would agree to pick up the share.
Under the Racing Syndicate Deed there is a pre-emptive rights clause that ensures current co-owners have first right of refusal so are offered the share through Dynamic Syndications as the Administration Manager to the promotion.
Dynamic Syndications will assist facilitate the disposal of the share wherever possible.
What obligations am I under when I agree to become a Co-Owner in the horse?
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 $58.00 per week, (equivalent to $8.20 per day) over 12 months, on a worse case basis should meet all expenses.
If I want out - how do I get out? & ..... What will my share be worth?
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 (Dynamic Syndications) and then you as the vendor will need to arrange for an independent valuation from one of the thoroughbred Auction Houses. Then under a pre-emptive rights provision, you 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 longstanding member of the Bloodstock Agents Federation of Australia.
He will have an accurate assessment to what the horse is worth.
We require co-owners looking to sell their share to obtain an independent market appraisal from either auction house (Magic Millions or William Inglis), prior to offering any share for sale.
Management Fees - Why do I pay them & ..... Do I get Bang for Buck?
Information About Management Fees
Professional Licensed Promoters include Management Fees in the Product Disclosure Statement for the day to day Management of the horse throughout its Racing Career.
Management of a horse by a Promoter is considered important to most if not all investors, as certain Promoters may have extensive experience in the industry.
For example Dynamic Syndications Managing Director has been an active and independent racing industry participant, forging a career as a Bloodstock Agent and Syndicator since 1984.
Investors should consider the monthly management service and fee as detailed in the Product Disclosure Statement (and Racing Syndicate Deed) for the services provided and ask any questions of the Promoter after reading the detailed information set out below:
Investors should note that under the agreement to provide a management service, it’s only for the racing career of the horse until the co-ownership of the horse is dissolved upon racetrack retirement and does not extend beyond this into its breeding career (if applicable).
Q) What does the Racing Manager do for the Co-Owners ?
A) Ensure YOU'LL BE THE BEST INFORMED OWNER IN RACING !
Our business philosophy is to Ensure Our OWNERS are treated as VIP's
With Team DYNAMIC - You WILL BE the BEST INFORMED Owner in Racing !
To provide this service across the board to ALL DYNAMIC OWNERS is understandably exceptionally time consuming across several dedicated staff. Our team has the specialist knowledge of the workings of the thoroughbred industry. It also requires ongoing compliance for every promotion with annual auditing requirements.
Ensuring that the service we offer is in line with our position of being the “Market Leaders in Racehorse Syndication” wherever possible, we will always attempt to make the extra efforts for our Owners.
DYNAMIC SYNDICATIONS SERVICES ~ EVERY MONDAY IS UPDATE DAY ~ we provide our OWNERS with:
* Updates: By Email, Text along with Pictures and Audio Reports and then onto Phone calls when the horse
is ready to go!
* Minimum of 1 weekly update when your horse is in the spelling paddock, along with photos and / or video
of your horse once a month whilst spelling.
* Weekly updates when your horse in early training.
* Along with weekly updates when your horse in early training, you will also receive Fortnightly pictures and
or videos of your horse in early training.
* Twice a week reports when your horse is up to Fast Work (galloping along) with weekly pictures.
* We attend trackwork at Randwick each week and interview our trainer about Dynamic Horses in work which
we post in your electronic mailbox and online.
* Pre-Race Day: Receive as they close, the NOMINATIONS, WEIGHTS and ACCEPTANCES sent directly by
Email and Text.
* Pre-Race Day: Receive a Full Race Preview including: SPEED MAPS, RATINGS, PRE-RACE PRICES,
PREDICTED DANGERS and RACE TACTICS.
* Pre-Race Day: Receive a Phone call from our dedicated Client Liaison Officer who will discuss the information
provided and attempt to assist where possible, any request for additional ticketing.
* Pre-Race Day: Receive contact via an Audio Report from your trainer delivered by Email / Text.
* Trainer / Stable Representatives and Team Dynamic (unless physically impossible e.g. Runners at 3-4 different venues on same day) one of our Team will always endeavour to be on course with you on the days your horse races, to assist making your day enjoyable.
* We meet and greet you and complete formal introductions to your fellow co-owners, we introduce you to your jockey and we ensure you are in the inner sanctum of pre-race tactics between your trainer and jockey. We watch the race with our Owners and post-race include you in the inner sanctum to hear the report directly from the jockey and then, we attend the post-race rooms with our owners to watch replays and explain the how the race unfolded.
