Raptors and The Frac Club - a sign of the times? Bad or good?

[Chief Stipe]

I see there is a number of of new entrants into the syndication market.  Complaints in the past about the syndication of horses have been focussed on the purchase price markups.  Some do some don't markup the yearling purchase price.

But the new entrants have taken the markups to a new level with 50% or even triple figure markups.  Your thoughts?

For example:

The Frac Club
https://racehorsesnz.com/

Or Raptors
https://raptors.co.nz/

[Special Agent]

I guess potential customers enter with open eyes.

Maybe these syndicators use a "Starbucks" philosophy.

[Huey]

Both look terrible , horrible concepts.

Fake ownership .

[Chief Stipe]

Well I'm guessing at least one of the Trainers doesn't know about it.

More to come...

[Chief Stipe]

I researched a couple of these horse at Raptors.  The actual purchase price is nearly double the actual price from the yearling or R2R sales.  The % available is also described as a Lease not actually a ownership share.  In most cases the current syndicates are full ownership shares not leases.  Raptors charges $39.90 (half price) per 1% lease share per month and takes 25% of any stakes won.  Presumably that is over and above trainer and jockey %.

 

[Murray Fish]

https://www.girlsgetracing.co.nz/?utm_medium=paid&utm_source=fb&utm_id=120225095399750710&utm_content=120225456563380710&utm_term=120225456563390710&utm_campaign=120225095399750710&fbclid=IwY2xjawKhsztleHRuA2FlbQEwAGFkaWQBqyB-vqkW1mJyaWQRMWlJTzRrVXdvMUJBanpnNUIBHqtkm-2TtfDDSijDIy8D2wJkraJF75EVSiZpLxD6kDBsaiWLmU7nRJkKEiWk_aem_p94PFTG4RXRLEbREbmPFgw

[Chief Stipe]

This one is interesting.

https://raptors.co.nz/product/lot-992-karaka-yearling-sales-2024/

Bought for $20k but the lease shares are being sold based on an $80k price.

15% commission on prize money.  $39.90 (half price) per 1%/monthly fee.

https://www.nzb.co.nz/sales/24kbb/992

No trainer registered at NZTR.  Supposedly a rising 3yr old colt.

Perhaps their website is put of date.

 

[Huey]

2 hours ago, Chief Stipe said:

This one is interesting.

https://raptors.co.nz/product/lot-992-karaka-yearling-sales-2024/

Bought for $20k but the lease shares are being sold based on an $80k price.

15% commission on prize money.  $39.90 (half price) per 1%/monthly fee.

https://www.nzb.co.nz/sales/24kbb/992

No trainer registered at NZTR.  Supposedly a rising 3yr old colt.

Perhaps their website is put of date.

 

A fantastic opportunity for you to get involved in racehorse ownership chief, if its no good you can put it in the "pony" scurry races!

[Chief Stipe]

19 minutes ago, Huey said:

A fantastic opportunity for you to get involved in racehorse ownership chief, if its no good you can put it in the "pony" scurry races!

Fails the age and height test.  Actually fails the sniff test as well.

[Chief Stipe]

I see there have been some changes to horse availability on the Raptors site.

[curious]

11 hours ago, Chief Stipe said:

I see there have been some changes to horse availability on the Raptors site.

Hmmm....

[Trojan]

Well perhaps someone instead of pontificationg and taking the piss online got on the blower and called a couple or three trainers.

Edited May 29 by Trojan

[Chief Stipe]

You can find a list of approved/licensed Thoroughbred Syndicators here:

https://loveracing.nz/ownership/syndicators/authorised-syndicators

This is how you become a Syndicator:

Why should I become an authorised syndicator?

If you wish to publicly advertise opportunities to buy shares in a thoroughbred, we strongly advise you to apply to become an authorised syndicator and get NZTR approval of your disclosure statements before you advertise your offer.

The Financial Markets Authority considers shares in racehorses to be Managed Financial Products, so when the shares are advertised or sold to the public, they fall within the scope of the Financial Markets Conduct Act 2013. Anybody who wishes to sell shares in racehorses to the public must comply with the Act. 

Because it is very difficult to comply with the Act, NZTR has negotiated an exemption from the onerous compliance requirements, provided that the person wanting to sell shares to the public becomes an Authorised Syndicator with NZTR and agrees to be bound by the Bloodstock Syndicator Code of Practice. 

If you advertise shares without being an authorised syndicator and without NZTR approval of your disclosure statements, your offer will be regulated by the Financial Markets Authority (FMA), and may breach the Financial Markets Conduct Act 2013 if you haven’t followed the requirements of that Act.

If you are not advertising your horse, and it will be owned by a group of friends or family members, this is a private syndicate and doesn’t come under the same regulations.

How to become an Authorised Syndicator? 

There is a different application process for Trainers or non-trainers. Follow the links below for more information or if you have any questions, please contact Head of Racing Administration, Colin Hall on 027 563 9526 or colin.hall@nztr.co.nz

 

[Chief Stipe]

Does NZTR enforce any rules with regard to Authorised Syndicators?

Why aren't the Disclosure Statements approved by NZTR available on the NZTR website list of Authorised Syndicators?

For that matter why don't the rules insist that Disclosure Statements are publically available on an Authorised Syndicators website?

What is the "exemption" that NZTR has to not comply fully with the Financial Markets Conduct Act 2013?

The Notice is published here:

The Financial Markets Conduct Act 2013 Equine Bloodstock Exemption Notice 2021