Q: Why did you start the Dream Team Racing Stable, LLC?
A: We started the Dream Team Racing Stable, LLC as a direct result of several friends, business associates, and relatives expressing an interest in investing in a racehorse on a limited basis. Many of our colleagues and friends have witnessed Dr. Culver’s success and have expressed an interest in getting into the business with a minimal amount of investment and a need to diversify the inherent risk associated with horse ownership. Affordable ownership at reduced risk with our unique perspective should be an asset to all our partners.
Q: What does it cost to purchase an interest in a racehorse?
A: Thoroughbred racehorses range in price from as little as a few thousand dollars to as much as fifteen million dollars or more. The Dream Team Racing Stable, LLC concentrates on horses in the value range of up to $150,000 or so. We believe that this price range adequately allows us to compete at the highest levels of the racing industry. Although the odds of finding a better horse slightly increases with price, we believe that the additional cost to purchase a $500,000 horse is not worth the slight increase in odds that it will perform better and/or make more money. In addition, all our offerings are priced at actual cost. We do not mark-up any of our offerings.
Q: What is the smallest percentage of a horse that you can purchase?
A: At Dream Team Racing Stable, LLC, you can purchase as little as 1% (one percent) of any of our offerings. We highly recommend that you minimize your risk by diversifying. For example, we suggest that rather than buy 3% of a horse, you purchase 1% of three horses. That way, should one horse not perform up to expectations and/or be impacted by illness or injuries, you still have two other horses to help carry the cost.
Q: Who makes decisions regarding the racehorses?
A: All of our owners collectively make decisions regarding the horses based on the percentage of ownership. Owners decide all issues. The racing manager serves as a communication conduit and will poll all owners regarding all decisions. In the event of an emergency, that does not allow us enough time to poll the owners, the racing manager will make the decision, keeping in mind that he/she should always act in the best interest of both the owners and the horse.
Q: Are there additional costs for owning a racehorse.
A: Yes. As part of purchasing an ownership interest, owners must pay their share of the monthly expenses of each horse. All expenses are budgeted for annually and owners are billed quarterly in advance. Your share would be based on the percentage of ownership that you purchased. For example, if you purchased 1% of a racehorse, your monthly expenses would be approximately $22.49 per month until it begins training on the farm. Once it begins farm training, the cost goes to $33.74 per month. Once it ships to a racetrack, the cost goes to $44.98 per month, which it stays at for the racing career of the horse. We budget for typical expenses, but we do not budget for extraordinary expenses. For example, should a horse require surgery, an additional cost would be shared by all the owners based on the ownership interest. This is very rare, but it can happen.
Q: Are there any risks associated with racehorse ownership?
A: Yes, and to be quite frank, the risks can be huge. Horses are wild, fragile animals and are susceptible to illness, injury, lightning, hurricanes, and death. Before you invest in this business, you must be willing to accept these risks – no matter how small they might be. Basically, if you get involved in the game, you should be willing and capable of accepting the inherent risks of horse ownership.
Q: What types of horses do you focus on?
A: You might note that most of our horses tend to be fillies. This is done intentionally, because fillies may have residual value after their racing careers as broodmares. Many fillies go on to breed and therefore usually offer some residual value. The residual value is usually directly related to the success of their racing career and their blood-lines. Colts, on the other hand, rarely have any residual value. In order for a colt to have residual value, it must be one of the best racehorses in the country and/or have exceptional blood-lines. Less then 1% of colts have any residual value at the conclusion of there racing career, while probably 80% of fillies have at least some residual value as a potential broodmare. The residual value of a filly makes investing in fillies much more attractive to our partners. Occasionally, we will offer a colt, but we generally concentrate on fillies.
Q: Do you have to be licensed to own an interest in a racehorse?
A: Licensing laws vary by state and the percentage of ownership interest that you have in a horse. In New York and Florida you are required to get a license. The Dream Team Racing Stable, LLC will assist you through this process once you purchase an ownership interest in one of our racehorses.
Q: When and how often do I get paid?
A: Purses are distributed monthly, at the end of the month in which the check is received. Typical fees are deducted by the track and commissions for the jockey and trainer are also deducted. For example, if a horse wins a maiden special weight race at Belmont, it typically earns a purse of about $31,000. After all appropriate fees are deducted and a fee paid to the trainer and jockey, the net proceeds typically are about $23,000. If you owned 1% of that horse, you would receive a check for $230.
Q: Does the Dream Team Racing Stable, LLC charge a management fee?
A: No. Unlike many racing partnerships, we do not charge a management fee. We make money just like you do – by owning a percentage of the horses and having those horses win races.
Q: Where do you stable Dream Team Racing Stable, LLC horses?
A: All horses are initially stabled at Belmont and Calder. While it is important to race horses at levels at which they can compete, we recognize that Belmont and Calder represents the highest level of racing. If a horse can not compete at that level we will look for the trainer to recommend a track at which the horse might better compete. Then collectively, all the owners will make a decision.
Q: What are the benefits of ownership?
A: The benefits of ownership are numerous. Some owners will take great advantage of the benefits while others may never partake of any of the benefits. A partial list of the benefits is as follows:
Free admission to the track.
Free programs at some tracks.
Free owners parking at most tracks.
Paddock attendance before all races.
Track attendance in the morning to watch workouts.
Free visitation to the barn and back-stretch area.
Visits during hours not open to the public.
Watching races from the owner’s box.
Pride of ownership.
The thrill of victory.
Attending the winner’s circle photo.
Meeting and socializing with other owners.
Heart-pounding excitement.
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