The ABCs of Syndication
Horse ownership syndication is when a group of people purchase shares in a promising or proven horse for a professional dressage rider. These shares not only cover the actual cost of buying the horse, but also the annual costs needed to maintain the horse. For example, if you are joining a horse ownership syndication, which offers 10 shares, then you and 9 other people will own that dressage horse and help maintain the costs of your dressage horse on an annual basis. The good news is that these costs are shared and predetermined; syndications come in many affordable price ranges. The benefits of syndication beyond the financial advantage are many. Some of note: having many horse owners can actually make it less hectic for riders at shows as owners plan events for themselves leaving the rider free to plan training times and strategies. The owners often sit together and present a formidable cheering section providing much needed support in times of glory and defeat.
What Does Syndication Cost?
Because you share costs with your fellow syndicate horse owners, you don't have to be wealthy to be a syndicate horse owner. The shared costs for owning and maintaining a dressage horse can vary greatly. As such, the syndications presented here come in all shapes and sizes to fit all kinds of interests and budgets. For example, if your goal were to help an emerging rider with a promising future find a young horse, the syndication costs would be notably less than if you opted to help an elite rider obtains a new horse aiming for the next Olympics. In some cases, riders may already own their horses, but have no financial means to continue to campaign them. In these cases, some riders may opt to sell a portion of their horse in exchange for annual maintenance support—enabling them to continue with training and competing.
You can join a syndicate already in progress or you can gather a group to purchase a syndicate together. For example, maybe a group of friends from your barn want to form a syndicate group for a particular rider. (The accomplished racehorse Funny Cide is a great example of a successful venture among a group of friends). The bottom line is, whether alone or with a group, our riders are looking for your support and want you to join their team!
Buy In: This is the one-time amount you pay to purchase your share of the horse.
This amount can vary widely depending on level of training, potential and competitive success of the horse.
Annual Maintenance: This is the annual cost you contribute to keep your horse going.
The annual maintenance cost helps cover lessons and training, competition entry costs, monthly boarding, shoeing, equipment, tack, veterinary care, insurance, and shipping to national and international destinations. This cost will vary based on the competition level of the horse and rider. This cost is split equally among the syndication members—(it would cost a syndicate member $2,500 a year for a horse requiring a $25,000 annual maintenance fee split among 10 owners). It is important to note, however, that a horse climbing up the ranks will incur additional annual expenses once it reaches the international level.
Tax Advantages: As a syndicate horse owner, you may enjoy tax benefits, but you must discuss this with your financial planners.
How Do I Get Started?
You can start here, right now! This website has been developed to facilitate the creation of syndications. Our goal is to assist prospective owners like you, and professional riders, in the formation of successful new partnerships. Please see Syndication Ownership Matches.
Contact the Rider:The riders who have listed their profiles would love to talk to you! You are invited to call or email them directly. You can also arrange to meet with them at a competition or at their barn to get to know them and their team. Please see Syndication Ownership Matches.
Arrange a Contract: Once you have selected a syndicate, you will need to enter into a contract, detailing the terms of the syndication, with the rider. We have outlined a checklist of various items that you should consider in the successful formation of a dressage horse syndicate. Please click here to view the checklist.
Your own attorney can draw up a Syndication Agreement for your partnership. It is highly recommended that you work with an attorney experienced in creating horse syndicates.
The Dressage Owners Task Force has negotiated a favorable flat fee with attorney Yvonne Ocrant who has already created over 50 equine syndicates in various disciplines including eventing, dressage, and jumping. Mrs. Ocrant's law practice focuses on equine industry matters and she represents clients competing syndicated horses at the highest levels of their respective sport. Mrs. Ocrant tailors each syndicate for the specific interests of the parties and no two syndicate agreements are the same. As a courtesy to the Task Force and her own passion for equestrian sports, Mrs. Ocrant will provide you with a free initial consultation and answer any questions you have about horse syndicates, whether you are a rider, an owner, or someone interested in becoming a syndicate member. The one time flat fee covers the legal fees and costs to create the syndicate, draft the syndicate operating agreement, and obtain the necessary documentation for the syndicate to operate in any state. Please mention you were referred to her by the Dressage Owners Task Force to take advantage of the exclusive negotiated free consultation and favorable flat fee.
Ms. Yvonne Ocrant
Hinshaw & Culbertson, LLC
222 North LaSalle Street
Chicago, IL 60601