How to start a new racetrack

[Lemon Drop Husker]

Originally Posted by highnote

I found another option:

It might be possible to raise money by simultaneously using Reg CF / Reg D (560c) securities that would allow both accredited and non-accredited investors to participate in a racetrack investment. This would allow more than $1 million to be raised.

It's hard to say if the risk of loss is greater by raising more money or if there is less risk.

With less money raised there is less to lose, but you have to make every penny count.

By raising a lot of money it is easy to overspend on the wrong things. The first law of economics is the more you make the more you spend.

https://www.sec.gov/rules/final/2015/33-9974.pdf

http://www.pr.com/press-release/671436

Lincoln, NE is ready (again) for another racetrack.

Lack some funding, but have the site to make a beautiful 1 mile track.

If you want to bring it. Bring it.

[baconswitchfarm]

[QUOTE=highnote;2208881

It's hard to say if the risk of loss is greater by raising more money or if there is less risk.[/QUOTE]



The risk of loss is the same . 100%

[Fager Fan]

Ok, let's go over your plan to this stage:

You want to find some cheap land in the middle of nowhere, build no barns or grandstand, build no track surfaces but have the horses run over the natural terrain, buy a bunch of $500 horses, make them run 4 mile heats, and pay about 10 trainers to train them who'll maybe take $1000 a month for their efforts, and find some combo jockeys/exercise riders/grooms who'll maybe take $500 a month for theirs, and then you expect that you'll open your gate and find a hungry mob of bettors throwing money your way because you've got low takeout.

Is this about right?

[elhelmete]

There have recently been a couple of crowdfunded horse ownership groups. I don't think they raised more than $200k.

Elon Musk, not crowdfunded, has burned through how many hundreds of millions of $ and is yet to make a profit?

[highnote]

Originally Posted by baconswitchfarm

The risk of loss is the same . 100%

Yes. That's correct on a probability basis. On a monetary basis, you can only lose $1 million if you raise a million. Or you can lose $2 million if you raise $2 million.

[highnote]

Originally Posted by Fager Fan

Ok, let's go over your plan to this stage:

You want to find some cheap land in the middle of nowhere, build no barns or grandstand, build no track surfaces but have the horses run over the natural terrain, buy a bunch of $500 horses, make them run 4 mile heats, and pay about 10 trainers to train them who'll maybe take $1000 a month for their efforts, and find some combo jockeys/exercise riders/grooms who'll maybe take $500 a month for theirs, and then you expect that you'll open your gate and find a hungry mob of bettors throwing money your way because you've got low takeout.

Is this about right?

First of all, I appreciate your comments. But you'd be a horrible salesperson for this track!

"cheap land", "middle of nowhere", "build no barns", "build no track surfaces", "hungry mob of bettors". That is a very half glass full way of looking at things.

I would spin it like this:

"A fair priced piece of land (bought or leased) would be needed to be found near a population center. The track would be built in the tradition of English country racecourses. The racing would return bettors to days of old where heats of four mile races were run by horses that were cherished for carrying their speed over a distance of ground."

The signal would be distributed for bettors worldwide to enjoy. The attraction would be the uniqueness and novelty of the racing. Not everyone enjoys a steady diet of 5 horse fields running 6 furlong dirt races.

I, for one, would love to bet on horses running, say, a mile and five eighths over an undulating turf course that might have a left and right hand turn. Hell, maybe we will even have them run clockwise.

The nature of the racing would depend on how much can be raised.

Some English racecourses hold racing one or two days per year once or twice per year. Remember, we're not trying to compete with NYRA. We're challenging ourselves to create a racetrack that is built, owned, and operated by and for horseplayers.

If racing is held just a couple of days per year twice per year then it should be possible to get more horses to ship in for a festival type of racing. Barns would not be needed as the horses will be housed in the owners' trailers. This is the way it's down at the big annual horse show in my town.

If a million dollars can be raised then that is one constraint.

If more than a million can be raised then of course there are more options.

The hardest part will be to raise the money. But even if a million can be raised it will still be a challenge to create a viable product.

If anyone has a better idea, besides not doing it at all, then have at it!

[highnote]

Originally Posted by Lemon Drop Husker

Lincoln, NE is ready (again) for another racetrack.

Lack some funding, but have the site to make a beautiful 1 mile track.

If you want to bring it. Bring it.

I love Nebraska. One of my favorites states!

One thing NE has is plenty of land. I would think the land is fairly pricey unless you go farther west beyond Omaha and near the sand hills where it is not as productive for growing crops.

What are land prices like around Lincoln? Off the top of my head I don't know how many acres you'd need for a 1 mile track. Any idea?

[highnote]

Originally Posted by elhelmete

There have recently been a couple of crowdfunded horse ownership groups. I don't think they raised more than $200k.

