What is The Club?
The Club LLC is a company designed to allow individuals the opportunity to enjoy the thrill of Thoroughbred ownership by purchasing shares in quality racing prospects as well as offering the opportunity to buy in “pinhooks” or horses meant for resale.
Who selects the horses?
We have an excellent team, with proven success in the selection of top-quality racehorses. Bob Feld, who has been instrumental in the purchase of four Breeders’ Cup winners; Sean Feld, who has advised the purchase of Breeders’ Cup Mile (G1) winner Court Vision and well as two time Eclipse Award Champion, Beholder.
How much does a horse cost?
Of course, prices vary, but The Club will play in all ends of the market. Our pinhook horses have varied anywhere from $7,000 to $50,000 and everywhere in between. Our racehorses have varied from $20,000 to hundreds of thousands of dollars.
What are the monthly expenses?
A Thoroughbred racehorse costs about $40,000 a year to keep in training at major tracks in the United States and Canada. The related expenses are the same at all levels but top quality Thoroughbreds run for much higher purse money. Respites at the farm cost considerably less, roughly $1000 a month. Weanling to yearling pinhook horses have much lower costs.
What are the risks involved in Thoroughbred ownership?
Equine athletes, like their human counterparts are susceptible to injury. Some of the risk can be alleviated through proper management but it is never eliminated.
Should I buy a large piece of one horse or smaller pieces of several horses?
Just like the stock market, the risk of Thoroughbred ownership is lessened with diversification. We recommend purchasing smaller shares of more horses than a large share of a single Thoroughbred.
What are the benefits of Thoroughbred ownership?
Free admission and seating on race days are just the beginning. The pride of ownership begins with your first visit to the barn and swells to an incredible crescendo when your horse storms home to victory. There is really nothing comparable in all of sports.
Are there any tax advantages to owning a racehorse?
Yes. Recent tax law changes have made Thoroughbred ownership more attractive than ever. We recommend that you discuss the benefits with your tax adviser.
Are the horses insured?
The Club does not provide insurance for your racehorse but each individual investor can insure their share. Contact our home office if you need assistance with insurance. The Club does require that you do insure the pinhook horses, therefore it is automatically billed to the partners.
How are purses distributed?
The Club partnerships are set up with monthly statements. Purses earned are posted to the appropriate horse and will be reflected in the itemized statement for the quarter in which they were earned. Distributions will occur at that time.
Does The Club charge a monthly management fee?
Yes. There will be a nominal fee for administrative purposes, which covers the accountant fees as well as paper and stamps. The Club earns five percent from purses won to cover their administrative costs, underlining The Club’s goal of earning purse money. The pinhooking fees are included in the investment costs.
I have other questions, who do I contact?
Never hesitate to give anyone of us a call or to send us an email. There is no such thing as a bad question.