Spendthrift Adds New Twist to Ownership With Wayne O

In a new twist on shared Thoroughbred ownership, B. Wayne Hughes' Spendthrift Farm is offering investors in Wayne O, a well-bred 2-year-old son of Into Mischief , the opportunity to cash in should the colt win a grade 1 race.

Spendthrift is selling micro shares in the colt through MyRacehorse.com, a California-based entity that offers fractional interests in horses who are treated as though they are registered securities. Priced at $95 each, the "micro share" represents 0.01% of the horse and requires no additional payments from the shareholders, who are eligible to receive a portion of any revenue the colt generates on and off the track. MyRacehorse.com also owns an interest in the colt, a half brother to top 3-year-old filly and grade 1 winner Restless Rider, and Spendthrift is listed as the managing partner.

As an added lure to investors, Spendthrift said its "Future Racing Challenge" provides that if Wayne O wins a grade 1 stakes in the U.S., a $6 million bonus will immediately be paid to investors, representing an early portion of the horse's future value as a stallion.

"The bonus is designed as a special incentive for shareholders to receive an early portion of the projected residual value (stallion deal) in the horse if he were to become a stallion," Spendthrift said in its promotional material for Wayne O. "For example, if the horse won a grade 1 and at the end of his career was sold to a stallion farm for a valuation of $10 million, the previously paid bonus would be deducted from the final price with the balance paid to shareholders. The bonus would be split between MyRacehorse and Spendthrift Farm (MyRacehorse shareholders would receive $3.6 million).

Bred in Kentucky by Stonestreet Thoroughbred Holdings, Wayne O is out of the winning Unbridled's Song mare Silky Serenade, a half sister to multiple graded stakes winner and sire Broken Vow . Restless Rider, a daughter of Distorted Humor  out of Silky Serenade, has three wins and four seconds from eight starts, including a victory in the Darley Alcibiades Stakes (G1) and runner-up efforts in four grade 1 or 2 stakes.

Wayne O was purchased last year by Spendthrift for $750,000 from Summerfield, agent, at The Saratoga Sale, Fasig-Tipton's August selected yearling sale, and could make his first start for trainer Steve Asmussen on the Aug. 3 Whitney Stakes (G1) card at Saratoga Race Course.

Spendthrift's Mark Toothaker said the response within the first 24 hours of the Wayne O opportunity being rolled out via social media "was like gangbusters" and that a third of the shares had already been sold as of midday Friday.

Toothaker said the genesis for the offering came to Hughes while he was in Australia, where Spendthrift owns a farm. "The taxi driver asked if (Hughes) was in the horse business, and Wayne said that he had bought a farm there," Toothaker recalled. "The driver then said he owned a small interest in a horse. Wayne has been very much trying to get new people involved in the game and what is the best angle to do it, so he got his attorneys to try to navigate the way to be able do this. The idea is to get new people who get to experience ownership and get to follow the horse. The idea is to expose them to the business, and maybe it will stick with them."

According to MyRacehorse.com, which also offers a user-friendly mobile app, there are many benefits available to micro share owners.

"Our goal is to enrich the horse racing experience for each investor," the site states. "In addition to having an equity interest in the horse, we offer regular updates on how your horse is doing, free backside tours, farm tours, and events during morning workouts so you can watch your horse and chat with the trainer. When the horse races, you can gain access to the winner's circle and enter a raffle for paddock access. We also have premium (paid) events on race day, including owner-exclusive parties."

Spendthrift plans to sell interests in other horses through Myracehorse.com, which already handled a similar offering with Tizamagician, in whom all shares have been sold. A 2-year-old son of Tiznow , Tizamagician is scheduled to make his debut July 27 in the first race at Del Mar.

"This big, striking, athletic-looking colt checked all of the boxes physically and mentally that would lead you to believe he's got what it takes to compete on the biggest stage," the Spendthrift promotional material said of Wayne O. "Everyone who has been involved with this colt believes he is the real deal! Wayne O has been working steadily towards his debut at Saratoga this summer with 10 timed workouts under his belt."

The Wayne O page at MyRacehorse.com contains the usual legal disclaimers associated with investments treated as securities.

"All investors using the site must acknowledge and accept the high risks associated with investing in the securities," MyRacehorse states. "These risks include holding your investment for periods of months or years with limited or no ability to resell and losing your entire investment; you must have the ability to bear a total loss of your investment without a change in your lifestyle. The site may contain 'forward looking statements' which are not guaranteed. Potential investors should read all of the investment documents that are provided to them. MyRacehorse is not an investment adviser, broker-dealer or crowdfunding portal and does not engage in any activities requiring any such registration. All investors should make their own determination of whether or not to make any investment, based on their own evaluation and analysis."

In addition to micro shares, MyRacehorse.com offers 5% shares in some horses for upward of $16,000.

Other horses in the MyRacehorse.com stable include Twinspires.com Fair Grounds Oaks (G2) winner and $434,425 earner Street Band, stakes winner Moonless Sky, multiple stakes-placed Takeo Squared, and stakes-placed Swiss Minister.