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In order to first understand how our fractional ownership works, it is imperative that you understand how your investment will generate revenue. Below you will find a breakdown of how purses are distributed in this industry and how claiming works. These are the two main forms of revenue that an owner will generate during ownership of a racehorse.
HOW DO YOU EARN REVENUE IN HARNESS RACING?
► Purse Revenue
Purse revenue is generated if your horse finishes in the top five of any race entered. First place receives 50% of the race purse, 2nd receives 25%, 3rd receives 12%, 4th receives 8% and 5th receives 5%. Currently there is no purses given to horses that finish out of the top 5.
► Claiming Revenue
Claiming revenue is generated when your horse is claimed (sold) for more than what it was purchased for. Note: A loss will occur when a horse is claimed (sold) for less than what it was purchased for. Claiming races range from 8k to 120k with many levels in between on the major canadian circuit.
Now that we understand how revenue is generated, lets look at how expenses are incurred in the ownership of racehorses. The bulk of expenses are covered in the training expense. This expense will cover all costs associated with the upkeep of the horse. Additionally there are maintenance and administration expenses that are used in the running of the syndicate.
HOW DO OUR "NO FEE" AND "FEE" GROUPS WORK?
In our fractional ownership we have created 2 types of ownership in order to make it more flexible for the new owner. The 2 types that are available are :
٭ No Monthly Fees - No expenses and 50% of net purses won to be shared
With this option, once a fractional share is purchased there will be no further payments to be made. All monthly expenses will be paid out from purses received. All owners in this type of ownership will share with the trainer and participate in 50% of all net purses won. If for whatever reason, the horse does not generate enough income to cover all costs, the trainer and HRC will absorb the deficits. You will never be asked to add aditional funds with this plan type.
٭ Monthly Fees - Monthly expense and 100% of net purses won to be shared
"Monthly Fee" groups will consist of a set-up typical in a standard ownership format. Under this format owners will receive a monthly training bill covering all costs associated with the upkeep of your purchase. Each owner will be required to pay for his pro-rated share of this monthly expense. While costs may vary from month to month, HRC and our trainers strive to keep the expense as low as possible without sacrificing the quality of care that is required to compete on the top circuit in the country. Owners and our horses will never be sacrificed to save costs. 2009 training expenses are currently in the $40-50/mth per 1% share. As always under this plan owners participate in 100% of all net purses won.
NOTE: Net Purses Won = Total Purse less track deductions less 6% HRC admin fee. | 
