Frequently Asked Questions
Philip Starr Bloodline Services understands that the purchase of a share in a thoroughbred is a commitment that should be carefully considered. Some commonly asked questions together with our answers are outlined below to assist you in your decision.
Are you registered? Yes
Syndicate Promoters are registered with RVL and all have an AFS Dealers License to ensure professionalism and compliance. Philip Starr Bloodline Services is a registered professional syndication service.
Philip Starr, trading as Philip Starr Bloodline Services, is the holder of an Australian Financial Services Licence (No. 235205) with ASIC. The business is a Registered Promoter with Racing Victoria Limited, a member of the Financial Ombudsman Service disputes resolution scheme and carries the compulsory Syndicator’s Investment Manager’s Insurance. The business commenced in May 2001.
What sets your Syndication apart?
Almost all our syndicates start out as a lease, so NO CAPITAL OUTLAY.
Wherever possible a fixed price option to purchase is secured for the entire lease period. The most common exception being fillies retained for future breeding purposes by their owners.
Most offerings come from pedigree matings planned by Philip Starr Bloodline Services after much research has been completed, but some others may have been purchased at yearling sales after passing strict compatibility checks. All horses are subject to veterinary certificates stating suitability for racing.
What if our horse is injured and cannot race?
In the unfortunate case that a horse is injured and cannot race, a veterinary certificate will be sought to confirm that is indeed the situation. Once that is confirmed, the manager will settle any outstanding accounts and the syndicate will be wound up. Remaining funds in the syndicate account will then be distributed to members pro-rata to their shareholding.
What happens if our horse is injured after successfully racing?
A veterinary opinion will be sought outlining the various scenarios and the syndicate will vote on the options pro-rata to their shareholding.
What would be the life of the syndicate?
The original lease is set up for a period of 3 years. If the horse has ability and the syndicate takes up the option to purchase, then the syndicate will go on as long as the majority of members vote to do so. If the horse does not measure up to the required standard, then subject to the syndicate member’s vote, the lease will be terminated as quickly as possible.
Can I see my horse?
Yes. Trainers have designated times for owner’s inspections and a common time is often Sunday mornings prior to lunch. Otherwise we try and match requests with suitable stable / agistment times, by making prior arrangements.
What happens if I want to sell my share/leave the syndicate?
In the case of a leased horse, 1 month’s notice in writing is all that is required. You will then be entitled to your share of syndicate funds (after provision for unpaid accounts). The refund would be pro-rata to your shareholding.
In the case where the syndicate owns the horse and you decide you want to leave the syndicate, if you are the only person that wants to sell your shareholding (or there is a minority of members who want to sell), you will have to find a private buyer for your share (s), though we would try and help out in finding a buyer for you. If the majority of members want to sell the horse, then the horse will go to public auction as a way of dispersing each member’s interest.
What happens to the prizemoney?
In a case where the syndicate owns the horse or the syndicate has no option to buy a leased horse, then prizemoney is distributed as it becomes available. That distribution is allocated pro-rata to your shareholding. In making the previous statement, the manager shall have the sole discretion as to how much funding needs to be left in the account, in order for the syndicate to function properly and be able to meet its commitments.
In the case where the syndicate has a horse on lease with the fixed price option to buy, then the relevant Promoter’s Disclosure Statement will declare that the funds (monthly fees and any prizemoney won by the horse) is to be accumulated, so as to put the syndicate in the position where it has the chance to buy the horse from the syndicate funds. Should the syndicate vote not to buy the horse, then those funds (less a running balance to operate the syndicate properly) will be distributed to members pro-rata to their shareholding.
