NEW SYNDICATE LET'S GO RACING

[v j stauffer]

Well I can only play so much golf so I've decided to try to put together a racing syndicate.

It's something I've always wanted to do.

Input from PA Nation will go a long way towards telling me if it might fly or if I'm just pissing in the wind!

Right up front I'll tell ya we may crash and burn. But if we do we're going down in style and with a MASSIVE amount of FUN and ACTION!

Heartfelt thanks to PA for letting me share this idea with all of you.

Please check out the proposal on my website...

www.vicstauffer.com

I'm very interested in what you think. If you're interested and I'm open to any suggestions on how to best succeed.

We won't start funding until the fall. First claims/purchases around Nov. 1

First entries are hopefully on opening day of the 2023 - 2024 season at Oaklawn in Dec.

LET'S GO!!

[Poindexter]

First off I wish you success in this. As a disclaimer I am not investing (nothing personal, nothing about your idea, just not willing to spend that kind of money on said investment in my current financial position), so my opinion is irrelevant but I think you want some input on what might go through the heads of prospective investors.

Some questions that come to my mind are

1) You said you will get 70,000 up front on a million dolllars invested but 35,000 goes back into the fund (so I am assuming that the 35,000 is your 3.5 % portion in the fund. What about years 2 on? You are going to be living off of a 3.5% stake in this fund or are you getting a cut of the profits as well.

re:

I will take on no other projects during the time frame of the agreement. My focus will be 100% myopic on us having the maximum action, interaction, and, most importantly, fun.


Sounds great but you are considered a top notch track announcer. Horse race announcing has got to be the toughest announcing gig there is. One would think that somewhere down the line a racetrack will want to hire a top notch announcer. You are excluding yourself from the pool? How about betting tournaments? I know years ago you were highly active at Derby Wars (I believe). Does that continue (one can argue that watching replays and handicapping horses is an overlapping job description, but you do need to make it clear that you plan on being actively involved in playing horse tournaments, because an investor may not see it the same way). Also what about TVG. I think you were on it before and are clearly qualified to be on it again if presented the opportunity. Maybe a jockey agent again? You have a lot of opportunity in this game, why are you leaving it all on the table for something that might be fun, but probably the best case scenario is that it makes 25% a year. I am not even clear on whether you would receive a percentage of profits. Seems to me like you are giving up a lot of potential opportunity for very little return. That is your prerogative, but you want to make sure you are not hurting yourself in this process.

Seems to me you don't have to give up all your potential opportunities to do this. If someone is going to invest with you, it is because they can afford it, they respect your talent and they like you see it as an opportunity to have a lot of fun for what is a modest investment for many. I don't think if you are playing horse tournaments or making appearances on TVG or pick up an announcing gig for a short meet somewhere that you won't be able to do this job very competently.

My last question is your to use a trainer that has so many horses and so many starts per year. I am going to assume that over time you will have 20 to to 25 horses and seems to me that I would want a smaller barn that can pay special attention to my investment (given that I am providing a million dollar stable to them) and perhaps even better pricing. In other words imo it seems that bringing a million dollar barn to a really good trainer with a smallish barn would make more sense than adding a million dollars worth of horses to a trainer that perhaps already has 10 million dollars worth of horses or more.


Just some general thoughts I have. Hope it helps. I am not trying to be a naysayer, just trying to provide some questions that came to my mind as I read it. As I said, I wish you the best on this and hope it brings you and your investors all the joy you think it will.

[AndyC]

Originally Posted by v j stauffer

Well I can only play so much golf so I've decided to try to put together a racing syndicate.

It's something I've always wanted to do.

Input from PA Nation will go a long way towards telling me if it might fly or if I'm just pissing in the wind!

Right up front I'll tell ya we may crash and burn. But if we do we're going down in style and with a MASSIVE amount of FUN and ACTION!

Heartfelt thanks to PA for letting me share this idea with all of you.

Please check out the proposal on my website...

www.vicstauffer.com

I'm very interested in what you think. If you're interested and I'm open to any suggestions on how to best succeed.

