Why racing can thrive with mass ownership

MyRacehorse sold Authentic stock for $260 before winning the Kentucky Derby and the Breeders' Cup Classic in 2020. Photo: Horsephotos/Getty Images

There can't be many seasons when even the three Epsom Derby winners — Auguste Rodin, Desert Crown and Adayar — compete against each other.

For this we should be grateful to wealthy Middle Eastern racehorse owners who can afford to race without fear of the financial consequences of losing them. And to John Magnier, whose Coolmore Stud venture values ​​the challenge of the racetrack when it comes to raising stallions.

An era when precious Classic winners were herded to a stud farm to maintain their unbeaten records and hide their lack of mental and physical activity was hurting the breed.

But for racing to flourish in the UK, a more democratic transition from mega-rich owners to mass micro-ownership is needed.

Far from the gibberish of socialist gibberish, inclusiveness, involving the mass ownership of horses, is the way forward for the sport in this country, as has already been demonstrated in Australia. The potential can be judged through the prism of racecourse attendance — horse racing is still firmly among the top three most attended sports in the UK.

One out of every 254 inhabitants of the Lower Dungeon owns a share of a racehorse. To handle the logistics of interacting with so many participants, syndicate managers have developed technology systems to keep their shareholders engaged and informed. These managers are needed because, in general, trainers communicate better with their horses than with their owners.

Syndicates and partnerships have been very successful in the UK for decades, but they have almost always been run by people. who were primarily racing enthusiasts. But that has changed.

“We are essentially racing techies, not the other way around,” said Ed Seyfried, gleeful frontman for Old Gold Racing, one of the most ambitious mass-owned businesses in the UK.

In less than 2.5 Old Gold has attracted around 20,000 people to participate in the various horses it manages. That number is growing by about 1,000 a month.

“The other day, it took us just three days to sell 3,000 shares of a new horse [a non-racing two-year-old Jersey Rocs],” Seyfried confirmed.

Old Gold trains about 20 horses. But for a business to work, it needs to reach a critical mass and retain shareholders. So far, the plan seems to be working. Customer churn is only 10%, which is good compared to other companies.

MyRacehorse is another big tech player in the market. It was conceived in the United States by Michael Behrens, who had a background in advertising and technology. MyRacehorse sold shares of Authentic for $260 before he won the Kentucky Derby and the Breeders' Cup Classic in 2020.

MyRacehorse is believed to have about 100,000 registered users in the US and 10,000 in the UK, where it has just launched. Her best horse in Europe is Ma Belle Artiste, trained by Joseph O'Brien, a two-time winner who last competed in the Sandringham Handicap at Royal Ascot.

In order for this concept to make the shareholders feel really «inside the tent», it is necessary to attract progressive trainers who take the time to provide regular access and information about their horses.

Racetracks will also have to decide whether mass ownership is an opportunity or a threat. On the one hand, dealing with hundreds of owners of one horse is a logistical nightmare that can compromise the pleasure of other owners. But ultimately, it's the racetracks that benefit from more seat bums.

Stronach Racecourses in the US and Ascot have shown they can embrace the concept, but it's a bigger puzzle for the smaller and less well off. sponsored tracks.

Coral also agreed to offer players the opportunity to own a racehorse. The bookmaker has invested heavily in its Coral Racing Club, which now has over 50,000 members. While the free club may be a different model than the microproperty model, it's good to see a major sportsbook acknowledging that people who bet on horse racing want to be closer to the horses and feel more involved in what's going on behind the scenes.

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