French newspaper giving an insight into racing syndicates

French newspaper giving an insight into racing syndicates

18 May 2014

Questionned by French newspaper Journal du Dimanche, the director of ARQANA Olivier Delloye answer to the following questions : Do race horses are good investment ? Is it safe to invest and how can it be done successfully ? Are there any fiscal incentives ?

Extract of the article "Buying a horse in shared ownership"

Is a racehorse a good investment?
It's a hobby investment, just as sailing is or collecting classic cars, and should be sold as such. One knows that the hope of covering the initial investment or to better it is very unpredictable. Though there are some great stories such as the filly Trève last year - She was offered up for sale at auction for €25,000 and did not find a buyer at that price. Her breeder went home with her and last year she won €4.1 million in prize money, most notably when winning the Prix de Diane and the Prix de l'Arc de Triomphe!  

What is the safest way of investing?
Last year we launched a concept involving buying a racing syndicate of five horses in shared ownership.  It is split into 30 shares each worth €20,000. These horses are aged 18 months, therefore yearlings and will start to run at two years, finishing their career at the end of their third year. The co-owners are invited to the auction offering the horses which will make up the syndicate for sale, the can go along to watch the horses in training, do stud visits, meet breeders and are invited to the major race meetings. On 16 May we will launch a second syndicate following the same principle. A similar initiative was also launched by RMC last year. This is a race club offering membership from €50 and directed at anything from two to several thousand members.

Are there any tax incentives?

None! Syndicate ownership mainly aims to encourage a love of racing in a bid to breathe new life into the thoroughbred industry. It is the best way of creating new owners and to initiate them in the hope they will catch the bug. We consider the return on investment compared to running costs to be 50%.  But one can hope to do far better than that.

An article that can be read in French here

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