Road to Ownership

 

When an individual decides to invest in Sackatoga Stable they become part of an LLC formed to purchase a horse(s).

Typically, Sackatoga Stable LLCs will be capitalized in the range of $150,000 to $200,000. Our experience has taught us that at these levels it is possible to acquire high quality horses that provide our investors with an enjoyable racing experience and the potential for achieving financial success.

When attending a sale to purchase a horse(s) for syndication, Sackatoga Stable’s team begins its due diligence to determine the best horses available in an affordable price range. Preceding the sales, horses are evaluated utilizing all of our resources and experience. Potential purchases are rated based on a variety of criteria including blood lines, conformation and veterinarian examinations. Once a horse is determined to meet Sackatoga Stable´s criteria, a maximum purchase price is set for each horse under consideration.

Currently, the minimum initial investment for any Sackatoga Syndicate is $5,000 or $10,000, depending on the cost of the horse(s) purchased.

Why Sackatoga Stable?

At Sackatoga Stable we are dedicated to providing a wonderful thoroughbred experience for our clients.  Our emphasis on excellence in all aspects of customer service that will ensure you accessibility and involvement with your investment. We are open to your comments and conduct all our operations with the utmost integrity and honesty.

One of our greatest assets is our current investors. We are happy to provide you with references should you care to talk with someone that has already been through the investment process. We thank you for considering Sackatoga Stable and will be happy to assist you at any time as you consider making a thoroughbred investment. 

Financial Details

An investment in a thoroughbred racehorse is a volatile investment and is not for the conservative investor or faint of heart. The value of a thoroughbred fluctuates throughout its racing career. The animal’s value is determined by its perceived potential for success and later by performance in races and expected performance in future races. The most important variable to consider when evaluating a racehorse’s career and future performance is the animal’s ability to withstand the training regime and remain healthy. 

At Sackatoga Stable, our investment strategy is to build into each principal’s share calculation the cost of the first year’s expenses. Our goal is to ensure that as the horse begins its racing career at age two, its purse earning will at a minimum cover the horses annual operating expenses. These estimates for monthly operating expense are outlined below:

Training Fees $3,000
Blacksmith and Veterinary $800
Insurance $500
Transportation (NY, FL and Saratoga) $500
Stall Rent (Palm Meadows Training Center - 4 months) $200
Admin / Mgmt. including office expenses, taxes, tax prep. and web site maintenance $1,000
TOTAL MONTHLY EXPENSE PER HORSE $6,000
TOTAL ANNUAL BASE EXPENSE* $72,000

* Assumes horse is in training 12 months. Many horses will spend 2-3 months at training centers which will reduce costs by $6,000 to $8,000 per year.

Benefits

As syndicate investors, our clients receive full thoroughbred ownership privileges throughout the country.  Our management team assists all new investors with the required paperwork necessary to be licensed as an owner. Ownership privileges include, but are not limited to, access to paddock and backstretch areas at thoroughbred tracks where our horses race, parking access in owners´ lots and free admission to racetracks throughout the country.

Frequently Asked Questions

Sackatoga Stable...Who are we?

Sackatoga Stable LLC is dedicated to providing affordable thoroughbred ownership to its investors while also fostering a true appreciation of the sport and an enjoyable experience. At Sackatoga Stable we provide management services to our thoroughbred racehorse investment partners as an additional benefit…because the more our investors know about our business , the better for our partnership.

How are partnerships formed?

Sackatoga Stable LLC partnerships are formed for horses purchased at major thoroughbred yearling sales, two year old in training sales and through private purchase. Barclay Tagg serves as our representative, selecting horses for purchase, as well as serving as trainer of all Sackatoga Stable LLC horses. Following purchase of yearlings, Sackatoga Stable LLC horses are shipped to New Episode Training Center in Ocala, Florida where, under the leadership of owner Tony Everard, they are prepared for their racing careers.

How are horses selected?

Sackatoga Stable LLC focuses on the purchase of well bred New York Breds which we believe have the potential to compete in stakes races restricted to New York Bred horses. In the price range where we typically purchase horses ($50,000 to $150,000), we believe that the highest potential success for our investors is to purchase and race New York Breds.

What is the investment opportunity?

Prior to major thoroughbred yearling and two-year old in training sales, Sackatoga Stable assesses the interest of potential investors in purchasing a share(s) in an LLC formed following the purchase of one or more horses at the sale. Sackatoga Stable uses this information to guide its expenditures at the sale. Following a sale in which one or more horses are purchased, the capitalization level and number of shares are established. Shares are available for a minimum investment of $5,000 or $10,000 depending on the price of the horse(s) purchased. An investor may purchase multiple shares. 

Investment in a thoroughbred racehorse is not for the faint of heart. The value of a thoroughbred racehorse is based upon its performance in races and its expected ability to perform in future races. The single most important factor in a racehorse’s career, if it proves to be talented, is the animal’s ability to withstand the training regime and remain healthy throughout its racing career. Therefore a horse´s “investment value” can fluctuate greatly. 

At Sackatoga Stable LLC we have created a model designed to initially protect our investors from the high annual costs associated with training a thoroughbred racehorse. The initial capital contribution covers the purchase price of the horse (or horses) purchased as well as all expenses through the third quarter of the horse’s two-year-old year. This is designed to coincide with the time that the horse would normally begin to race and earn purse money. It is our goal to acquire horses that will begin to cover their expenses through purse earnings by the second half of their two-year-old year. In the event that a horse does not completely cover expenses, expense allocations are billed periodically based on an investor’s pro-rata share of ownership.