Virginia Horse or Stallion Syndication Agreement

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Multi-State
Control #:
US-00039DR
Format:
Word; 
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Description

Stallion syndications are contractual agreements where multiple parties combine their financial resources to purchase a stallion for breeding purposes. Each contributor or "owner" owns a "fractional interest" in the stallion, typically entitling them to one breeding right per breeding season. The farm or individual syndicating the stallion will generally retain multiple fractional interests. The arrangement provides for lowered costs and a more diverse breeding for the stallion.

This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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  • Preview Horse or Stallion Syndication Agreement
  • Preview Horse or Stallion Syndication Agreement
  • Preview Horse or Stallion Syndication Agreement
  • Preview Horse or Stallion Syndication Agreement
  • Preview Horse or Stallion Syndication Agreement
  • Preview Horse or Stallion Syndication Agreement

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FAQ

Stallion syndications are contractual agreements where multiple parties combine their financial resources to purchase a stallion for breeding purposes. Each contributor or owner owns a fractional interest in the stallion, typically entitling them to one breeding right per breeding season.

Horse syndication is now the most common way for new owners to get involved in racehorse ownership. A licensed syndicator will sell shares in horses they own, with individuals buying different portions of that horse (2.5%, 5%, or 10% shares being the most popular).

: an uncastrated male horse : a male horse kept for breeding also : a male animal (such as a dog or a sheep) kept primarily as a stud.

Typically, a share in a stallion syndicate entitles the share owner certain breeding rights to the stallion; principally, the right to breed to the stallion without paying stud fees. Modern stallion syndicates offer more options.

A syndicate allows multiple people to purchase equal shares in a horse which cuts ownership costs, allowing more people to take part in the ownership. For example, five people decide to form a group to purchase 5% in a racehorse. Each member owns 1% of the horse and also 1% of the horse's upkeep during its career.

Racing stallions, or male horses of breeding age, earn a stud fee for each broodmare (female horse) they breed with. The fees vary hugely but the very best stallions, with a winning history on the racetrack, can earn more than $100,000 each time.

A Syndicator makes their money by putting a margin on the shares or charging an on-going management fee. This occurs when they sell the shares and this information must be declared within their Product Disclosure Statement (PDS). By being transparent they ensure integrity.

Stallion breeding services at the Equine Reproduction Laboratory (ERL) are designed to allow owners the use of their stallion's semen in a fresh, cooled-shipped or frozen semen breeding program. Services are provided on an outpatient (trailer-in) or inpatient basis (stallions housed at the ERL).

Typically, a share in a stallion syndicate entitles the share owner certain breeding rights to the stallion; principally, the right to breed to the stallion without paying stud fees. Modern stallion syndicates offer more options.

Horse racing syndicates are actually often more affordable than buying a horse outright. This is because you don't have to pay for the complete upkeep of the horse yourself. Many owners will also tell you that the price you pay for a share in a racing horse is well worth the perks.

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Virginia Horse or Stallion Syndication Agreement