Frequently Asked Questions
1. How do I access up to date information on my horse?
2. Does Clanbrooke insure my horse and what does equine insurance cover?
3. Does this apply to a lease also?
4. Do horses often return their purchase price?
5. Who decides what races the horse should be nominated for?
6. Can monthly fees increase?
7. Can I be liable for any extra charges pertaining to the horse i.e. vet bills?
8. Are monthly fees payable when the horse is spelling?
9. What happens to monthly fees if the horse is injured for an extended period?
10. Why am I invoiced quarterly?
11. Must I pay quarterly?
12. If I pay by Credit Card or Direct Debit, do I still receive an invoice?
13. What is the duration of the Syndicate?
14. Does this apply to a lease?
15. What if I decide I no longer wish to remain in the Syndicate? Can I sell my share?
16. Who decides when to retire a horse?
17. What happens to the horse?
18. Do Members meet the Trainer? Other Members of the Syndicate?
How do I access up to date information on my horse?
Clanbrooke Racing’s main communication vehicle is the Telephone Hotline. Members are given the phone number and access code when they join the Syndicate/Partnership and can then avail themselves of the most up to date information on their horse.
Clanbrooke also has a website at www.clanbrooke.com. Members are provided with a User I.D. and password when they join the Syndicate/Partnership. Updates are posted weekly or on a needs basis. When a horse is spelling, updates may not occur weekly.
Weekly training updates are provided via email to all members who provide us with their email address only when we are experiencing problems with this website. Email updates are also used to relay urgent information to Members.
Does Clanbrooke insure my horse and what does equine insurance cover?
In an effort to reduce the overall risk to Syndicate members, our horses are insured (Leased horses excepted) from the moment of purchase for a period of twelve months, with a reputable Equine Insurance Company.
At the end of the twelve month period, Members may elect to either;
-continue to insure their share with Clanbrooke's existing insurance company, or
-choose an independant insurance company, or
-elect not to continue insuring their share.
Members should be aware, however, that horses may only be insured against death or destruction.
Does this apply to a lease also?
As Members do not actually purchase leased shares, insurance does not apply to Leased Syndicates (as past and future earnings are not insured). Instead, it is the owners’ responsibility to insure the horse.
Do horses often return their purchase price?
We often advise prospective Members not to become involved in Syndication or horse ownership if they expect to make a profit. Many horses fail to win a race and some even fail to make it to the races.
On the other hand, in our experience it has not been necessary to outlay a large sum of money to race a successful racehorse. Horses that have been purchased for relatively small sums have won prize money that far exceeds their purchase price.
For example, Close Encounter, a horse Syndicated for $15,000 (purchased for only $6K) amassed over $145K in his career, was a Group winner and placed fourth in the 2004 SAJC Derby (racing with a fractured leg!); Emission, a horse purchased for $22,000, amassed over half a million dollars in winnings throughout his career and Ask the Music, a Leased Horse, accrued almost $50K prizemoney in her first two preparations.
Who decides what races the horse should be nominated for?
Nominations for all Syndicate and Partnership horses are ultimately made by the Trainer and Manager. The Manager may, in some cases, ask for Members opinions before making a final decision. Members are consulted if the horse is to be nominated for a race that demands a large acceptance fee, or a race that involves greater than normal travel expenses, as Members may be billed for such fee in addition to their monthly fee.
Can monthly fees increase?
From time to time it is necessary to increase monthly fees. Increases in daily training rates are passed on to Members when Clanbrooke can no longer absorb such increases. In this situation, Members are sent a letter from the trainer outlining the reasons for the increase. The most common reason given for price increases over the past eighteen months however has been the increase in feed prices, a result of the nationwide drought. There may, however, be other reasons, such as inflation, that necessitate a training fee increase.
Can I be liable for any extra charges pertaining to the horse i.e. vet bills?
Although vet bills, freight and all other incidental charges pertaining to the week to week training and caring for your horse are incorporated into the monthly fee, there are a couple of scenarios where Members may be liable for extra charges.
