A racehorse syndicator is a person or business entity who has chosen to either buy or lease a racehorse and then sell shares to consumers on a profit or non-profit basis.
A syndicatee is a person who has chosen to purchase a share in accordance with the terms and conditions prescribed by the syndicator.
A racing club is normally an entity operating on a non-profit or commercial basis. The general principle is that a racing club invites people to join the fun and excitement of being associated with one or more racehorses, for a fixed period of time. The club member does not normally own or lease any part of the racehorse but may possibly share some of the prize money won by the horse(s).
Because racehorses are not machines, there is no guarantee that even if a horse has already entered training, that it will actually make it to the races, let alone win a race or any place prize money. In other words it is essential that a syndicatee measures his/her expectations from the outset.
In 2015, the BHA (British Horseracing Authority) launched a Strategy for Growth, with racehorse syndication at the forefront of its targets, whilst accepting that "if growth is to be sustainable, it needs to be built on solid foundations."
The RSACA role is to assist the BHA in the development of, and maintenance of, this strategy. This includes the provision of valuable advice for consumers and help for businesses joining the syndicate industry.
BEST NEWS OF 2016
In December 2016, the BHA made the following announcement as part of a three-year business plan:
"In 2017, we will introduce a BHA Code of Conduct for syndicates and a registration process for individuals managing syndicates.
1. Publish and implement a Code of Conduct for syndicates and a new, simplified registration structure.
2. Monitor Code of Conduct compliance."