Irish syndicate opportunity

C

Cantoris

At the Start
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Jan 7, 2008
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As some of you will know, we leased two 5yo mares after Crimbo. One is a full sister to Master of the Hall and I was able to syndicate her very quickly to my existing members. Grey is in her. Then we leased a sister to graded winner For Bill but we decided not to syndicate her as she was going on a break after we did our initial work with her. Colm Murphy likes her and she performed well in a gallop on the curragh before going on her hols. She will be coming back into training at the end of July. I'm now contemplating a slightly bigger syndicate. 40 * 2.5% shares compared to my usual 10 * 10%. Given the increased numbers and to keep it simple, it's going to be an all-in fee of circa €60-65 a month for 2.5% and €120-130 a month for 5%. Hopefully this will be more affordable for people and the syndicate will start from 1 Sept. We have her under lease until 2015.

I'm trying to gauge appetite for this as I have a few other options with her. If you are interested, let me know.
 
If there was sufficient interest from forum members I'd certainly consider it.
 
I was thinking more along the lines of:

a) Is the syndicate run to make a profit by the organiser(s)? No problem if it is but it should be made clear from the outset.

b) Are syndicate members locked in until 2015?

c) What happens if a syndicate members circumstances change and they need to exit the syndicate? e.g del boy gets extadutated to Spain for outstanding child maintenance payments to a hooker in Mallorca.

d) As the syndicate will not benefit directly from the horses value increasing will the monthly cost reduce year on year in the more likely event of the horse decreasing in value?


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SlimChance said:
a) Is the syndicate run to make a profit by the organiser(s)? No problem if it is but it should be made clear from the outset
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The more pertinent question is whether it is being run at a loss. If 100% of the syndicate is filled, then I will get my management fees as I do in my other syndicates. If 80% of the syndicate is filled the income should cover the training and racing costs. Less than 80% and I make a loss on it. You must remember, there are lots of little costs to be covered in an all-in, including insurance for the owner, HRI fees etc etc. I'm taking a bit of a chance that I can fill at least 50% and that will be part of any agreement.

SlimChance said:
b) Are syndicate members locked in until 2015?
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No, you can leave when you want. The flip side of that flexibility is that it won't be as democratic a process as my other syndicates. Colm and I will make the decisions, but I think that's fair enough given there could be up to 40 members. This is more of an affordable club option than a syndicate.

SlimChance said:
c) What happens if a syndicate members circumstances change and they need to exit the syndicate? e.g del boy gets extadutated to Spain for outstanding child maintenance payments to a hooker in Mallorca.
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Then the hooker gets the child maintenance and I'm left holding the baby!! There will be some provision that if you leave you are not entitled to the last quarters prizemoney. What you don't want is 10 lads leaving on 1 May when the horse is heading for a field and rejoining again on 1 Sept.

SlimChance said:
d) As the syndicate will not benefit directly from the horses value increasing will the monthly cost reduce year on year in the more likely event of the horse decreasing in value?.
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To be honest, you've lost me there.
 
I have a clincher question:

e) Would a person taking 5% be getting the Cantoris card free of charge on Irish jumps meetings :whistle:
 
Can I ask about the significance of the forum majority? I can understand that for a smaller syndicate where you want to have some element of control where there are others coming in that you don't know. But the club format of this opportunity means that the usual democratic process I pride myself on will not be possible. Rather Colm will be making the call on training and racing and ultimately if she stays in training or not, depending on how good or not she is. So not sure why the forum majority is an condition precedent?
 
I'm interested, but just to clarify, as you mention it's more of a club & with more members than usual, so is it a straightforward punt of the fees against the prize money won for the members or will names, colours etc all still apply?
 
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