Racing syndicates have transformed racecourse circuits in the US and Australia. Now they are bringing the same democratising change to racing in the UK. Syndicates facilitate fractional ownership of horses, which allows ordinary individuals to be part-owners of runners for an investment of hundreds of pounds – instead of hundreds of thousands. The practice is booming. Already nearly half of UK racehorse ownership is syndicated.

A horse named Syndicated could be considered the poster-colt for this expanding type of racehorse ownership. He’s a two-year-old sired by the famous stallion Dubawi, now in training with Classic-winning trainer Andrew Balding. In his three runs so far, Syndicated has a win and a show, to the delight of his thousands of owners. He was bought as a yearling by myracehorse, a leading ownership-syndication firm, for £450,000. True to his name, his ownership was then divided. As a result, anyone with £204 to spare can now buy a share in him, and become a co-owner of this promising colt.

Jules Pittam, Managing Partner at myracehorse Europe, acknowledges that racing is an “expensive” sport. “Syndicates offer a way for people to come together and share the experience,” he says. “Racing is in this nation’s blood, and syndication is one way to keep our lifeblood running.”

Syndicates are nothing new, but until recently they had tended to be small. The classic syndicate would comprise only about half a dozen owners, typically a group of friends or investors. But that has changed dramatically. Today in the UK about 20 syndicates have emerged which are sufficiently large to be operated, managed, and marketed as a business. They bring together unrelated people, often in their thousands, to share in the ownership of individual horses, and to divide the considerable cost of buying, training, and running winners.

Winners’ circle

And they have winners! UK syndication companies such as Middleham Park Racing, Highclere, and myracehorse enjoy an enviable track record. One of the earliest Classic wins was in 2000, when Petrushka won the Irish Oaks for Highclere. Motivator won the Epsom Derby in 2005 for the 200-member Royal Ascot Racing Club syndicate, and this year Highclere’s Cachet won the QIPCO 1000 Guineas at Newmarket. In the National Hunt, the One for Luck syndicate’s Put The Kettle On won the 2020 Arkle Novice Chase at Cheltenham, then the 2021 Champion Chase. Such wins only help to attract more individuals to fractional ownership.

Part of their success is down to the syndicates’ ability to engage the very best trainers, a group that naturally supports the influx of new investment into the sport of racing. Newmarket-based trainer Charlie Fellowes, who’s had 15 big race wins since 2018, says that in Britain syndicates are “crucial to the long-term health” of horseracing. “They are a gateway into a sport that can seem financially out of reach, and a brilliant way for people to dip their toe into the water of owning a racehorse.” Fellowes, who has trained for multiple syndicates over the course of his career, says “they all do a wonderful job of making ownership great, affordable fun.”

The price of ownership through a larger commercial syndicate varies based on multiple factors. For example, a 0.025% share of Syndicated includes £124.48 for the value of the horse himself (which is adjusted based on performance); £32.64 as a ‘general reserve’ to cover ongoing expenses ranging from training to insurance; £27.35 for a ‘diligence and management’ fee (essentially, the syndicate management costs); and £19.53 for the ‘organisational and experiential’ fees which cover administration, marketing, and ownership benefits. Any winnings are shared proportionally between the owners.

The value of expanding the ownership base through syndication is widely acknowledged, and syndicates and others in the racing industry have worked hard to account for the multiplying number of owners. “Racecourses have come a long way, and have gone to great lengths to accommodate larger syndicates, which means more people can share in the experience,” says Pittam of myracehorse Europe. “The digital revolution has massively helped.”

Supporting services

Several services have emerged to support syndicated ownership, in some cases through technology. Andy Ash founded The Racing Manager (TRM) in 2018. The platform hosts about 15% of horses in training, and more than 225 ownership groups. Anna Rowlinson, Head of Operations & Sales at TRM, says: “In 2021 TRM sent 238,226 updates direct to our users via our app or website. They comprised training updates, race entries, racecards, replays, race previews and reviews, form alerts, breeding and auction updates.” It all helps to create a deeper engagement for owners by bringing them closer to the action.

Insurance broker Miller is another firm that has focussed its attention on the burgeoning syndicated ownership market. “The syndicate model brings like-minded people together to invest in horses, but it creates new insurance challenges,” says Archie Horne, Head of Bloodstock & Livestock insurances at Miller. “The world of equine insurances has in the past been very relationship-oriented, so for a broker like me it was all about network. That’s changed with the rise of mass syndication, where a managing entity sits between the owners and the insurers. We’re working closely with specialist syndication companies to ensure the cover for every horse – and therefore for every owner – is appropriate, economic, and responsive.”

Syndication is clearly set to remain a part of racing, since it brings all the joys (and frustrations) of ownership to so many more people. From the yearling exhibitions held by major syndicate managers to significant auctions like the upcoming October Yearling sale at Tattersalls Newmarket, the industry is giving fractional owners plenty of opportunity to participate in person in ownership activities. They can visit trainers to see their animal in action, and enjoy the unparalleled buzz of hearing crowds at the fence talking about their runner. With syndication, everyone can be a part of the sport of kings.