Elon Musk, not crowdfunded, has burned through how many hundreds of millions of $ and is yet to make a profit?

I started a horse ownership syndicate several years ago. As I said earlier, our first winner was purchased privately for $500. We only had 6 members.

It would probably require a 1,000 members to raise $1 million. Some might put up $10,000 each while others would put up $100.

There is no guarantee a horseplayer owned track would turn a profit right away. Like any business it takes time to build it up.

How long did it take Amazon to make a profit? Has Bezos ever turned a profit?

[AlsoEligible]

Originally Posted by highnote

Has Bezos ever turned a profit?

You mean the guy who held the title of richest man in the world last month, with a net worth of $90 billion?

I'm going to go out on a limb and say yes, he's turned a profit.

[highnote]

Originally Posted by AlsoEligible

You mean the guy who held the title of richest man in the world last month, with a net worth of $90 billion?

I'm going to go out on a limb and say yes, he's turned a profit.

Turns out Amazon has 8 straight quarters of profit.

How many years did it go before turning a profit?

This article might be a little dated, but it says 20 years had already passed and Amazon hadn't turned a profit:

http://www.ibtimes.com/amazon-nearly...m-care-1513368

I imagine Bezos took a lot more flack from naysayers than I ever will, but who is getting the last laugh now -- one of the richest men in the world.

[toddbowker]

Originally Posted by highnote

First of all, I appreciate your comments. But you'd be a horrible salesperson for this track!

"cheap land", "middle of nowhere", "build no barns", "build no track surfaces", "hungry mob of bettors". That is a very half glass full way of looking at things.

I would spin it like this:

"A fair priced piece of land (bought or leased) would be needed to be found near a population center. The track would be built in the tradition of English country racecourses. The racing would return bettors to days of old where heats of four mile races were run by horses that were cherished for carrying their speed over a distance of ground."

The signal would be distributed for bettors worldwide to enjoy. The attraction would be the uniqueness and novelty of the racing. Not everyone enjoys a steady diet of 5 horse fields running 6 furlong dirt races.

I, for one, would love to bet on horses running, say, a mile and five eighths over an undulating turf course that might have a left and right hand turn. Hell, maybe we will even have them run clockwise.

The nature of the racing would depend on how much can be raised.

Some English racecourses hold racing one or two days per year once or twice per year. Remember, we're not trying to compete with NYRA. We're challenging ourselves to create a racetrack that is built, owned, and operated by and for horseplayers.

If racing is held just a couple of days per year twice per year then it should be possible to get more horses to ship in for a festival type of racing. Barns would not be needed as the horses will be housed in the owners' trailers. This is the way it's down at the big annual horse show in my town.

If a million dollars can be raised then that is one constraint.

If more than a million can be raised then of course there are more options.

The hardest part will be to raise the money. But even if a million can be raised it will still be a challenge to create a viable product.

If anyone has a better idea, besides not doing it at all, then have at it!

That track is already built (well other than the 4 mile races). It's called Kentucky Downs.

[highnote]

Originally Posted by toddbowker

That track is already built (well other than the 4 mile races). It's called Kentucky Downs.

And isnt it the number one rated track by HANA?

[Lemon Drop Husker]

Originally Posted by highnote

I love Nebraska. One of my favorites states!

One thing NE has is plenty of land. I would think the land is fairly pricey unless you go farther west beyond Omaha and near the sand hills where it is not as productive for growing crops.

What are land prices like around Lincoln? Off the top of my head I don't know how many acres you'd need for a 1 mile track. Any idea?

Land is already there.

When they tore down the eyesore that was State Fair Park, they built a new venue (per say) in Southwest Lincoln. It is a great simulcasting spot, with intentions to be a full racetrack.

Just lack funding right now, but they have the map ready for a 1 mile racetrack ready to go. And as I said, the land is already there.

It really is a great site.

[jimmyb]

Originally Posted by Lemon Drop Husker

Land is already there.

When they tore down the eyesore that was State Fair Park, they built a new venue (per say) in Southwest Lincoln. It is a great simulcasting spot, with intentions to be a full racetrack.

Just lack funding right now, but they have the map ready for a 1 mile racetrack ready to go. And as I said, the land is already there.

It really is a great site.

What would be the cost to partner in, in an already functioning simulcast venue? Does the state own the property? Are they leasing it out or is it privatly owned?

[Lemon Drop Husker]

Originally Posted by jimmyb

What would be the cost to partner in, in an already functioning simulcast venue? Does the state own the property? Are they leasing it out or is it privatly owned?

Excellent questions.

Venue/property is no longer state owned. Investments thus far own the current place. Thus, privately owned, per say.

I'm not rich enough to look into it much further, but I would if I could.

I can certainly hook you up with people if you are truly interested.