Two years ago, the Standardbred Breeders of Ontario Association (SBOA) initiated its New Owners program designed to encourage individuals with an interest in harness racing to take the direct step into ownership of a race horse. SBOA found that many people had a curiosity and potential interest in exploring ownership of a race horse, but didn’t understand how to really go about it and the specific steps involved.

While such events as New Owners’ Seminars are helpful, of necessity they can be somewhat generic. The SBOA program is a step by step mentored or coached program that takes the guess work out of the process. The new owners are partnered with an experienced owner or mentor and have a top rated experienced trainer providing leadership in the selection of a horse and handling the horse’s training, from day one. In addition the SBOA provides each group with a “forgivable” loan of $15,000.00.

Initially in 2005 two groups were matched up with trainers and mentors. Both of these initial groups remain very active, their yearling horse purchases are commencing their three year old racing campaigns and have each achieved some racing success. More importantly, virtually every new owner in both groups has found the experiences gained both informative and enjoyable.

Building on the success of the 2005 Program, the SBOA repeated and expanded the program in 2006 to include three new ownership groups. All three groups have spent this past winter watching their yearling purchases of last fall mature and train down in preparation for their two year old racing, this year. At this point, all three groups eagerly await the start of the new racing season and (with fingers remaining crossed) it appears all three groups will have a horse at the races this year. .

In a continuing effort to achieve measurable and specific results, for 2007 the SBOA will again provide an opportunity for approximately twenty-seven new owners to participate in three groups acquiring yearlings at the 2007 yearling sales, this fall. Each group will include an experienced partner or Mentor to act as the group leader. To encourage participation, the initial investment of each partner is a modest $4,500.00.

PARTNERSHIP STRUCTURE:

A limited partnership will be formed for each group and funded as follows:

a) There will be 10 “A” partners comprised of the Mentor and 9 New Owners each investing $4,500.00, including the Mentor. One “B” partner, being the SBOA, will contribute $15,000.00 “forgivable loan" to the Partnership.
b) The Partnership will be assigned a pre screened Trainer by the SBOA.
c) The Partnership will acquire one yearling at the 2007 fall sales. The Yearling will be an Ontario Sires Stakes (OSS) eligible horse sold at public auction, in Ontario. The partners will set their final budget for the yearling purchase (generally in the range of $22 - $28,000.00). As a result, with initial funding of $60,000.00, the
Partnership should have funds for the training costs, staking etc. for the first year of ownership.
d) The SBOA has prepared a formal detailed Partnership Agreement to govern the affairs of each partnership which specifically includes provisions that only the “A” partners vote on the business affairs of the Partnership and a simple majority rules. Monies earned will go first to the “A” partners to recoup their initial investments and
then to the “B” partner (the SBOA) to repay the forgivable loan. As soon as the SBOA forgivable loan is repaid (after all “A” partners have recovered their initial investment), the SBOA relinquishes all ownership in the Partnership. Each partnership also provides that while the partners can decide by vote to sell their horse at any time, regardless, the horse must be sold at the end of the four-year-old season to ensure liquidity for the partners.
e) The Mentor will arrange regular meetings with the Trainer, provide the financial management of the Partnership and written progress reports to the partners.

MENTORS & TRAINERS:

Mentors and Trainers are carefully chosen, by the SBOA, and are individuals who support the need to encourage new ownership in the industry. Both the Mentor and Trainer will be open to communicate with new owners all the “ins and outs” of the business. All questions get answered and the Trainers and Mentors are people who enjoy the opportunity to impart knowledge and enthusiasm for harness horse ownership to the new owners.

With the initial success of the program in 2005 and 2006, the SBOA has been fortunate to attract some of the best training and mentoring talent in the business. For 2007, while we will finalize our Trainer and Mentor selections at the end of June or first week of July, we are confident that the high standards of the first two years will be maintained. A number of highly qualified trainers and mentors have expressed significant interest in participating with the new groups for 2007.

Each group will meet in late August or early September to formalize their partnership and plan their strategy for the fall sales. These meetings will also provide the
opportunity for the new owners to directly discuss and understand the whole process of selecting and purchasing a yearling with their Mentors and Trainers.

HOW TO PARTICIPATE:

If you are interested in pursuing participation in this Program, simply fill out and return the Application Form. You are not required to make your investment of $4,500.00 until your Group meets in late August or early September with your Trainer and Mentor and is ready to formalize its partnership. At that time, after you have had an opportunity to meet your Trainer and Mentor and had any questions or concerns you may have addressed, you can either proceed with your investment or you can decide to voluntarily withdraw from the Group, without any obligation.

If you have any questions, please contact:

For an Application Form click here to download the PDF.