When you purchase a share in a horse, you become an equity holder in that horse. Each horse is divided into a specified number of shares, and you can buy anywhere from one to 50 shares per horse. The names of all shareholders are recorded with Weatherbys and the British Horseracing Authority (BHA).
Our share terms generally last for 12 months, and all shares have a fixed expiration date. For example, if you purchase a share two months into the term, it will expire on the fixed 12-month end date.
The total cost of each horse includes the cost of acquiring the horse, vetting expenses, transportation fees, a 5% capital risk charge, all racing costs, a service fee for managing and marketing the syndicate, and a post-racing contribution to support the retirement of horses.
The cost of acquiring the horse encompasses the purchase price and any commissions, while vetting expenses cover the pre-acquisition veterinary examination. Transportation expenses are required to move the horse from the point of purchase to its destination. The horse’s capital value may be adjusted if it has increased. For example, in the case of a yearling that has undergone significant training since purchase.
A 5% non-refundable capital risk charge is applied to the purchase price to account for the financial risk that Grid Iron Racing bears. The company may need to cease selling shares if the horse is unfit to continue racing, leading to a loss for the company.
The all-inclusive racing cost includes training fees, entry/declaration fees, veterinary expenses, and other expenses associated with horse racing. Typically, this amount is around £30,000 per syndicate per year.
A service fee is also applied to cover the management and marketing of the syndicate, which includes providing owners with content such as videos, audio updates, and images.
Grid Iron Racing also makes a post-racing contribution of £500 per syndicate per year to aid in the rehoming of retired horses, which is donated to the Retraining of Racehorses (RoR) organisation if unused.
All net prize money earned during the Grid Iron Racing syndicate term will be distributed annually per syndicate, unless a horse wins £100,000 or more. In such cases, Grid Iron Racing may distribute the funds earlier.
Each shareholder will receive a proportional share of the net prize money paid to Grid Iron Racing by Weatherbys, which administers horse racing under contract from the British Horseracing Authority. Net prize money includes appearance fees, sponsorships, and bonuses, but winning prize money is not guaranteed.
At the end of the syndicate term, a proportional share of any prize money won will be added to the shareholder’s Grid Iron Racing account for withdrawal or use to join another syndicate or purchase shares in another horse. Any unclaimed prize money after two years will be donated to Racing Welfare or the Retraining of Racehorses.
We encourage shareholders to attend races and support their horse. Racecourses offer a set number of owner badges for each horse, which provide free entry, access to the paddock and winner’s enclosure, and usage of the owner and trainer facilities. Badges will be distributed through a voting system, with each shareholder receiving one vote per share owned.
Additional discounts on entry tickets may also be secured for shareholders whenever possible. Only individuals with a valid owner badge will be granted access to the paddock and winner’s enclosure for safety reasons. Shareholders without a badge can meet with the trainer, jockey, and the Grid Iron Racing management team at a designated meeting point.