I. Executive Summary
1. Dutchess Views Racing Stable – Dutchess Views Racing Stable is a horse racing management company that provides a unique, exciting, and affordable entry point into thoroughbred racing. Members in Dutchess Views Racing Stable enjoy full participation in the ownership experience and are offered the opportunity to spread their risk over multiple horses. Our clients choose Dutchess Views Racing Stable because they want to experience the excitement and prestige of a great sport with a first class organization.
2. Group Ownership – In recent years, many investors have found group ownership the most attractive vehicle for participating in the Thoroughbred industry. Thoroughbred investments involve risk and the group ownership format spreads that risk among a group of investors. A group of owners pooling their assets will be able to afford a higher level of quality care, training, and management than an individual may be able to afford for his or her own account.
3. New York Program – New York breds can participate in one of the most lucrative state bred programs in the United States. After nearly ten years of work, the New York program is poised for tremendous growth as the VLT project at Aqueduct Racetrack began operations in 2011. Purses dramatically increased once the VLTs were fully operational. Total money generated by the VLTs is estimated to be $900 million from the 5000 machines. II. Why Dutchess Views Racing Stable?1. Years of Experience – Dutchess Views Racing Stable is managed by Dutchess Views Farm, Inc. (www.dutchessviewsfarm.com). Dutchess Views Farm is one of the premier farms in New York State, currently standing two stallions and boarding over 100 horses on its state of the art farm in Pine Plains, New York. Dutchess Views Farm will foal up to 70 mares a year and has bred as many as one out of every seven mares bred in New York during one breeding season. Numerous good New York Bred foals have been foaled and raised by Dutchess Views Farm include: home-bred 2014 stakes winner MarriedtotheMusic, homebred stakes winner Shane Roars, multiple stakes winning 2YO and eventually named Champion New York Bred 2YO filly Final Mesa, stakes winner and stakes placed Meese Rocks, stakes winner Gitchee Goomie, multiple stakes winner Board Eligible, multiple stakes winner Lorccan, stakes winner Minnie Punt, stakes placed Bundle of Roses, stakes placed Palmetto Bluffs, stakes placed One Tough Belle, stakes placed Gone Goodbye, stakes placed Nunizionic, home-bred $300,000 winner Six Flings, etc. The vast majority of the foals born and raised on Dutchess Views have been by stallions that stand at Dutchess Views. Although modestly priced, these stallions have produced some of the very best thoroughbred horses in the United States The principals of Dutchess Views Farm, Michael Lischin and Anya Sheckley, have a combined 40 plus years of experience in the thoroughbred industry. They live on the farm and manage the day to day running of the farm. In addition, Michael is a well-known attorney specializing in Equine Law (see – www.aglawny.com) and Anya owns and manages a full service Property and Casualty Insurance Agency, specializing in equine and farm coverage (see – www.hammertowninsurance.com). 2. Minimal Investment in Diversified Group of Horses – Dutchess Views Farm has the ability to put together a good group of horses that Dutchess Views Farm breeds from its own mares each year. These horses are all registered New York Breds. By offering 25% interests in this group of horses, not only will the initial investment be low, but all future costs will be shared. The structure enables the participants to have a better opportunity to own a piece of a top racing prospect.
3. Top Notch Communication and Client Involvement – Dutchess Views Farm and its principals have been in the thoroughbred industry for many years and have had well over 100 active current clients during that time. As such, Dutchess Views Farm is very well structured to communicate with all participants via telephone, email, and mail. Dutchess Views Farm also welcomes visits to the farm in Pine Plains, New York where participants can see the breeding, foaling, and lay up facilities and horses first hand. At the racetrack, Dutchess Views Farm has long established contacts with trainers, agents, and racetrack management. Dutchess Views Farm will be able to make the racing experience an enjoyable and educational one. III. Member Privileges
Dutchess Views Racing Stable members enjoy these privileges:
- Members are welcome at the horse’s barn or at Dutchess Views Farm at any time to see their horses and meet the people who are valued contributors to the overall racing team.
