One of the most commonly asked questions from new members of our Racing Club or purchasers of our Premier Shares is about Prize Money. They wonder if they will win any, how much, and when they will receive it!
There is a lot of publicity in the racing media about how poor the prize money available in the UK is right now, but regardless of that, some horses do win money while others just don't.
The Gold and Green Racing Club and Premier Shares have had a clear, transparent process for a number of years. We regularly survey our customers and offer them the chance to suggest changes, but the consensus is always the same: Leave it well alone!
RACING CLUB PRIZE MONEY
The harsh reality of the prize money won by the horses in the Racing Club is that when split among the number of members, it is just not worth distributing.
That doesn't mean there isn't any, or that members should not benefit from what is won, but we feel that there is a better way for the money to actually mean something.
Annually, we contribute the Racing Club's portion of Prize Money to a racing charity. In the past, this has typically been Racing Welfare; however, this year, we will be conducting a member vote in December to determine its destination.
Members receive an auto-discount on extending their membership instead of a share of the prize money, which has proven to be more valuable each year than what they would have gotten from the prize money pool.
The Racing Club holds a collective ownership stake of either 5% or 10% in every horse raced, typically resulting in relatively modest amounts. However, 2024 has proven to be our most successful year by far, so there is hope that the shared earnings will see a noticeable increase by year-end.
PREMIER SHARE PRIZE MONEY
Premier Shares are offered for a specific period, with a predetermined expiration date, giving you the option to extend or allow the shares to expire at that time.
At the conclusion of every period, we combine the account for each horse, listing all expenses on one side and all prize-money on the other side.
If the calculations result in a negative number, we do not ask the shareholders to cover the difference, but if the number is positive, it will be distributed.
The initial investment covers all training, veterinary, and farrier expenses, while racing costs are not included. Race entry fees, jockey fees, racing administration costs, and travel expenses will be added to the expenditure, and will be deducted from the prize money before distribution. In the event that these costs result in a negative balance, no additional charges will be requested. This approach represents our risk and guarantees full transparency in the planning and positioning of horses for races. If we don't get that right and the horses do not earn any money, we take the hit.
It is important to mention that the sum reported in the Racing Post as the winnings of a horse in a race does not reflect the amount received by the owner in their racing account, as there are deductions for the trainer, the jockey, and VAT.
Despite the challenges, there is a bright side! While we don't advise getting into racehorse ownership solely for financial gain, there are instances where a horse's success can lead to substantial winnings. We've had a few horses compete for prizes as high as £100,000, which would have massively benefited both the charity and shareholders financially. However, such victories are rare and not easily achieved.
When you own a racehorse, the true value lies in the journey and not in the financial gains. Our efforts are dedicated to enhancing this unique experience to the fullest. While we cannot predict the horse's success or the monetary rewards, we can promise an exceptional journey.
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