At Hancox Bloodstock we would like you to consider several points before purchasing a share in a racehorse from any bloodstock company, including our own.
If you are not aware of these facts, you may spend far more money than is necessary on a potential winner, or worse still, you may face the very real risk of losing your entire investment, should your horse injure itself and not race as a result.
Is it true that you must have an expensive horse to win big prizemoney?
One commonly held misconception, is the belief that the more you pay for a horse the faster it will be able to run, and the more successful it may be on the racetrack. The facts indicate that is rubbish; the price paid for a horse, or a share in a horse, does not relate to that horse's ability to win races. This point is endorsed by horses such as Better Loosen Up - Stylish Century - Kiwi - Rancher - Manikato - Placid Ark - Bonecrusher - Special - Kingston Town - Tidal Light - Vo Rogue - Bullwinkle, Poetic King, Tierce, Sovereign Red - Dark Ksar - Ever Ready - Handy Proverb and Ravarda to name a few who were sold as youngsters from as little as $1,000 or if not sold at auction could have been purchased for less than $15,000.
Our weekly fees quoted are all inclusive - there are no hidden extras.
We do not want you to be unhappy with your involvement in the racing game. Hundreds of racehorse owners have met with disappointment and lost virtually their entire investment, because their horse either never made it to the racetrack or simply had no ability - however, Hancox Bloodstock is a professional company offering a guarantee which protects your interest.
What happens to the prizemoney?
Prizemoney is distributed evenly amongst syndicate members after allowing for the standard trainer and jockey percentages, at the end of the month in which the cheque is received.
What happens with trophies/sashes etc ?
We vary the Standard Syndicate Agreement in that all trophies etc are put up for tender with the highest tenderer receiving the trophy and the tender money being added to the prizemoney for distribution.
Who does day to day syndicate management?
Shelley Hancox and Rod Peacock will manage the syndicate. The day to day queries and communication of information will be handled from their Melbourne office. Each horse has their own passworded page on the website, there is a 24 hour message for basic information and we are available to answer questions during office hours. All 10 share partnerships are phoned at entry and acceptance times. Requests for personal INSPECTION of your horse can be directed to Hancox Bloodstock on (03) 52749171 or Fax (03) 5274 9052.
Can the manager increase the weekly fees?
If the manager considered it necessary to implement a minor increase at some future date in order to keep pace with inflation, we envisage that such an increase would make little difference to weekly fees. For example - if fees were increased by 5% or 10% in say 12 months time it would mean that weekly fees would increase at a figure between $2 to $3 per week. Conversely - the reverse also applies - should the current weekly fees exceed the costs involved in racing, the syndicate members will be in credit at the end of that accounting period.
NOTE : Should a horse be in work and racing successfully for abnormally long periods of time a portion of its prizemoney may be retained to keep it going. This also applies for group/interstate racing which may be funded by the horse’s earnings. A resolution is put to shareholders if this occurs.
What happens when my horse finishes it's racing career?
The horse is sold (unreserved) through a recognised Bloodstock Auction (to commence it's breeding career if a colt or filly) and the sale proceeds are distributed to syndicate members as per their share-holding.
If someone offers to buy our horse, what happens?
Occasionally an offer is made for a young racehorse which the trainer and manager think should be seriously considered. When this happens the offer will be circulated with a recommendation and voting slip, the wishes of the majority will rule. Should any syndicate member wish to retain the animal, that member has the option to buy out the other shareholders at the offered price.
Whose racing colours will the horse race in?
Our 20 share Syndicates and 10 share Partnerships will race in the Hancox Bloodstock colours of pink and white quarters, pink sleeves and cap.
What happens if I want to sell my share/leave the syndicate?
You can drop out of the Syndicate at any time. What you can sell your share for, will depend on how the syndicate's horse is going. Hancox Bloodstock will pay up for any such shares until they are sold or taken over.
Is there any extra charge to insure my share?
All horses are insured for their purchase price until syndicated. This cost has been included as a formation expense. For a 20 share syndication, your weekly fees are all inclusive of every cost including insurance. Insurance can be arranged through the syndicate manager, with current insurance rates for bloodstock in the order of 4.0% of the insured value annually.
The insurance cover syndication companies offer with their horses is not going to fully protect your money. These horses are insured against injury resulting in destruction or death. For every horse that meets with a fatal accident, probably 100 would sustain injuries that finish their racing careers, or prevent them starting in their first race.
At Hancox Bloodstock, we prefer to open your eyes to the potentially costly risks involved in racing. as we place a Performance Guarantee on every horse we syndicate.
In fact we go further, even after your horse has won races and reached the end of its useful racing career, if you wish to continue racing another horse, we will make you an offer you will find difficult to refuse.
What arrangements are there for financial management?
All syndicates run their own bank account - normally held at ANZ Bank, Corio. Monies payable to the syndicate will be directed to the account and all accounts for the syndicate's horse will be paid from it. Complete Financial Statements will be issued as per your syndicate agreement. The auditors for Hancox Bloodstock P/L are Bruce Warlow & Associates, Niddrie.
What if our horse is struggling to win or place?
We have great faith in our trainers - if a horse has reached the limits of its racing potential then we would most likely advise you that the animal should be sold. However, a horse that cannot measure up to city level in Melbourne could well be placed to advantage elsewhere, in which case another trainer may be able to take over the horse. Your options will be set out on a voting form and we will abide by the wishes of the majority.
What if our horse is injured and cannot race?
For a 20 share syndicate, in the case of a youngster being injured and NOT BEING able to make it to the track you will be sent the veterinary report, details of the FREE REPLACEMENT horse and a voting slip. The replacement horse will be from our stockpile of horses awaiting syndication. Provided the majority vote to take on the FREE REPLACEMENT horse it will be added in to the syndicate and the original horse sold.
When a horse is sold it will be offered for UNRESERVED SALE at public auction, generally William Inglis & Sons Limited, Oaklands Junction. All shareholders will be advised of the date and time, should they wish to buy the animal concerned.
What happens if our horse is injured after successfully racing?
In the case of a successful animal being injured and having no further use as a racing proposition, you will be furnished with the veterinary report and a voting slip. The animal will be disposed of (providing a majority vote is in place) as above, unreserved at the most appropriate William Inglis Sale or privately through an agent if an acceptable offer is forthcoming.
What would be the life of the syndicate?
Syndicates are normally formed to run for a period of three years. Just prior to the end of the syndication period, the syndicate members will be circulated with a series of options and recommendations pertaining to their horse. Syndicate members then have the right to vote on these options.
How often can syndicate members see their horse?
We welcome syndicate members taking an active interest in their racing and in the development of the syndicate's horse. You will always be able to ascertain the whereabouts of any individual horse by contacting the Hancox Bloodstock office. Horses in training will be available for inspection Monday to Friday between 6.00am and 10.00am and 2.30pm and 4.30pm. Horses agisting or in pre-training can be viewed by appointment with Shelley Hancox, Rod Peacock, (Melbourne) or the farm concerned.