Trojan Racing Stable

What is Trojan Racing Stable? We are a Thoroughbred racing partnership. We assemble Members participating within a Limited Liability Company, sharing in the ownership of Thoroughbred racehorses.

Why are Trojan Racing Stable partnerships organized as Limited Liability Companies?

It benefits the individual Member. As an LLC, the liability is limited for each individual Member, and  the individual investing Member's assets are protected. Moreover, the LLC agreement prevents "double-taxation." Since we are not a corporation, we avoid a tax at the corporate level, along with a dividend tax at the shareholder level.

Why should I choose Trojan Racing Stable?

We have a proven track record of success. Moreover, we have surrounded and positioned ourselves around industry experts. Because of our structure it provides the investing Member the best opportunity for success and entertainment. 

Trojan Racing Stable (TRS) and their in-house bloodstock agents have over 50 combined years of racing experience. We stay updated on pedigree first crop sires recording the success of their progeny. Therefore, TRS accurately projects the success of future runners according to our detailed record keeping and pedigree analysis.

Some of our greatest horses have yielded returns of 2000%, 200%, and 150% profit not only within racing, but the "aftermarket" arena of the sales ring. 

For example, we bred one of our mares by RUNAWAY GROOM (champion sire who sired 1994 Breeder’s Cup Sprint Champion CHEROKEE RUN) to SIR CAT. Our SIR CAT filly placed within the top ten out of 300 horses for one of the fastest "works" at the Barretts Two-year-Olds sale. Under a hand-ride with no whip she worked a thundering 1/8 mile in 10.1 seconds. Moreover, our very first foal out of our RUNAWAY GROOM mare was a proven winner.

Champion RUNAWAY GROOM

Our contacts within the Thoroughbred industry are second to none, assuring us a high probability of success. We have worked extremely hard over the past several decades developing and cultivating industry contacts all across the country. Our paramount goal at TRS is to share this success with our Members and produce winners.

Many of the partnerships are formed at various times of the year revolving around the two-year-old sales. Some of the best sales are in February, March, April, and May. We may also decide to buy horses privately at any time of the year.

This varies depending upon the amount of units purchased. Preferably, we like to keep the partnerships at a relatively small number, between 5-10 Members. Therefore, the cost/reward ratio is divided upon an economic level, thus relegating expenses at reasonable costs, while maximizing the rewards.

We also offer the availability for two-person partnerships. It just depends upon the comfort level of the individual Member and the magnitude that they are willing to purchase within their budget. Just like any type of investment, the greater the cost, the greater the reward. TRS is a very flexible racing partnership accommodating our Members upon a variety of levels.

Diversification is always an important factor to consider. Thoroughbred racing can be a volatile game. We employ expertise, industry contacts, and decades of experience to minimize volatility, thus maximizing your rewards. 

Why should I join a Trojan Racing Stable syndicate? Isn’t it just easier to race my own horse?

Racing as a syndicate, on a Membership level, is definitely more cost effective. Running your own racehorse may become very expensive, even within the short term. Our syndicate is the most sensible because of our unique cost/reward ratio, which minimizes investor risk and increases the probability for enhanced profit margins.

Price varies depending upon the racehorses we purchase. Units are sold at a minimum of $5,000.  Each individual Member is responsible for their percentage of the first year's expenses, plus their sharing ratio of the capital contribution. 

All units are purchased within increments of $5,000. Minimum purchase is one unit or $5,000. It is strongly recommended that you purchase more than two units or multiple units to increase your cost/reward ratio. The dollar amount purchased is equivalent to owning units. Two units equal $10,000, three units equal $15,000 etc.

The initial purchase costs includes the capital contribution for the racehorses, associated sales tax, first year of training fees, veterinary care, blacksmith, transportation bills, management fee, and mortality insurance.

What happens if an individual Member wants to leave the partnership?

Any Member wishing to sell their units must be prepared to find their own buyer. We do not offer any aftermarket Memberships at Trojan Racing Stable. Every Member should be prepared to remain involved for the duration of the partnership. Every Member agrees and signs, the notarized Operating Agreement of the LLC, stipulating their investment and to remain within the partnership until the racehorses are sold or their racing career has ended. Every LLC formed, will cover in detail, the operating agreement, formation, governance, accounting practices, Membership responsibilities, indemnification, and termination of the racing career for each specific horse.

Right of First Refusal

If a Member decides to sell their units of the racehorses, then the current Members within the partnership, will have the "first" right/opportunity to purchase that particular Member's units. A third party independent appraiser will determine the "fair market" value of the racehorses. Once the value is determined, then according to the exiting Member's sharing ratio, the appraised value will determine the sale price of their particular units. 

Most partnerships last 1-3 years for racehorses purchased out of the two-year-old- in training sales. After a horse is sold, any outstanding expenses, along with TRS sale’s commission, are deducted from the gross sale’s price. The remaining "Company" assets are distributed according to each Member’s sharing ratio.

What type of insurance is offered

for my racehorse?

Mortality insurance. The mortality insurance ranges anywhere from 4-5% of the horse’s purchase price. It is up to the individual Member if they want to purchase mortality insurance to protect their units of the racehorse.

Absolutely. We offer a fantastic incentive and referral program. If any Member refers a potentially new Member to Trojan Racing Stable and we sign that new Member to a partnership, the $10.00/day management fee is waived per the next month’s bill. Moreover, we will also deduct an additional $200.00, which makes for a savings of $500.00.

