The Experiential fee covers the Management of the Membership Experience Program, which includes, but is not limited to content development, management of race day ownership perks, and access to the MyRacehorse Platform™. ![]() Organizational & Experiential - Organizational expenses that are covered include key essential services including legal, compliance, marketing, and establishment of the financial and corporate framework in connection with an Offering of a Series of Interests. No additional management fees will be incurred unless the management performance bonus or sales commission is earned. The Management fee is for the active management of the series by working with the stakeholders including trainers, vets, bloodstock agents, track reps, finance, legal, insurance brokers and compliance advisors to maximize the performance of the series. Management and Due Diligence - Due Diligence covers the expenses for the discovery of the underlying asset and the establishment of the series. These expenses generally include training and care costs, mortality insurance, veterinary, administrative, audit, taxes, transportation, race nomination/entry/starter costs and registration costs.īrokerage Fee - Each offering has been qualified by the Securities and Exchange Commission (SEC) and is offered through a registered broker-dealer, Dalmore Group, LLC a member of FINRA and SIPC. Operating Reserve Account - The portions of the proceeds that are used to fund the ongoing expenses of the series. There are five parts to an offering as fully described in the offering circular, for a summary of the five key components see below:Īsset Cost - Includes the initial purchase price of the horse plus any sales or use taxes, and the associated bloodstock fee. Since there is no breeding rights as a part of the lease, the return on investment will be based strictly on the horse’s performance on the racetrack for the lease period. In the case of MyRacehorse, the lower acquisition cost translates into a lower share price, which affords the investors a greater chance for a positive return on their investment. They do however get to campaign a top-quality horse, and reap the benefits of the purse money won throughout that campaign. The lease affords the lessee access to top quality racing stock at a fraction of the cost of the horse’s full value, since they do not share in the residual value at the conclusion of the horse’s career. An owner who acquires a horse in the midst of their racing career for the sake of breeding may look to enter into a lease to offset some of the cost of their initial investment, while giving the lessee a chance to run after significant purse money in stakes races. Leases are a good way to marry these two parties together. ![]() Other owners focus solely on racing operations and are in the market to sell their stock to breeders at the end of their horse’s racing career. ![]() Many owners are interested in breeding their stock, more than racing them. It is important to note that owners acquire horses for various reasons. Leased horses generally have proven success on the racetrack and established a significant residual value as either a broodmare or stallion prospect. The lease is a straight forward agreement between the lessor (owner) and the lessee (lease holder) that specifies a lease price, the duration of the lease, and the percentage of the horse that is leased. Leasing the racing rights of a horse has become increasing popular over the last 5 years and has been embraced by many of the industry’s biggest players.
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