We won't start funding until the fall. First claims/purchases around Nov. 1

First entries are hopefully on opening day of the 2023 - 2024 season at Oaklawn in Dec.

LET'S GO!!

How do you expect the legal and syndication fees to cost? Do you have some estimate as to what the tax return preparation and administration costs will be?

[v j stauffer]

Originally Posted by Poindexter

First off I wish you success in this. As a disclaimer I am not investing (nothing personal, nothing about your idea, just not willing to spend that kind of money on said investment in my current financial position), so my opinion is irrelevant but I think you want some input on what might go through the heads of prospective investors.

Some questions that come to my mind are

1) You said you will get 70,000 up front on a million dolllars invested but 35,000 goes back into the fund (so I am assuming that the 35,000 is your 3.5 % portion in the fund. What about years 2 on? You are going to be living off of a 3.5% stake in this fund or are you getting a cut of the profits as well.

re:

I will take on no other projects during the time frame of the agreement. My focus will be 100% myopic on us having the maximum action, interaction, and, most importantly, fun.


Sounds great but you are considered a top notch track announcer. Horse race announcing has got to be the toughest announcing gig there is. One would think that somewhere down the line a racetrack will want to hire a top notch announcer. You are excluding yourself from the pool? How about betting tournaments? I know years ago you were highly active at Derby Wars (I believe). Does that continue (one can argue that watching replays and handicapping horses is an overlapping job description, but you do need to make it clear that you plan on being actively involved in playing horse tournaments, because an investor may not see it the same way). Also what about TVG. I think you were on it before and are clearly qualified to be on it again if presented the opportunity. Maybe a jockey agent again? You have a lot of opportunity in this game, why are you leaving it all on the table for something that might be fun, but probably the best case scenario is that it makes 25% a year. I am not even clear on whether you would receive a percentage of profits. Seems to me like you are giving up a lot of potential opportunity for very little return. That is your prerogative, but you want to make sure you are not hurting yourself in this process.

Seems to me you don't have to give up all your potential opportunities to do this. If someone is going to invest with you, it is because they can afford it, they respect your talent and they like you see it as an opportunity to have a lot of fun for what is a modest investment for many. I don't think if you are playing horse tournaments or making appearances on TVG or pick up an announcing gig for a short meet somewhere that you won't be able to do this job very competently.

My last question is your to use a trainer that has so many horses and so many starts per year. I am going to assume that over time you will have 20 to to 25 horses and seems to me that I would want a smaller barn that can pay special attention to my investment (given that I am providing a million dollar stable to them) and perhaps even better pricing. In other words imo it seems that bringing a million dollar barn to a really good trainer with a smallish barn would make more sense than adding a million dollars worth of horses to a trainer that perhaps already has 10 million dollars worth of horses or more.


Just some general thoughts I have. Hope it helps. I am not trying to be a naysayer, just trying to provide some questions that came to my mind as I read it. As I said, I wish you the best on this and hope it brings you and your investors all the joy you think it will.

Wow! Such a GREAT post. Well thought through. Well conveyed.

Let me go over your questions and concerns one by one.

1) Just like anyone else with any good sense. I know very well investing in race horses is very risky indeed and not likely to show any significant profit unless we get very lucky and have a couple of horses that carry the day for the rest of the stable. My compensation for managing the syndicate is similar to a commission that a reputable bloodstock agent would charge for a private purchase. Of that $70,000 I'm committing to turning back half my compensation $35,000 which will be active in the fund. I'm doing this in a sign of good faith and because I want to ride the roller coaster of emotions just like everyone else. The contract for this stable will have a term of one year. We will settle up and make decisions about the horses still in the stable at that point. Hopefully, we will do it again for another year and so on. If so, my compensation will likely be the same. I will not get any extra payment from profits over and above my 3.5% just like everyone else.

