Frequently Asked Questions
Thoroughbred Racehorse Ownership
General
How much does it cost to own a racehorse?
This varies greatly depending on the horse’s pedigree, racing level, and ownership structure. Prices can range from thousands to millions of dollars.
Rocket Wrench Racing creates opportunities that range from $2,500 to $10,000 for a minimum of a 5% share of partnership/horse.
Is racehorse ownership profitable?
Having a successful racehorse can be very profitable, but participating in racehorse ownership can be very risky and should not be considered as a conservative investment. Owning a racehorse typically offers more value. in experience and potential tax benefits than overall financial profitability.
What is Rocket Wrench’s ownership structure?
Rocket Wrench Racing is a registered limited liability corporation in the State of Minnesota. You will receive an annual K1 tax document to include in the filing of your personal tax returns.
Costs and Responsibilities:
What are the ongoing costs of ownership?
Typical expenses for owning a racehorse includes costs for training, boarding, veterinary care, blacksmithing, transportation, entry fees, jockey fees, and more.
Who is responsible for training and care?
One of the Rocket Wrench trainers and their staff are responsible for the day-to-day care and racing of all horses.
What are the tax implications of ownership?
You are always encouraged to consult a tax professional to understand potential tax breaks and deductions related to racing expenses and winnings.
Racing and Performance:
What are the different racing levels and stakes?
Races are categorized by age, distance, purse size, and other factors. Stakes races offer higher purses and prestige. Rocket Wrench has found its most success with claimers valued at between $5k-$20k.
How does Rocket Wrench choose a racehorse to claim or purchase?
Managing partner Justin Revak works closely with the Rocket Wrench trainers to identify potential prospects for the stable. Partners are also encouraged to communicate horses that they see as potential additions to the partnership.
What are the risks of injury and retirement?
Racehorses are athletes susceptible to injuries. If a horse incurs a career ending injury or is no longer competitive, said horse will be retired to a reputable aftercare organization.
Additional Questions:
What are the licensing requirements for ownership
Licensing requirements vary by jurisdiction. All partners will have at least a 5% ownership share so licensing will be most likely required. Rocket Wrench will work with you to get licensed when necessary.
What are some of the other benefits for being an owner
Being a licensed racehorse owner provides additional benefits vs. being just a spectator. You will have access to the stable area of the racetrack, be able to visit and interact with your horse, gather in the paddock before each race, and enjoy track perks like free admission and reserved seating. You can also be in the Winners Circle for each win and purchase photos to display. Rocket Wrench also provides invitations to special events, dynamite swag, and the chance to meet and socialize with like minded horse loving individuals.
Remember: This is not an exhaustive list, and further research is crucial before entering the world of racehorse ownership. Be realistic about your expectations, budget, and commitment level before making any decisions.