Going to the races is a pretty fun way to spend a day. A few bets here, a few bets there, and at the end of the day, you’ll hopefully come away with ‘quids in,’ as the punters say. What could possibly make your day more enjoyable?

Well, if you felt that being a little more involved in the action would heighten the excitement, why not pick a horse from the Racing Post randomly and put the deeds from the family home on it? The main argument against this would be that it is, perhaps, not an entirely smart way to increase your enjoyment, although it would certainly spice things up. Somewhat more logical would be to have your own trusty steed running in the race itself

Well, owning a hacking pony is a costly enough experience. What with vets fees, shoes, stabling, feed and insurance, the cost soon mounts, but owning a racehorse is quite a different matter and, unless you have almost inexhaustible funds, not a decision to be taken lightly or after a session down the pub. A racehorse can be a costly adventure

But nothing can stop you. You’ve made up your mind, and you want the dream; you can already taste the winner’s champagne. In your mind, you see your horse romping home to victory at Cheltenham to the crowd’s roar, over and over again… and who knows? It just might. But how do you do it? Just how do you become the proud owner of your very own racehorse? Well, there are several ways that you can get in on the action

Sole Ownership

The preferred route of millionaires and royalty is sole ownership. To give you an idea of cost, you only have to look at the type of person who can afford to become the sole owner of a racehorse. The list includes The  King (albeit slightly reluctantly), Sir Alex Ferguson, Princess Anne, the Aga Khan, Wayne Rooney, Michael Owen, Steven Speilberg and Ronnie Wood. Of course, you can always wait for that lottery win, but if you are determined to own a racehorse now, there are a few other tracks worth exploring

The British Horse Racing Board says the average annual cost of owning a racehorse is just £16,500. But that’s an average, and of course, there are track fees, rider’s fees, transportation and fate and chance to consider. Costs will escalate if your horse catches a cold and runs up a large vet’s bill during the year or if you decide to be so confident that you splash out on an expensive trainer. Realistically, owning a racehorse is going to cost you between £1,500 and £1,800 a month minimum, and on the basis that your horse may only run once every other month, it would need to win pretty consistently just to pay for itself

Of course, your horse is a guaranteed winner, and if £20,000, or thereabouts, plus the cost of the horse itself, doesn’t sound too daunting, then owning a horse outright is the way for you. Ask any racehorse sole owner. It’s the only way to get the full experience of being a racehorse owner with all its up and downs, deep ocean bottoms and Everest highs. Along with the cash though, you’ll also need plenty of time and enthusiasm; sole ownership of a racehorse is almost a full-time occupation

If you take off the rose-tinted specs, you’ll see that the odds are just a little stacked against earning a million from owning a racehorse. Usually the most that you can expect are modest profits – if you are lucky. But of course its lots of fun and just think of how envious your friends will be… and what about those smart tweed suits and glamorous hats? But how will you afford it all? Well, if you can’t stretch to sole ownership there are lots of other options if you fancy your chances as an owner

Shared Ownership

There are many ways to share the excitement of owning a race horse and the expense! For as little as £50-100 a year, it’s possible to own a small interest in a racehorse. For a few thousands more you can take a stake in your own colt, filly, mare, stallion or donkey

So, if you aren’t a prince, a film star, or a Premier League footballer, the cheapest and most straightforward way to become a racehorse owner is to join a syndicate or racing club. There’s a world of difference between a syndicate and a racing club. Members of a syndicate are sharing the ownership of one or more horses. Members of a club are enjoying some of the benefits of being a racehorse owner, except, essentially, they do not have any ownership rights of the horse(s). There are many Clubs and Syndicates in the UK and most offer a number of different packages, each one at a varying cost. For example, for around £90 a year, Racing Shares offers you the chance to own a small share in a horse along with the occasional free ticket to the races, owner’s badge, invitations to your horse’s stables, and a monthly newsletter updating you on how your horse is doing and upcoming meetings – all that excitement for a little over a pound a week. Of course, unless your horse turns out to be Frankel, your share of the prize money isn’t going to make you rich; and with the cheapest of these particular packages, any prize money is donated to horse welfare charities anyway.

