PURCHASE PRICE

This is the upfront cost to purchase your ownership share.

HOW WAS THE SHARE PRICE DETERMINED ?

All shares we offer for sale to the public reflect: Purchase Price, GST, Breaking - In & Education, Race Series Nominations (where applicable), Vet Reports, Agistment, Transport, Farrier, General Veterinary Costs, General Holding Costs, etc. from date of purchase to the present time.

As holders of Australian Financial Services Licence Number 286961 - Upon application for further information concerning any horse we have available, our company will forward to you a PRODUCT DISCLOSURE STATEMENT as required at law by the Australian Securities and Investment Commission. This document highlights specific information relating to the individual horse (pedigree, vet report, etc.,) and cost structure.

AM I JOINING A PARTNERSHIP OR SYNDICATE ? - WHAT'S THE DIFFERENCE ?

Under the Australian Rules of Racing you may only have between 1-10 OWNERS of a horse. This is called a PARTNERSHIP.

You can have 11 - 100 people combine to race a horse and this situation is known as a SYNDICATE. Unfortunately syndicate members do not receive the same privileges as an OWNER. Our company seldom offers a syndicate arrangement. We normally arrange 10 share PARTNERSHIPS which attract FULL OWNERS PRIVILEGES.

AM I LOCKED INTO THE PARTNERSHIP ?

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

WHAT OBLIGATIONS AM I UNDER IN THE PARTNERSHIP ?

You are contractually obligated to meet your percentage share of the expenses incurred by the horse throughout its racing and breeding career, whilst you remain the owner of that share. During its racing career we estimate a budget $48 per week, over 12 months, should meet all expenses.

IF I WANT OUT - HOW DO I GET OUT ?

A share in a racehorse is a re-salable 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 our partnerships (refer to our specific PDS), we require the partner wishing to sell their share to contact the Administration Manager and 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.

Basically, partners 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.), 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, 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 be negotiated.

WHAT WILL MY SHARE BE WORTH ?

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

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

WHY DO MOST SYNDICATORS OFFER SHARES AT A PRICE INCLUDING GST AND JUST A FEW OFFER SHARES + GST?

No answer can be offered as to why just a few syndicators offer a share price + GST. Under the Taxation Act, it is illegal to offer a price to a retail client + GST. All purchasers of publicly promoted shares are considered “retail” clients as defined under the Act.

To offer (advertise) a share + GST is considered deceptive and misleading conduct under the Act.

Naturally, questions will then follow regarding that promoter’s integrity and disclosure issues.

If a promoter is prepared to deceive as a marketing ploy relating to the sale price then what else may be deceptive? Potentially in the budgeted holding costs is a common area where this practice exists when a few promoters intentionally downplay the expenses likely to be incurred in year one.

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

WHAT PRIVILEGES DOES OWNERSHIP BESTOW ?

Name in Racebook, Opportunity to lead your horse back to the Winners Circle for feature race wins, Raceday tickets into the Members Stand, Passes to enter the saddling enclosure with your trainer to talk with your jockey, Invitation by the hosting race club to the winning owners room after your horse has won to enjoy their hospitality, Access to the tie-up stalls on raceday, Access to special owners and trainers areas (where available), Individual accounts issued to you directly, Individual contact with the stable, Invitations to stable functions, etc.

HOW DO I KNOW IF THE HORSE PHYSICALLY O.K ?

Our company supplies an independent veterinary report on each individual horse offered to the public.

INSURANCE

Promoters are not considered insurance agents under the Act. We include insurance from the fall of the hammer for a finite period to an expiry date of the 1st November in the year of purchase of the yearling. On this date each, each shareholder may individually insure their share at their own expense should they wish to do so. The promoter does not act as an insurance agent but is able to put individual shareholders in contact with insurance providers. On behalf of our owners, if required we will complete and forward all necessary documentation to the relevant insurance provider.

HOLDING COSTS

We advise our clients to budget $65.00 per week, ($280 per month) per 10% share ($3,360 per annum) to have a horse trained at a Sydney or Melbourne Metropolitan Racetrack.

PRIZEMONEY

Payment is sent approximately 30 days after winning.

INFORMATION FLOW

Racing is both a sport and service industry. As an owner in our team you are constantly updated by e-mail, fax or telephone as to the progress of your horse. Our team employs a full time staff member who's 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, etc.

LET'S FACE IT !

YOU own the horse and pay the accounts, therefore YOU need to KNOW what's happening with YOUR horse. Every owner is equally important in our team's success.

INSPECTION OF YOUR HORSE

As an owner you are always welcome to visit your stable with your family and friends to view your horse. A simple telephone call to arrange a suitable time would always be appreciated.