2. I'm saying this for the first time in public. Had Oaklawn not terminated my employment this season. I had already decided that 2023 would likely be my last wearing the head set. I've called 45 wonderful years. Approximately 50,000 total calls including 350 Grade 1's. I'm about to turn 64. Tomorrow is promised to no one and I have other things I'd like to experience while I'm still young enough to be vital and enjoy. One of which is to manage a syndicate just like this. Something I never could do while also announcing, being an agent or being a Steward. As for TVG I truly covet my affiliation with them since their inception in 1999. At this time I have no desire to return to their airwaves. As for returning to full time announcing I'd say it's a longshot but not 100% out of the question. If Del Mar, Santa Anita, Keeneland or Churchill Downs called I'd certainly be tempted. One thing I'll make very clear right now. It would not be difficult at all to both be a full time announcer and manage this stable. One of the coolest things about being a race caller is your responsibilities are confined to the 4 our 4 1/2 hours of live racing. The rest of the mornings and after work would give me ample time to run the syndicate. As for playing tournaments that will also not be a problem. I'm sure I can allocate plenty of time to hopefully excell at both. As I said before I'm almost 64. Both Tina and I have been very blessed and are now very grateful we can now focus more on what brings us the most joy rather than what's needed for the bottom line.

3. Choice of Trainer. The decision to use Robertino was not made cavalierly. I've become friends with him over the years. I have ultimate respect for his work ethic, his staff and his skill set. Perhaps the biggest part of the decision though is the preferred claiming rules that exist at Oaklawn. While I understand the reasoning for the rule. It does make things very difficult for the smaller stables who have less churn with horses into and out of their barn. Diodoro has a unique ability to ration his time whether a client has one or 30 horses. I feel very confident we'll get our fair share of his attention. IMO winning begets winning and attaching our flag to the leading trainer at Oaklawn can't be a bad thing.

Thanks so much for your posting.

Please feel free to ask anything you'd like at anytime.

Respect,

VJS

[v j stauffer]

Originally Posted by AndyC

How do you expect the legal and syndication fees to cost? Do you have some estimate as to what the tax return preparation and administration costs will be?

Excellent question Andy. One of the reasons I'm coming out with this opportunity 6 months in advance is to be completely tied on regarding questions just like the one's you asked.

Right now I'm in the midst of learning all I can about those issues.

I can say we will employ an elite accountant who must have experience in horse racing.

That person will also provide K1 tax reports for every member.

Administration costs will come from the original fund. Once a person invests that member will never receive a bill for ANYTHING additional.

We will provide a full transparent accounting on a monthly basis.

[elhelmete]

I was part of one for a few years, and overall I really enjoyed it. Our best year I think we got about 60% of our investment back. I never ever expected to make money, but I saw this as the equivalent of buying season tickets for some team for which I was guaranteed to get 0% back, haha. A few things stick out: {EDIT: I wrote this before i visited your website oops!}

1) It was important in a few respects to close out the LLC each year and start a new LLC the following year. It made taxes for all parties cleaner. It also meant that our horses had to be placed where we'd basically be assured they'd be claimed or private purchased close to year end.

2) It was good to know if this was to be a 100% claiming synd or if it could include private purchases.

3) It was good to know the prices ranges for claims/purchases so we would have an idea how many horses we'd likely have in training..i.e., how much action to expect.

4) Be very clear where you expect your horses to run, and send out regular links to stable alerts for works, entries, etc. to all partners.

5) Assume all partners are rank novices about horse racing and explain everything. I was surprised about a couple partners thinking a 4yo could be on the Derby trail, or that every mare we claimed would be a 6-figure broodmare sale after we raced her in two $15K claimers. And so on. Just eliminate as many misconceptions as you can.

6) Be clear about whether you will claim/buy horses in partnership with others, and what that means to any purse $ won and expenses incurred.

7) I got out before HISA...might be good to know and tell partners how the rules might impact licensing, barn visits, etc. I pulled a license even though I didn't have to because it was basically free admission and parking and program statewide...a complete no-brainer for me. I don't know if HISA would make that more difficult.

