Hot to Trot - a new racing club

krizon

krizon

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From Country Life mag:

A new racing club was launched at Glorious Goodwood - Hot to Trot is the brainchild of bloodstock agent Luke Lillingston and successful tipster Sam Hoskins, who promise a no-nonsense approach to racehorse ownership. The central strategy is that the horses will be leased, not bought, which they suggest will lead to a higher-class type of animal. Trainers involved are likely to include Andrew Balding and William Haggas and, in Ireland, Jessica Harrington.

For an annual fee of Euros 1,100 (£960), members will enjoy a share in prize money, stable visits, a club day at a major racecourse, a ballot for free or discounted tickets when the horses are running, plus a 'Scoop 6' syndicate on Saturdays.

For info, visit http://www.hottotrotracingclub.com.

I don't know the two chaps involved, but the premise of leasing sounds good to me, since some big syndicates and clubs get caught out when the newly-purchased animal immediately goes lame or proves to be rubbish, which fails to provide the hoped-for enjoyment. The written promise of prize money-sharing is good, too, as I know of some less formalised set-ups where subscribers have yet to sight any that's been won.
 
I like the idea and thought of something similar for well bred national hunt fillies.

I looked at the website last week and get the impression it is a soft launch now to determine interest. They have no horses which is strange. Surely if you are starting off on this you'd have two really well bred types in the club ready to go. Give discounted membership for the rest of 2011. Get your marketing done. It just costs the training fees of two horses for a few months and then decide if it can go or not. They have a clause at the end where they can return membership funds if they don't have ten horses in training.

So it's a bit of a damp squib to start with, unless it's all a clever ploy for next season. The you read the small print

"Each Member shall be entitled, upon the expiry of that Member’s annual membership, to allow his/her membership to lapse or alternatively to renew. In the event of renewal there will be a loyalty discount deducted from the cost of membership renewal. The amount of this discount will be an amount which corresponds to that member’s proportionate entitlement in respect of the Members’ Prize Money Fund for the year in question. The Members’ Prize Money Fund shall be a fund corresponding to 90% of all Owners’ Prize Money won by the Club’s horses during the relevant calendar year less “Exceptional Expenses”. "

So they skim 10% of the prizemoney off the top, and then tell you that you can use your share of this to pay part of your membership. Where is the discount here? They pay you the prizemoney and you renew your membership at full cost?

"All management decisions relating the Club will be made by the Club’s management and Members will have no management powers or role."

This is the problem with bigger clubs....a member has no say in anything. Not even a decision to sell if it is freehold. So who would get the sales proceeds in a Motivator case?

So what does your €1,100 get you? Your percentage shareholding is not defined.

Great idea, but I have my doubts about this club. A few simple things would have made a huge difference. Looks like these guys don't have the funds to do this without getting cash up front. They shouldn't bother doing it at all then. I also see Kirsten Rausing is supporting them. So why hasn't she leased them a horse now? And why would a millionairess send them one of her nicest bred fillies when she can win prizemoney with it herself?
 
PS From their facebook page

"Hot To Trot is £960 a year to include your share in prizemoney from 5 regally bred fillies in training with 5 of the top trainers in the country, days out at the Races and to the Gallops, an annual club day including 3 course lunch and champagne reception, and the option of being included in our Scoop6 syndicate. We feel this offers excellent value! £50 off for every new member introduced also."

Sounds good until they posted this

"All trainers hopefully the lessors of our horses will only be too pleased enough to have their horses with!"

Trainers are the lessors??
 
Shell-out over a grand to a mob with such poor sentence construction? Not bloody likely. The syndicate manager doesn't happen to be a Nigerian prince with cashflow issues, does he?

There are much, much better ways of getting into ownership - as I'm sure plenty members will testify.
 
I can't begin to understand that last sentence (re lessors), Cantoris! Good work on finding them - I don't go on Facebook, so wouldn't have noticed that. I rather got the sense from the initial promotion that they didn't yet have any horses to offer, which is a bit of an arse-about-face way of getting people interested.

I don't think racing clubs are a bad way to get into a taste of ownership, though, Grassy. For those who have gone beyond going racing but aren't quite wedged enough for full ownership costs (or don't want the responsibilities), they offer a convivial and rewarding experience. One which is very well and transparently run is Heart of the South, by John Penny, his wife Caroline, and daughter Eloise. One of them at least always attends the meetings where the club horses run, and I haven't heard of any grumbles from members.

But I would look into all the T&Cs of any offering, especially new ones, whether they're clubs, syndicates, or restricted partnerships. You need to know exactly where your money goes, any add-ons, and what you're entitled to get back. A friend of mine was offered a share in a potential chaser for £4,000 a share. How many other shareholders would there be? Oh, we'd like to get ten if we can. (£40,000 for a horse which had won one Bumper, but was mysteriously not being taken further by its trainer? That alone sounded odd to me.) What are the costs? Well, probably a 10-way split. What if you don't get 10? Uh, well, we're sure we'll get 10 - we've definitely got five interested already. And the prize money? Hey, we'll have a marquee and a party at the end of the season! And eventually...? We'll probably stick him in the sales. And shareholders will be paid out from the proceeds? Uhhh... we haven't quite got to that point yet... Needless to say, I very strongly discouraged participation!
 
On The Bridle said:
I am reporting Cantoris to the competition authority!:lol:
Click to expand...

:ninja: I'll get you yet OTB!!

I think this sort of club is a great idea. Low cost way of getting into ownership. Ok, so you are leasing. That won't matter when you're in the winners enclosure. Once you get a taste for it, you can go and buy a share in owning rather than leasing. My problem here is simply that they really did miss a trick. They went to all the bother of getting coverage but in reality, they aren't selling anything, just a dream. If they had a couple of horses ready to go, half price for the rest of the season, 20% discount for next season, you'd have gotten a few in.
 
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