A couple of recent occasions have spurred my desire for transparency. First, there’s the ongoing saga of Donald Trump’s business dealings throughout the world and his not so clear, or real, charitable attempts. And there is an online exchange with Terry Finley then, the supervisor of the West Point Thoroughbreds relationship operation. As I pointed out about three years back, partnerships are a huge deal in the race. 500 for those signing up for a second collaboration. Whatever the level or size of the collaboration, a potential partner should be able to take a look at its financial reports and get a feeling of what her money is going for.
So just how do the promoters make money? There are just a few proven and oft-repeated methods (leaving apart for the moment the strategy of simply stealing the companions’ money, as used by the late notoriously, unlamented Karakorum Racing Stable). First, a collaboration can mark up the price of a horse it has purchased. 25,000 per 10% share). Certainly, there’s risk and expense involved with making the purchase.
Alternatively, a partnership may take a percentage of each partner’s initial capital contribution in lieu of or in addition to marking up the price of the equine. Second, a relationship can take a share of the horse’s revenue off the very best, before distribution to the partners, or it can preserve a share of the equine, without the responsibility to pay that percentage of the horse’s expenditures. These amount to the same thing. Next, management can be charged with a partnership charge, in addition to or instead of a percentage of purse earnings. The management charge might, or might not, have any relation to actual overhead costs.
535 per relationship monthly, and reflects real costs like office rent, preparing annual taxation statements for each partner, etc., but does not include any compensation for the management team. Other partnerships in a different way to take action; the important thing for would-be partners is that they know whether a charge is charged, what it’s for, and how much it is.
- 3/5/2019: Favorable Report Adopted. Second Reading Passed
- Are there competing franchises that may open up close by
- How various kinds of Actions
- 2016 median annual salary: $121,750*
- Trading history
Similarly, some partnerships, including ours, charge for extra out-of-pocket expenditures that are outside the range of what’s included in the standard management fee. At Castle Village Farm, we call that “partner liaison” expenditure, each month and it is whatever it is and is disclosed fully. Finally, a percentage can be taken with a partnership, either of the gross or of the profit, whenever a horse is sold. In my opinion, the better practice is to take a percentage only of the income, if any, on the sale. Most times there won’t be any, but that’s the nature of the overall game. Now, for transparency. At a minimum, prospective partners should know how much they’re on the hook for, and in what categories.
As a good example of what I believe is adequate transparency and disclosure, here is an overview of what Castle Village Farm provides its companions and makes available to anyone requesting about the probability of joining us. Second, each right time a horse operates, we send companions a purse declaration. To take an example, october 17th this year on, our mare Lemme Rock gained an optional claimer at Finger Lakes.