Additionally, if you refer to Trojan Racing Stable, 5 new Members, and we sign them for new partnerships, TRS will waive one year's management fee because of your referrals. TRS' goals are to always attract new Members. The management fee is strictly a service fee applied to cover daily operating costs. We save our investing Members money with very low over-head costs.  

Why is this a tremendous incentive? Most of the income earned at TRS is earned off of the percentage of the purse money and the percentage of the purchasing commission of new racehorse acquisitions. The purchasing commissions are within 20% margins and are on a sliding scale regarding the sale price. Therefore, it forces TRS to acquire the best value for our investing Members.  

How does Trojan Racing Stable earn an income off of the purse percentage?

Purse structure:

5% up to $49,000.00                 

10% = $50,000.00- $499,000.00

15% = 500,000.00 and above.

TRS sales commission: 10% up to $99,000.00 and 15% for every horse sold over $100,000.00.

Management fee = $10.00/day (defrayed towards TRS operating costs).

What types of financial reports do I receive?

By March 15 of the first year, and each year afterwards, we send out a K-1 tax form to every Member. 

At the end of each quarter, we will e-mail (regular mail if requested) a copy of the quarter’s expenses regarding training, veterinary, blacksmith, entry fees, and transportation bills. All of these separate bills are organized and documented for your convenience, itemizing the quarter’s expenses.

How soon do I  receive my percentage of the purse earnings?

Once the racehorse either wins or finishes within the top five a check is distributed from the paymaster of purses. We contact the paymaster immediately following the race. Once the check is mailed to TRS we allocate the percentages  according to each Member's sharing ratio and units. Expect to receive your sharing ratio percentage, a financial statement explaining your percentage of the purse money earned, within 30 days of the race.

The winning horse receives 60% of the purse. Second place receives 20% Third place receives 10% Fourth place receives 6% and Fifth place receives 4%. Any racehorse running after fifth receives a flat fee depending upon the value of the race.

These are whole number percentages. Sometimes the race track may distribute percentages such as 58.5% to the winner 19% to second, third 9.5% etc... Most of the time the top five percentages are distributed in increments of 60%-20%-10%-6%-4%.

We encourage every owner to obtain an owner’s license. Once you receive your owner’s license you are entitled to a number of privileges. Members are welcomed to visit their racehorses on the backside at the trainer’s barn in the morning. Also, there is free-parking and club house admission for you, your family, and friends.

On race day, you are welcomed to visit your horse in the paddock, watch your trainer saddle your champion, meet the jockey, and listen one on one to the instructions that are given from the trainer to the rider.

This is a very exciting day and is the whole purpose of your Membership; the opportunity to watch your horse race. If a Trojan Racing Stable racehorse is fortunate enough to reach the wire first and win, you will enjoy the thrill and excitement of getting your picture taken in the winner’s circle with the trainer, horse, jockey, and any other TRS Members. Several weeks after the race, each Member within that particular partnership receives their copy of the winner’s circle picture, along with a copy of the tape, so you may play it over and over for your friends and family.

Most of our racing is in California so you will need a California license. The cost is $150.00 and is valid for three years.

If we have an exceptional horse, Managing Members, Tom Specht and David Ingordo, in conjunction with the trainer’s recommendation, will determine if we run outside of California.  

For example, if we run in Kentucky or New York, the cost is $100.00 for a KY license and $200.00 for a NY license.

The CA. license is valid at any race track within the state and provides free simulcast admission, free parking, free clubhouse admission (for your family and a limited # of friends) and free admission at any simulcast facility across the state.

Entries are taken within 48 hours of the race. Moreover, under most circumstances we will have a general idea, approximately 1-2 weeks ahead of time. 

Only if the racehorses have not previously raced. If the horses have not run a race (i.e. first time starter), then the Members will have the opportunity to name each horse.

The Member possessing the most units will have the most votes. Each unit is equivalent to one vote regarding the naming of the horse. The names will be determined by a majority vote if there is an equal number of Membership units. 

Trojan Racing Stable is the presiding Manager of all racing, breeding, selling, pin-hooking, and any other horse related interests concerning TRS runners.

We handle all of the day to day operations, trainer selections, racing decisions, and campaigns of our horses. If we decide that a certain horse is not meeting profitability standards, then we will address this matter with the Members within their respective LLC partnership.

At this point, TRS will make a recommendation to the Members, whether we decide to continue with this horse, or make arrangements for a sale.

Once this decision is agreed upon by the Members, then a vote by the Members will determine the outcome.

The results of the voting will be determined by number of units that were purchased by each individual Member. The more units that were purchased, the more weight that particular Members' vote will carry. If there is an equal amount of units purchased between the Members, then a majority vote will determine the outcome.

If it’s voted upon by the Members to sell the racehorse, then TRS will handle all of the decisions regarding the sale. Please keep in mind that selling the racehorse or any of the racehorses does not guarantee a recovery of losses.

Definitely! We encourage all Members to attend any auction with a TRS Managing Member. We believe that this is a fantastic learning experience for all Members, providing an opportunity to observe the sale and purchase of future TRS racehorses.

Our trainers operate public stables. Therefore, they have other clients as well. We encourage all of our Members to visit the trainer at any time. However, to prevent an inundation at the barn, or the training farm, we do ask that you contact a TRS representative before you visit, so we may schedule your visit accordingly.