* We escort our Owners to the area to lead your horse back to the Winners Circle for feature race wins.
* We ensure as an Owner you and your guests, join the horse, the trainer and fellow owners in the Winner's Circle and get your photos taken everytime you win – wherever your win maybe !
* Dynamic Syndications provide our Owners with a complimentary RACE WINNING DVD
* We organise for our Owners the opportunity to purchase replica Trophies, Sashes, Rugs or any other trinkets won by your horse for that race.
* We have organised a Dynamic Syndications group discount with Bradley Photographers, the NSW based racetrack photographer, for our Owners to order their framed winners photo.
* We represent ALL OWNERS should your horse be involved in a Protest Hearing after a race. Dynamic Syndications Managing Director has been a continual Racehorse Owner since 1981 and held a Racing NSW Trainers Licence in the SERA. We are well placed to deliver an informed debate on behalf of our Owners to any inquiry. This can be vitally important as many thousands of dollars rests on the results.
A working example was when our syndicated horse HONOR IN WAR finished 2nd in the AJC VILLIERS Stakes Gr2 behind TAKEOVER TARGET. We lodged an objection and put forward our opinion to the Stewards. Our protest was upheld and the race result was corrected – We WON !
Another working example from the opposite position was when we were first past the post with our horse MIDNIGHT AT ASCOT in the Magic Millions Country Cup on Magic Millions Day.
We were subject to a protest by the runner up where that horse’s rider said our horse interfered with his mount over the final 200m. On behalf of our owners we put forward our view that the interference claim was caused in the most part by the Runner-up. The protest was dismissed and we retained the race.
Our experiences in the Thoroughbred Industry with our Managing Director being a constant Racehorse Owner for over 35 years, having been a racehorse trainer and working hand in glove with the Australian Rules of Racing with respect to both racing and compliance, cannot be underestimated as an important asset for your horse.
* Arrange Stable inspections to visit your horse at the racing stables. Bring your Family & Friends along with you. These are available every Sunday when in training or as pre-arranged by Dynamic Syndications on your behalf with the stable.
* Arrange Spelling Farm inspections to visit your horse when out of training. Again organise to bring your Family and Friends with you. These are available most days by pre-arranged appointment by Dynamic Syndications on your behalf with the spelling farm.
* We handle all Racing Administration requirements for the horse with the Racing Authorities. For example,
we handle all the paperwork required when a change of ownership takes place.
* We work with each supplier of the services to your horse, making sure their data is correct.
* We assist all suppliers of the services to your horse with their accounts processes.
* We explain and educate for all our Owners with regard to understanding accounts and services supplied from
trainer, spelling farm, veterinarians, pre-trainer, insurer, etc.
* We assist our Owners claiming their eligible Bonus Monies or Vouchers when your horse wins.
* We assist our Owners in the creation of private / company syndicates to purchase a share.
* We assist our owners claim their BOBS Vouchers to put towards purchasing shares in new yearlings.
* We assist our Owners with any Prizemoney queries you have after you are paid directly from the
* We assist the trainer by organising your horse to be transported from the stables to the spelling farm or
from the spelling farm to the pre-trainers.
* We work with the Spelling Farm and Pre-Trainers to ensure constant information flow between Dynamic
and the Trainer, so the horse is out for the correct required period. That means, if it needs 12 weeks it is not
brought back in after 8 weeks by a stables administration error or not forgotten and still in the paddock after
16 weeks, etc.
* We take all the work off the Trainer and Stable Staff ensuring ALL our owners are fully informed.
We work very closely with the stables.
* We attend trackwork at Randwick every Wednesday morning at 4:30am and post online a video.
* We attend the stables of our Randwick based horses every Sunday morning to see your horse when it’s in work
so we are fully aware of any setbacks or injuries.
* We attend stables at other racetracks also on a regular basis to see your horse it’s in work.
* We do the Race Programming of ALL HORSES under our management in consultation with the Trainer. This ensures “your horse will never be lost in the system.” We work together with the trainer in the management of the horse to ensure every racing opportunity is identified and made available to your horse.
Our industry is one where goals and dreams change daily, because we are working with living animal that can’t communicate and in racing we are subject to the weather, we are not working with a machine. We are required to be flexible and have various stepping stones as alternatives, to give your horse every opportunity to succeed.
* We handle the jockey bookings in most circumstances in consultation with the Trainer.
* We work directly with our Veterinarians ensuring wherever possible, preventative measures are in place to limit the risk of severe injury. Also to ensure the best rest and recovery practices are maintained and delivered.