Might write more later. Good luck!

[Robert Fischer]

Wishing you success.
You bring grade 1 experience and excitement.



I don't have any specific questions, and I don't have any specific competence in these things.


In these things (acting on a good idea, momentum, gauging/generating interest, formulating a more specific plan upon emulating and creating in the direction of the kind of syndicate that you wish to be
- - Always seems a good thing to 'stand on the shoulders of giants' and use successful models and successful working parts.


( and for someone who is offering you suggestions of stuff I'm overall clueless about, excuse the long extended post! lol )


The stuff Suff mentioned in another thread in regard to VIP&standard buffet/amenities/bar type of things was a valued 'hidden benefit' to ownership group membership that I hadn't focused on before.

Basically, a privilege in the ownership fee, was the increassed value for members who enjoyed attending events.

Inclusion[exclusivity/location/inclusion] to nice areas, the social aspect of other members, and a few personalities/celebrities (of which you yourself are an excellent start)


passing along if you hadn't seen the thread;

Originally Posted by Suff

People are wrong about [syndicate]

I'm not a member, but I sit in their private lounge frequently and I've met many who are.

They love it and when I hear them explain why they like it, it makes sense to me.

For very little money. $100 , you become an owner, and if your at the track when your horse wins, you go in the winners circle.

Frequently, you also get a seat in the lounge, a program etc. On big days you pay. For the FOY it was $75 , with all day buffet. They play a $250 pik5 that is shared with all members (attending) if it cashes. They give away swag. Hats shirts etc..

Mostly people like the community. It's a lot of middle age couples who like to commune with like minded people. They are the $2 bettor tbh.

Also, [syndicate name] is in a branding partnership with 1st

They name is plastered all over Gulfstream and as I mentioned above, they've taken over the south beach tent.

If you ever been to the old south Beach tiki bar on the south side entrance, that tiki bar is gone. It's now a big tent, with a bar, two live tellers, 12 machines, tables and chairs... two dozen TV's and its on the rail. It's nice


My race horse might be the future based upon my experiences.

Originally Posted by Suff

Originally Posted by rastajenk

I know some [syndicate name] people, Suff's description fits them as well. As a concept, it seems like something that could have happened years ago, and some smaller syndicates have existed for a while, with maybe a lower ceiling, but the success of [syndicate name] is fun to watch.

seems that if this is a direction that you plan to take, making the most of these types of things could reinforce the value and member satisfaction.

[v j stauffer]

Originally Posted by elhelmete

I was part of one for a few years, and overall I really enjoyed it. Our best year I think we got about 60% of our investment back. I never ever expected to make money, but I saw this as the equivalent of buying season tickets for some team for which I was guaranteed to get 0% back, haha. A few things stick out: {EDIT: I wrote this before i visited your website oops!}

1) It was important in a few respects to close out the LLC each year and start a new LLC the following year. It made taxes for all parties cleaner. It also meant that our horses had to be placed where we'd basically be assured they'd be claimed or private purchased close to year end.

2) It was good to know if this was to be a 100% claiming synd or if it could include private purchases.

3) It was good to know the prices ranges for claims/purchases so we would have an idea how many horses we'd likely have in training..i.e., how much action to expect.

4) Be very clear where you expect your horses to run, and send out regular links to stable alerts for works, entries, etc. to all partners.

5) Assume all partners are rank novices about horse racing and explain everything. I was surprised about a couple partners thinking a 4yo could be on the Derby trail, or that every mare we claimed would be a 6-figure broodmare sale after we raced her in two $15K claimers. And so on. Just eliminate as many misconceptions as you can.

6) Be clear about whether you will claim/buy horses in partnership with others, and what that means to any purse $ won and expenses incurred.

7) I got out before HISA...might be good to know and tell partners how the rules might impact licensing, barn visits, etc. I pulled a license even though I didn't have to because it was basically free admission and parking and program statewide...a complete no-brainer for me. I don't know if HISA would make that more difficult.

Might write more later. Good luck!

