Ownership Clubs Low-Risk Way to Try Racing

Horse ownership clubs run by tracks can provide a low-cost, low-risk avenue for potential new owners to dip their toes in the sport, according to presenters at a panel during the University of Arizona Racetrack Industry Program's Global Symposium on Racing and Gaming Tuesday, Dec. 8 in Tucson, Ariz.

Andrew Offerman, director of racing operations at Canterbury Park, and Sophia McKee, vice president of marketing with Emerald Downs, both outlined ownership clubs their tracks have offered. They said the clubs have brought in some new owners and at the least have helped educate members and bring publicity to the track.

Both ownership clubs require a one-time fee for members, running $250 at Canterbury and $500 at Emerald. Club members do not lose money beyond that initial investment. While the groups are run as not-for-profit operations—any profits go to charity determined by the group—members enjoy access to the track, opportunities to stand in the winner's circle if their horse wins, a first-hand experience with horses, and a chance to meet people.

Offerman said Canterbury launched its club in 2009, in part because when it received questions about horse ownership it didn't always know where to turn. After launching the club with 16 members in 2009, it has expanded to more than 200 members in 2015. 

In the club each member pays $250 for a percentage in a horse that falls below 5%. A new club is formed each year as a not-for-profit operation. Communication and education with club members is conducted through a free blog platform. During its years of operation at Canterbury, club-owned horses have won nearly a third of their starts.

In a message presented by video, Ted Grevelis of Canterbury, said several initial members have gone to another ownership level, entering traditional partnerships. Grevelis said those owners have had horses claimed from them and privately purchased, giving them the full experience. 

McKee acknowledged that Emerald saw what Canterbury was doing and put a similar program in place. She noted that with their racing staffs and media communications teams, tracks are in a good position to take the lead on such programs. She said it's important for the programs to select the right trainers, who are willing to educate people and answer what they may consider basic questions, sometimes over and over.

Participants at Emerald receive perks like free admission and free parking (usually $7 each). McKee said about 15% to 20% have gone on to become owners or partners. 

"These (club participant) numbers look really fabulous and you get excited. The reality is the conversion rate of club owner to real owner is more difficult," McKee said. "We're seeing 10% to 15% of the owners continue on their own, typically as syndicates."

Emerald's club boasts a huge success story in Jim and Mary Beth Perkins, who since their initial $500 membership have gone on to spend nearly a half-million dollars on horses. They went to $250,000 to land Belle Hill at the 2014 Fasig-Tipton Kentucky horses of racing age sale. Belle Hill has won win three stakes at Emerald Downs and this year's Autumn Miss Stakes (gr. III) at Santa Anita Park.

"Without the club, they never would have become horse owners," McKee said. "Or even worse, they may have become horse owners but in with the wrong people."

Seeing the successes of the club, the Washington Thoroughbred Breeders and Owners Association has launched a similar club for people interested in Thoroughbred breeding.

Both tracks said they've benefitted from publicity, with newspaper and media coverage, about the clubs.