Regulation

All Syndicates registered on or after May 1 2021 must ensure they comply with the BHA’s Code of Conduct. All Syndicates registered prior to this date must ensure they are in compliance with the previous Code of Conduct, and that their contracts are updated to reflect this new code no later than April 30, 2022.

In promoting their ownership it is important that Syndicators and Club Managers accurately and clearly portray their offering to prospective members. This can mean several things in practice, including:

• ensuring that the Syndicate or Racing Club Terms and Conditions cover all terms required by the BHA’s Codes of Conduct, they are transparent, written in plain language and are easily accessible to any prospective member
• any advertising linked with a Syndicate or Racing Club must also be aligned with the terms outlined in the respective Codes of Conduct and the BHA’s ownership definitions. To elaborate, under no circumstances should involvement in a Syndicate or Racing Club be advertised as an investment and, depending on the structure of the entity certain language should be used in any promotion.

For example, the BHA defines a Racing Club as an entertainment associated with racehorses, where the Members acquire no ownership rights to, or lease an interest in, any racehorses. Considering this, promotion must not portray Racing Club membership as bestowing ownership, part-ownership or leased ownership on any individual. As such, use of the word 'owner' or ‘ownership’ should be avoided. Instead Racing Clubs should be promoted based on the benefits afforded to members and what their subscription fee grants such as regular updates from the trainer, days at the yard, the chance to watch the Club’s horse(s) run as well as potentially receiving a split of any prize-money won.

It is important to remember that even if prize-money won by the Racing Club’s horse(s) may be shared amongst Members, the sale of a membership should not be described as purchasing a 'share in a horse'. The term 'share’ implies the member is securing ownership of, or a legal leasehold interest in, a racehorse and should, therefore, not be used when promoting a Racing Club.

With regard to Syndicates, the BHA defines them as a form of shared ownership where the Syndicate Members own, or lease, an interest in racehorses. A such, the member is purchasing a share in a horse and any promotion should be aligned with that. It is important, though, that any advert details what type of share the member is buying i.e. are they purchasing a leasehold share for a defined period of time or, as is more common, does their interest include the bloodstock too.  

Racing Club / Syndicate Manager Licencing – Guidance Notes

A licence is required for any person or company with ultimate responsibility for the finances, promotion and/or management of a Syndicate or Racing Club that advertises publicly or for which they are paid to administer.

Applications for the license will be considered from any person or corporate body wishing to act as a Syndicator or Racing Club Manager - definitions of both are provided:

SYNDICATOR: Any person or corporate body, who has ultimate responsibility for the finances, promotion and/or management of a Syndicate.

RACING CLUB MANAGER: Any person or corporate body, who has ultimate responsibility for the finances, promotion and/or management of a Racing Club.

Applicants are required to demonstrate or confirm that:

1. They have the competence and capability to manage and operate a Syndicate/Racing Club
2. They understand and comply with all relevant requirements relating to the promotion and advertisement of Syndicates/Racing Clubs
3. They understand and comply with the Rules of Racing, specifically as they relate to Syndicates and Racing Clubs
4. The necessary financial resources are available to the Syndicate/Racing Club
5. They are otherwise in all the circumstances suitable to hold a Licence (i.e. that they are ‘fit and proper’)

Applicants WHO HAVE managed Syndicates/Racing Clubs for three or more years will need to ensure they have access to:

1. Completion certificate from the Licence to manage Syndicates and Racing Clubs e-learning

2. A copy of a template Syndicate/Racing Club contract for each proposed business

3. The most recent accounts and/or balance sheets for your Syndicate/Racing Club business(s)

Applicants WHO HAVE NOT managed Syndicates/Racing Clubs for three or more years will need to ensure they have access to:

1. Completion certificate from the Licence to manage Syndicates and Racing Clubs e-learning

2. A copy of a template Syndicate/Racing Club contract for each proposed business

3. A copy of your business plan for the Syndicate/Racing Club business (including a projected cash flow for the next 12 months as a minimum)

4. A financial reference from your accountant or bank or a redacted image from your business account confirming a minimum of £15,000 in available capital

BHA Supporting Documents:
Full Guidance Notes can be found here
FAQs document can be found here
Shared Ownership Manual can be found here

Syndicates play a pivotal role in opening up racehorse ownership to a much wider audience and form a central part of the plan to grow the number of owners in the coming years. They can take various forms ranging from professionally managed syndicates to a much more informal arrangement involving a group of friends.

Whatever the type of syndicate, the ROA always strongly recommends that its members sign up to a syndicate agreement to ensure they are all clear on aspects of costs, factional interests, duration of the syndicate, liability and management. Indeed, it is our experience that disputes are much more likely to arise when no agreement is in place.

To assist those in syndicates, the ROA has introduced a set of template agreements. In the Member's Area, ROA members can access editable Word Document versions of the templates which can then be adapted to meet a syndicate’s requirements. Here you can find PDF versions.

Two alternative templates are available; one deals with an arrangement involving a one-off payment and the other an initial payment followed by monthly contributions. These templates have been developed by Charles Braithwaite from Collyer Bristow Solicitors, and provide expert guidance as to what a syndicate agreement should cover.

 ROA Syndicate Agreement Template (Multiple Horses) (002).pdf

 ROA Syndicate Agreement Template (One Horse) (002).pdf

 ROA Racing Club Agreement Template (002).pdf

Editable agreements are available in the ROA Members Area.

For further details on Racing Solicitors, please visit our Racing Solicitors listing in the Disputes section here.