Great stuff E.

Looking forward to when you write more.

Love your advice about investors being novices. I wouldn't have thought of that. Will be implemented.

Thanks for the support.

[v j stauffer]

Originally Posted by Robert Fischer

Wishing you success.
You bring grade 1 experience and excitement.



I don't have any specific questions, and I don't have any specific competence in these things.


In these things (acting on a good idea, momentum, gauging/generating interest, formulating a more specific plan upon emulating and creating in the direction of the kind of syndicate that you wish to be
- - Always seems a good thing to 'stand on the shoulders of giants' and use successful models and successful working parts.


( and for someone who is offering you suggestions of stuff I'm overall clueless about, excuse the long extended post! lol )


The stuff Suff mentioned in another thread in regard to VIP&standard buffet/amenities/bar type of things was a valued 'hidden benefit' to ownership group membership that I hadn't focused on before.

Basically, a privilege in the ownership fee, was the increassed value for members who enjoyed attending events.

Inclusion[exclusivity/location/inclusion] to nice areas, the social aspect of other members, and a few personalities/celebrities (of which you yourself are an excellent start)


passing along if you hadn't seen the thread;







seems that if this is a direction that you plan to take, making the most of these types of things could reinforce the value and member satisfaction.

Couldn't agree more. Great insight. The LET'S GO RACING team will be MUCH more intimate and proactive.

If we're lucky enough to make a big score on one or more horses there WILL be a financial impact.

Thanks

[elhelmete]

Be clear that all claiming, purchase/sale, jock choices, when/where to run/scratch, all decisions are ultimately made solely by the trainer and you (as the manager).

Have an aftercare program in place and put that in the forefront of your marketing.

[v j stauffer]

Originally Posted by elhelmete

Be clear that all claiming, purchase/sale, jock choices, when/where to run/scratch, all decisions are ultimately made solely by the trainer and you (as the manager).

Have an aftercare program in place and put that in the forefront of your marketing.

Great point regarding aftercare. Will do.

Of course input will be considered.

As for decisions of course the trainer will have a major say.

However, the final decisions will be made by me.

The trainer works for us and the members have paid me a generous commission to make the tough calls.

[elhelmete]

Originally Posted by v j stauffer

Great point regarding aftercare. Will do.

Of course input will be considered.

As for decisions of course the trainer will have a major say.

However, the final decisions will be made by me.

The trainer works for us and the members have paid me a generous commission to make the tough calls.

That's fine, my point was more about the partners aren't 'voting' on placement, claims, works, etc. It can be a dicey line to walk at times (I've seen it).

Also, and I need to keep this sort of vague, but other synds I'm familiar with intentionally cap their raise at a much smaller total. I'm not sure of ALL the reasons they do so, but from what I do know all I can say is it's worth investigating.

[v j stauffer]

Originally Posted by elhelmete

That's fine, my point was more about the partners aren't 'voting' on placement, claims, works, etc. It can be a dicey line to walk at times (I've seen it).

Also, and I need to keep this sort of vague, but other synds I'm familiar with intentionally cap their raise at a much smaller total. I'm not sure of ALL the reasons they do so, but from what I do know all I can say is it's worth investigating.

I'd love for you to speculate as to what the merits of capping the raise is.

[Inner Dirt]

What is the deadline to join? I had a rough year, but I think things are turning
around. I had 3 months of no work due to various ailments on top of some irregular expenses. Being self employed schedule C filer out of work equals no income. Can two people split a minimum stake?

[elhelmete]

Originally Posted by v j stauffer

I'd love for you to speculate as to what the merits of capping the raise is.

I think ultimately it may be a tax thing, where the LLC had to establish a valuation and capping at an achievable amount simplified it.

Based on my experience, a smaller cap raise would keep the # of partners more manageable which may be a good thing for your first outing doing this. Better to have more interest than space for year 2!

Thought of one more thing...warn people about the possibility of a mid-year or EOY cap raise, what they are, what might make them necessary and what happens if a partner declines to participate.