- Members can attend early morning workouts and training
- When a Dutchess Views Racing Stable horse crosses the finish line first, members have the honor of having their picture taken in the winner’s circle. Everyone is welcome to join the Dutchess Views table in the clubhouse
- Members receive owner’s box seats and admission passes for friends and other racing enthusiasts on race day. Special privileges extended for participation in stakes races.
- Paddock privileges so members can be there when the horses are saddled and get ready for the races.
- Members receive owners parking privileges.
- Members will be licensed by the New York State Racing and Wagering Board.
IV. How it Works
- All members share in income and expenses in proportion to their capital investment.
- Enough capital is raised at the beginning of the venture to cover expenses for about one year.
- During the term of the venture, if there is an excess in the racing account over what is projected to maintain a four month expense reservoir, the excess will be distributed to the members
- Any home-bred foals are valued at the cost to raise them until the end of their yearling year. Dutchess Views Racing Stable hopes to make its profits through its breeders’ awards and Racing Managers fee.
- The Racing Manager is not paid anything until the horses start to earn purse winnings. At that time, the Racing Manager shall receive a fee equal to 5% of the purse earned by each horse.
- The initial price per horse shall remain at that price for 6 months. Thereafter during the course of their training, the price might fluctuate and new members are not guaranteed the same price
- Typically, our trainers will make racing decisions. Our trainers are experts at their job and have the best knowledge regarding when and where to run their horses. Of course, the Racing Manager will have constant contact with the trainers and have input in all racing decisions.
- Most races are free to enter. There is a jockey fee which can vary from track to track and a pony to post fee of $25. Stakes races sometimes have an entry fee.
- You will receive a quarterly financial statement and an invoice if retained purse money is not expected to cover the next quarter’s expenses. Before March 15th of any calendar year, you will receive a K-1 statement for your tax return.
V. Frequently Asked Questions 1. What experience does Dutchess Views Racing Stable provide? a. See our websites to get a feel for the wealth of experience of our owners, staff, and affiliated companies: www.dutchessviewsfarm.com www.aglawny.com www.hammertowninsurance.com
2. How are the horses selected? a. The horses in this group are all foals that Dutchess Views Farm, Inc. foaled or will purchase
3. How much does a horse cost? a. Dutchess Views Farm, Inc.’s cost to breed a mare, produce a foal, and raise that foal to the end of its yearling year is
approximately $12,000 excluding stud fees
4. What are monthly expenses? a. A thoroughbred costs about $40,000 a year to keep in training at Belmont, Aqueduct, and Saratoga. The cost is
about $24,000 a year at the Finger Lakes.
5. Should I buy a large piece of one horse or smaller pieces of several horses? a. Just like the stock market, the risk of a thoroughbred ownership is lessened with diversification. We recommend
purchasing smaller shares of more horses than a large share of a single thoroughbred.
6. Are there any tax advantages to owning a racehorse? a. Yes. Recent tax law changes have made Thoroughbred ownership more attractive than ever. We recommend that
you discuss the benefits with your tax advisor.
7. Are the horses insured? a. Yes. Dutchess Views Racing Stable does provide insurance for your horses.
8. How are the purses distributed? a. Dutchess Views Racing Stable members are setup with quarterly statements. Purses are posted to the account and
will be reflected in the itemized statement for the quarter in which they were earned.
9. Does Dutchess Views Racing Stable charge a monthly management fee? a. No. Dutchess Views Racing Stable earns 5% from purses won to cover their administrative costs, underlining
Dutchess Views Racing Stable’s goal of earning purse money.
10. When will the horses run? a. It is possible that the horse will see its first race sometime after June of its 2YO year. In some cases it may take
longer to bring the horse along. We cannot guarantee how quickly a horse will be ready to race. We understand
that the sooner a horse gets to the races, the sooner it has an opportunity to produce earnings.
11. At which tracks do the horses normally race? a. Our stable is based in New York. Therefore, our horses primarily run on the New York circuits at Saratoga,
Belmont, Aqueduct, and the Finger Lakes.
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