Syndicate growth is eminently achievable

The role of syndicates, syndication and fractional ownership is increasingly important for racing when looking to attract a bigger and more active fan-base to the sport.

It is easy to see why the ROA and indeed the whole of racing should share this view. Syndicates provide an affordable gateway into ownership and put like-minded people together where they can share enjoyment at racecourses and racing stables.

Syndication of horses provides the sport with a natural marketing stimulus. Today’s world of websites and social media make the conveyance of information, pictures and videos a perfect platform for the racing syndicate, raising the profile of racing in a way that was undreamt of even 20 years ago.

While shared ownership is not just about newcomers – a significant proportion of sole owners continue to have horses in syndicates – those who start by owning a small percentage of a horse are often sufficiently inspired to get into full ownership. It is a point that underlines the importance of giving first-time owners a favourable impression.

The fact that 40% of horses now in training have some form of shared ownership shows how important it is to the economics of the sport and how much pressure there is on many trainers to
make the whole ownership experience work.

If syndication in racing is to realise its full potential, we in the sport, and particularly those of us charged with looking after the interests of owners, must do everything possible to allow
the expectations of syndicate members to be met. This includes giving access to the paddock and owner/trainer facilities.

Of course, this is not always practical because many racecourses have inadequate bars and restaurants for large numbers and there are often safety issues in trying to squeeze a lot of people into the paddock, especially when there are large fields.

But most racecourses now acknowledge that syndicates are a pivotal part of racing and to spurn them might result in syndicate members voting with their feet and going elsewhere. And no racecourse wants to end up with small fields, with all the resultant disadvantages.

One of the most important areas in the growth of syndication is to ensure the regulation surrounding this form of ownership is sufficiently robust to provide protection and confidence for the participants. Few of us need reminding of the recent high-profile case in Ireland involving allegations of overselling of shares, with a fallout that left syndicate members in a very unhappy place.

Although, since 2017, all syndicates registered with the BHA must confirm their compliance with a BHA Code of Conduct, we have now surely reached the point where there should be a mandatory licensing of syndicate managers. 

A system underpinned by licence would bring enhanced regulation, ensuring syndicates had credibility while giving confidence to all those who participate. Conversely, it might also run the risk of discouraging some of the existing syndicates and reducing the involvement of those very people we are trying to encourage.

Licensing of syndicate managers is a natural consequence of the growth of syndication and, through the Industry Ownership Strategy, much progress has been made in working on an appropriate model. In the shorter term, a well-publicised accreditation system, whereby syndicates receive a form of kite mark to acknowledge their excellence within the field, should be introduced without delay.

It is not always possible to ‘magic up’ winners for people who join syndicates, but it is possible to make them feel appreciated and give them every chance of enjoying the ride. It is also possible to ensure that their ownership experience is enhanced by good communication and a crystal-clear picture of the finances of their syndicate.

These are the fundamentals. If we get them right, then we can look forward to making this one of racing’s biggest growth areas.