* INVITATIONS to regular Stable / Owners functions – These are complimentary for all current Dynamic Owners. Our Team at Dynamic attempt to host 2-3 functions per annum.
* STABLE MAIL - Each Friday our owners have access via their electronic mailbox to an outstanding tipping service along with the Stable's Best of the Day for Saturday's races.
* CORPORATE BOOKMAKER BONUS – We have a working relationship with a leading Corporate Bookmaker that ensures our Owners get the Best Prices available on your horse when it races and a massive incentive when your horse debuts as a 2yo. We will assist all owners to take advantage of this opportunity if you wish to sign up to their service. (Conditions apply)
This will ensure even when your horse is in the spelling paddock, that your involvement and interest with our team can still be as profitable as possible.
We work on the philosophy of low margin / high volume. We keep this fee down to rock bottom and spread it across ALL Horses under our management. This fee is to help us offset all the expenses we incur such as: Wages, Rent, Electricity, Telephone, Text, Industry Specific Software Fees, Annual Legal and Audit Fees, Travel, Banking / Merchant Services / Eftpos fees, Professional Indemnity Insurance, etc, etc, etc, ensuring you are the BEST INFORMED OWNER in the industry.
Our Management Fee is currently set at $69.00 + GST = $75.00 per Calendar month.
That’s $2.26 per day + GST = $2.49 Per Day including GST.
MANAGEMENT FEES are payable by every Co-Owner under Dynamic Syndications.
The Fee is capped at 2 horses.
Owners with shares in 3 or more horses with Dynamic Syndications will only pay the costs to the maximum threshold for 2 horses = $150.00 including GST
How to Read and Understand a Horse Sale Catalogue Pedigree Page
The catalogue is the book which outlines in written format each horse in a sale.
Each page in the catalogue describes a different horse and their pedigree (family ancestry tree).
Each thoroughbred pedigree concentrates on the female family not the male line.
Why? Because a mare can only produce one foal per year, whilst a Sire could cover up to 250 mares in a year. Therefore it’s the mares’ families where the commercial value of a young thoroughbred is realised.
Arguably the most important indicator for commercial value are twofold: The commercial demand of the Sire (Service Fee and Racetrack success of his progeny) and BLACK-TYPE.
What is BLACK-TYPE?
It’s the common industry term used to describe Bold Print on the catalogue page.
When a horse Wins a Stakes Race (Group 1, Group 2, Group 3 and Listed Race) the horse’s name is recorded in BOLD UPPERCASE.
If a horse was placed 2nd or 3rd in one of these Stakes Races the horse’s name is recorded in BOLD LOWERCASE. If a horse runs 4th in one of these races, no bold type is added to the horse’s name however the race is recorded on the page the 4th is in bold.
Simply the more BOLD print (BLACK-TYPE) on the catalogue page equals the more high quality horses in the female family. As a flow on, the more high quality horses the more commercially appealing the horse is to the market.
A pedigree provides extensive details about the relatives of each yearling offered (e.g. how many foals / winners the dam has produced, the race performances of each dam and their offspring).
All catalogue pages have certain structural similarities.
Horses appear in the catalogue and through the sales ring in Lot number order, beginning with Lot 1.
In the high majority of cases, Lot numbers in a sale run in the alphabetical order of the 1st Dam (mother’s) name. The catalogue starts with a random letter of the alphabet and rolls through in alphabetical order.
Each horse actually wears this Lot number as a sticker placed on its hips to identify it as the correct lot being offered in the sale ring.
To familiarise yourself to the page layout, from top to bottom.
The majority of the information on each catalogue page in the sale of yearlings, 2-year-olds, horses in training, tried horses, weanlings and breeding stock, pertains to the dam's side (mother's / female’s) side of the family: (1st dam, 2nd dam, 3rd dam, 4th dam, etc.).
The first dam is the (mother) of the horse being sold
The second dam is the grand-dam (grandmother)
The third dam is the next generation. (Great-grandmother)
The fourth dam is the next generation (Great, Great-grandmother)
Other information contained on the page, from top to bottom such as:
Lot Number Assignment
Name of Vendor
Where the horse is located at the sales complex, (Stable Number and Box Number Assignment)
Colour/Sex and Foaling Date of the horse
Four generation tabulated pedigree
Sire Information: Delivered in Short Form including: Synopsis of the sire's race record (including honours he may have earned) and highlights of his career as a stallion.
Female Family: Information about successful members of the horse's female family.