A small share in a horse makes a nice gift, so perhaps you should start dropping hints to your nearest and dearest. They provide a low-cost, fun introduction to racehorse ownership. But it’s a little like pretending you have a Ferrari when all you actually have is a Ferrari key ring. For those with just a little bit more to spend a 2.5% stake in a horse (almost a whole ear!) can be purchased. Generally, the larger the stake that you buy, the more benefits you will get with your package and the bigger share of any prize money you will receive. On the other side of the coin of course, the financial risks attached also go up with the more horse you purchase, unless you’ve joined a Syndicate which operates at a fixed monthly cost. There are even some clubs, such as the Elite Racing Club, that will give you the chance to follow 20 horses for a fixed fee of around £170 a year… as cheap as chaps. Members receive a share of the prizemoney earned by the club’s horses. Additionally they receive a weekly newsletter, plus options to visit both the stables as well as courses where the club’s horses are racing, with opportunities for members to gain both paddock and winner enclosure entry

The advantage of racing clubs and syndicates is that they take away the hassle and all of the worry out of ownership. It’s a shared thing – all the training, organisation and maintenance that your horse needs is looked after by the syndicate, leaving you to enjoy the finer side of being an owner – like a glass or two of bubbly. Of course, the downside of syndicates is that (even if your horse is lucky enough to win) you’re unlikely to receive very much prize money once it’s been divided between the other owners. But even though you won’t make any real cash and may not even break even, it can be a lot of fun

Many trainers now offer shared ownership, including Jonjo O’Neill, Venetia Williams and Gary Moore

Racing Clubs

Racing Clubs are not an independent form of co-ownership. Therefore by joining or becoming a member of a Racing Club you receive the benefits of that Club but are not entering into racehorse ownership yourself. It’s important to check each Racing Club’s terms and conditions, as each club will operate slightly differently. However, normally you’re assured an ‘interest’ in a horse or horses at a fixed yearly/monthly cost for a fix period of time. Racing Clubs can be a good first stepping stone into the world of racing

Syndicates

A syndicate is a loose term often used in racing to describe a group of people who own a horse together, regardless of whether it has been formally registered as a joint ownership or a racing partnership. If a syndicate is set-up as in the joint ownership model then all members will be registered as owners, racing partnerships require only two members to be registered as owners. The maximum number of syndicate members for joint ownership is 12 and for Racing Partnerships 20

There are a number of professional syndicate organisers who work on a commercial basis and charge a management fee to set up and run syndicates. They will usually take care of all the daily admin, horse training and race entry fees, providing members with ‘hassle free’ ownership. The costs involved in being part of a syndicate will depend on a number of factors; value of the horse, training fees, vet bills etc. Many professional syndicate organisers will also offer a fixed monthly cost to members, ensuring that you don’t get any nasty bills!

Company Ownership

Company ownership is another way of becoming a racehorse owner. Mind you, you need to own a company first. Companies usually buy a racehorse for prestige and advertising purposes. In most cases the horse is owned by the company’s shareholders and the company must appoint a Registered Agent to act on its behalf. There are a number of benefits to corporate ownership including being able to name a horse after the company or brand, and of course jockeys can wear corporate colour silks. As with football and Formula One it gives excellent exposure to a wider audience, has great client entertainment opportunities, employees and their families can become involved, and of course VAT and training fees are all reclaimable – so it’s one in the eye for the tax man

Leasing

Another way to get involved in the game is leasing. You ‘own’ the horse for a set period of time, perhaps for one race, one year or for its complete racing career. But the horse is never actually yours, so you can’t sell it. Of course the costs that the horse incurs are the responsibility of the lessee for the lease period and the horse will run under the ownership of the lease holder. It’s important that everything is put down on paper and that a written agreement is made regarding the lease period and of course any prize money split. At the end of the lease the ownership of the horse returns to the legal owner leaving you free to move on to your next victory! See here for more information

Owning a racehorse is an exciting proposition. If you’re in it for the excitement and fun then you’re on to a winner. If you want it to make you rich, then you may need more than a little luck. Either way, there’s some form of ownership out there to suit most racing fans regardless of the depths of their pockets. Whichever type of ownership you decide is right and affordable for you, there’s something thrilling about owning a racehorse. It’s cheaper than buying a football team, and who doesn’t like wearing big hats and drinking champagne at the races? Good luck!