There have been three situations in Clanbrooke’s Syndication history where Members have been sent bills in addition to their monthly fee. One involved an unexpected operation which the Syndicate majority agreed to have performed as the horse had already had considerable track success, another a large freight charge, and the third a substantial acceptance fee. In all circumstances, Members were consulted before any action was taken and a decision was only made once a seventy five per cent consensus had been achieved.
Are monthly fees payable when the horse is spelling?
Clanbrooke’s monthly fees are calculated on a per annum basis. This means that all vet, freight, training, agistment and other incidental charges are costed for the period of twelve months and then divided by the twelve months. As such, monthly fees are payable while a horse is spelling. The benefit to the Member is the knowledge that costs will remain fixed throughout the course of the year.
In some cases, fees are fixed for six months only and adjusted according to actual costs for that six months. In this case, Members still have the benefit of being able to budget on a six month basis for a consistent fee.
What happens to monthly fees if the horse is injured for an extended period?
On occasion, horses are sent, on both vet and trainers advice, to the paddock for an extended period of time. In such a situation, Members have been consulted and a decision has been made, based on seventy five per cent consensus that the Syndicate should continue despite this setback. If this occurs, monthly fees may be amended for the period that the horse is in the paddock, but the decision to do so remains entirely at the Manager’s discretion.
Why am I invoiced quarterly?
The decision to invoice quarterly is purely a time saving mechanism. As most monthly fees do not change from month to month, we felt it unnecessary to send monthly invoices. Members are fully aware of the monthly fee payable when they join the Syndicate and this amount can be amended only in writing.
Must I pay quarterly?
Although we invoice quarterly, Members are not required to pay quarterly. Training fees are payable one month in advance.
If I pay by Credit Card or Direct Debit, do I still receive an invoice?
Yes, we send all Members a quarterly invoice.
What is the duration of the Syndicate?
The duration of a Syndicate is essentially open-ended. A decision to retire or sell the horse is made once Members have been consulted, the options clearly outlined, and a seventy-five per cent consensus amongst Members has been reached. Proceeds of any sale are distributed to Members once all Syndicate expenses have been paid and all Members have paid any outstanding monthly fees. Members’ two month bonds are also refunded at this time.
On occasion, although a decision has been made to retire a horse, it may be decided to retain the horse for breeding purposes, keeping the Syndicate or Partnership intact. In such a situation, new monthly fees will be calculated and Members advised accordingly.
Does this apply to a lease?
The standard duration of a lease is three years. In some situations, extensions can be negotiated with the owner.
What if I decide I no longer wish to remain in the Syndicate? Can I sell my share?
Where shares are owned (not leased) by the Member, that Member has the right to sell his share to any prospective purchaser for whatever consideration the two parties agree upon. However, any purchaser must be approved by Clanbrooke Racing and the new owner must abide by all existing Terms and Conditions.
If a Member chooses not to leave the Syndicate until they have sold their share, that Member remains liable for monthly fees and the agreed upon Terms and Conditions until they advise a Clanbrooke representative that their share has been sold to a person who has now accepted Clanbrooke’s Terms and Conditions.
Who decides when to retire a horse?
Often, the Manager will put a retirement option to Members along with a number of other options (including retaining the current racing status of the horse) and Members are asked to respond. The decision to retire a horse is made when seventy five per cent of Members agree to this. Often, although it becomes clear that a horse is not of city class, an alternate trainer may be proposed to the Syndicate so that the Syndicate may be retained. The decision to change trainers again rests with the majority.
What happens to the horse?
Horses are sometimes sold to Members of the Syndicate or even the current trainer of the horse. Sometimes we send horses to an appropriate William Inglis Sale, although the substantial fees required to do so may often be prohibitive and Members may be advised that this is not the best option. Ultimately, the Syndicate will accept the highest monetary offer.
Do Members meet the Trainer? Other Members of the Syndicate?
Clanbrooke encourages Member involvement in Syndicates and Partnerships and attempts to organize stable visits for all Syndicate and Partnership horses on a regular basis. Members are advised of these visits in advance and encouraged to attend to meet both the trainer and other Syndicate/Partnership Members.