Whether you're spending £5m on a racehorse – just like Qatari royalty did at Goffs London Sale earlier this year when snapping up Sparking Plenty in a bidding bonanza ahead of Royal Ascot – or buying into a syndicate at £60 a share, owning a racehorse can be a passionate, and potentially lucrative, adventure.
Buying a horse outright or buying into one immediately catapults you into the top level of the sport of horse racing at a fraction of the price that it would have cost Sir Jim Ratcliffe to buy a stake in Manchester United - a reported £1.25billion for a 27.7% stake - to get him at the top table in the Premier League.
Not everyone has millions to spend on a horse but a small investment can make an enormous difference. A 21-year-old student spent £3,000 to buy a stake in a horse named Corach Rambler, via a Goffs Point-to-Point Sale and that runner went on to land the biggest prize of all, the Grand National, in 2023, landing a cool £100,000 share of the prize money.
So, you don’t have to spend millions to compete at the top level. Of course, not everyone can have such luck as Corach Rambler’s syndicate but if you are thinking of investing into a racehorse, what should you be looking out for and, more importantly, what should you be avoiding? Below are our five dos and don’ts.
Dos
Do decide on your budget
It’s an auction and you can easily get carried away. Whether you’re buying a horse or if you’re buying an antique lamp, you need to decide how far you’re going to go. If you want a Royal Ascot runner, you’ll likely have to pay a high premium for it and even then, that doesn’t guarantee you a winner. If you want a horse for the social aspect of it that can pick up some prize money in the 3.40 at Kempton, then you won’t have to spend as much. Just remember if you are buying a 1% share in a horse, you will only get 1% of the returns.
Do your research
Before you even get to the auction, it is highly advisable to employ a professional advisor with experience of the sales environment to advise you on all matters. This might be a bloodstock agent and/or a racehorse trainer. The former will normally charge you a fee for their services whilst the latter will usually expect to train the horse you purchase – all of which will come out of your pocket.
Do decide what horse you’re looking for - a star runner or a consistent type?
Do you want a runner that is going to go and tear up multiple Grade 1 contests and bag you hundreds of thousands in prize money? Or, do you want to own a horse that will head around the country at a lower level and you can enjoy the social aspect of it with the potential of seeing a small return? Don’t forget about training fees as well, though if you’re in a syndicate that will likely come out of your monthly/yearly payments in any case.
Do inspect the horses
When you’ve decided on your budget and have done all of your research, then you’re ready to go. When a horse arrives at Goffs, be that at the auction house’s headquarters in Ireland, its UK base in Doncaster or at one of the company’s boutique auctions such as the London Sale, and is ready for showing, any potential purchaser can inspect the horse in which they are interested. This involves visual assessment of their conformation standing upright and their movement and athleticism when walked and trotted up and down by their handler. Inspections begin several days prior to each auction. Once complete, interested purchasers will generally compile their shortlists of the horses they would like and will ‘follow in’ to bid on.
Do be patient - the returns might not be immediate
Buying a horse doesn’t always guarantee an immediate return on your investment. The horse might not run for six months, could pick up an injury, or might be a slow burner.
Your £60 share in a horse will probably not give you the bigger returns but if you invest £10,000 or more, then the returns could be greater.
For example, the investors who purchased Pentle Bay at the Goffs London Sale prior to Royal Ascot were rewarded with a second place of 15 in the Chesham Stakes and a nice £23,000 return on their £400,000 investment. There’s still some way to go to recoup the outlay but it is certainly a start.
Don’ts
Don’t ignore the auctioneer
If you have decided to buy into a horse and have made your way to the sales, once in the ring, the auctioneer will announce any updates or alterations to the horse’s catalogue page, such as a sibling who has won since the catalogue was published (usually six weeks prior) or if there is an error on the page. They may also read out a veterinary certificate if the horse was subject to a pre-sale examination or indicating that horse has received any medication in the lead up to or during the sale, or if the horse has been seen to have any vices, such as box-walking, weaving or windsucking that are not disclosed in the catalogue.
It is crucial for potential purchasers to listen to these announcements for the horses they intend bidding on as they are legally binding and to ensure that they are fully aware of all relevant information that could affect their purchasing decisions.
Don’t forget to surround yourself with experts
It’s not worth turning up the sale with your pockets brimming with cash and throwing it down on a horse that won’t amount to much for you. If you or your advisor are interested in purchasing a horse at a sale, get in touch with the Goffs team in advance to complete an Account Facility Enquiry form. The more you know beforehand, the better your experience at the Sales will be.
Don’t forget the additional costs
You can lay down £50,000 to buy your horse at the sales but it is equally as important to not forget the additional costs that come with it. Some estimates say that it can cost up to £30,000 per year to keep the horse on track, be that through training fees, vet fees, race entries, farrier services, transportation costs and plenty more.
Add to that you will have jockey fees as well to ride your horse - it all starts to add up so while you might be spending a fair amount immediately on the horse - it will continue to cost you going down the road.
Don’t forget to choose the trainer carefully
The appeal of sending a horse to a trainer with the biggest trophy cabinet is obvious, but remember that plenty of winners come from the smaller stables.
Trainers aren’t just in the business of training racehorses, but working with people too, so align yourself with someone you build a personal connection to with a shared vision of what you want to get out of your ownership experience.
Your trainer and their team not only provide the vital care, training and stabling for your horse(s), but are vital parts of the experience as an owner, especially in terms of what can be controlled. A great relationship and successful execution of a shared plan with a trainer can make winning a much smaller race feel just as good as landing a Grade One.
Don’t forget to have fun
Owning a racehorse can be one of life’s greatest pleasures. The thrill of the race, the connection to the horse, the social aspect of going racing - it all adds up to what is an exciting thing to do.
Your horse may not be the most successful, it may not even win a race, but enjoying the experience and meeting like-minded and passionate people is what owning a thoroughbred is all about.
Henry Beeby, Goffs Chair and CEO, said: “There’s nothing like the thrill of racehorse ownership which is unique as anyone can compete at the highest level and it gets you closer to the action than any other sport. A horse should always be bought with disposable income as, while you could make money, you could also lose it. Although, either way, it will be great fun!”
For more information, see goffs.com
