There really aren't any "rules" so to speak. Everyone structures their deals differently.
I spoke at a new owners seminar once and I prepared a handout for new owners, prospective new owners, etc. I'll try and find it for those who are interested. Anyway, and AGAIN, as I have said NUMEROUS times -- most of these partnership companies are not in the business of racing horses . . . they are in the business of selling partnership interests. Unless you understand that and how it impacts you, then don't go into a partnership.
The handout I produced had a spreadsheet/grid, but it also did a comparison of the different ways of getting into the game. I don't remember all of them, but I had a Q&A section where I never recommend a partnership company unless you can answer every single one of the following questions "Yes" :
1) are you prepared to lose 100% of your "investment" (and I use that word very loosely)?
2) are you prepared to have to use an "intermediary" or "gate-keeper" in order to get info, find out about your horse, visit the barn area, talk to your trainer, etc.
3) be more of a "passive" and "have no say" partner as opposed to being in the business
Again, I don't remember all of them, but these were a few. Going into a partnership is not the only way to get into the game. Most of them -- Dogwood, WPT, Team Valor, etc. buy yearlings. Long time before you even know if you are in the game so to speak.
There are tons of private partnerships as well -- claiming horses, yearlings, 2yo's in training, etc. You just don't pull the trigger! That's why 90% of the people in this business lose money!
Eric
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