Shanklin: Limited partnerships, young entrepreneurs bode well for future of racing

by | 12.31.2011 | 7:51am
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Barry Irwin with Animal Kingdom, jockey John Velazquez after winning the Kentucky Derby Barry Irwin with Animal Kingdom, jockey John Velazquez after winning the Kentucky Derby

Looking back on 2011 in racing, Horse Racing Business writer Bill Shanklin identifies two positives that bode well for horse racing’s future, both involving racehorse ownership. One is the emergence of limited partnerships as a legitimate means for owning horses racing at the top levels, and the second is the entrance into the sport by high profile American business entrepreneurs.

The victory by Team Valor International’s Animal Kingdom, winner of the Kentucky Derby, showed that a diverse group of owners can pool relatively meager resources and have a chance to compete with the best.


“As a result of the partnership structure of ownership, a collection of everyday people–whose names will never register with racing historians–possess what eluded some of the most esteemed names and biggest spenders in racing—a win in the Kentucky Derby or Breeders’ Cup,” Shanklin writes.

The second trend is embodied by such celebrities as Mike Repole (Vitaminwater), Kevin Plank (Under Armour clothing) and Bobby Flay (celebrity chef) who have become active in racing, bringing awareness of the sport to a wider audience.

“Racing has shown it has appeal for eminently successful younger entrepreneurs who know how to create a brand.”

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  • horse

    Name the rank and file TB partnerships that have returned a positive cash flow to the partners for three of the past five years

    • http://www.winnerscirclepartners.com/ Stewart

      Since financial return on investment should not be a reason to get involved in racing, expecting an annual financial return is not realistic.  But since I am in the industry, I would be interested to hear who you are referring to.

    • Rw

      If you are in a partnership for a ROI, you are in it for the wrong reason.  Cot Campbell tells potential investors that they could make money but probably won’t.  It is a sporting proposition with which he has been greatly successful in introducing new owners.

    • Steve Zorn

      All of us in the partnership business (at least all of us who are honest) warn our prospective partners that they’re unlikely to make a profit. The question should be: which partnerships allow partners to benefit if they’re lucky enough to get a good horse.

  • horse

    Name the rank and file TB partnerships that have returned a positive cash flow to the partners for three of the past five years

  • http://www.winnerscirclepartners.com/ Stewart

    Since financial return on investment should not be a reason to get involved in racing, expecting an annual financial return is not realistic.  But since I am in the industry, I would be interested to hear who you are referring to.

  • Rw

    If you are in a partnership for a ROI, you are in it for the wrong reason.  Cot Campbell tells potential investors that they could make money but probably won’t.  It is a sporting proposition with which he has been greatly successful in introducing new owners.

  • Steve Zorn

    All of us in the partnership business (at least all of us who are honest) warn our prospective partners that they’re unlikely to make a profit. The question should be: which partnerships allow partners to benefit if they’re lucky enough to get a good horse.

  • horse

    All who have commented advance excellent reasons why Partnership Arrangements should be avoided at all costs.  So, let us examine the legislation that provides tax loopholes for those that participate.  Additional comments, anyone?

  • horse

    All who have commented advance excellent reasons why Partnership Arrangements should be avoided at all costs.  So, let us examine the legislation that provides tax loopholes for those that participate.  Additional comments, anyone?

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