Buying a racehorse with others – Choosing the right legal structure

Joint ownership of a racehorse is an ideal solution for sharing the costs and excitement of racing. It can take the form of simple joint ownership or a structure governed by the horse racing regulations. Inscio Avocats helps you choose the right structure for your project, secure relations between co-owners and anticipate legal and tax risks.

It is important to differentiate between the collective ownership of sport horses and racehorses that do not race (breeding horses, foals), which is not subject to any specific regulations, and the collective ownership of racehorses, which is subject to horse racing regulations.

Collective ownership governed by the French harness racing regulations

The harness racing Code provides for two forms of collective ownership for trotting racehorses: owners’ associations and owners’ syndicates.

Owners’ associations:

  • Limited to 10 members
  • Mandatory contract: share, distribution of winnings and expenses, duration, termination
  • Appointment of a managing partner (often the trainer)
  • Individual approval of each member by the SETF

The owners’ syndicate for:

  • Approved stallion or mare that has won a Group I or II race
  • Up to 45 shareholders
  • Mandatory approval for each member

Collective ownership governed by the Code des courses au galop

The flat and jumping regulations provides for several forms of collective ownership, which must be validated and approved by the France Galop stewards.

Ownership status allows for the allocation of colours.

The association:

  • Limited to 20 members, all of whom must be individually approved in advance by France Galop stewards
  • Governed by an association contract registered with France Galop

Approved syndicate:

  • Limited to a maximum of 40 shares;
  • Shareholders must be approved in advance and individually by France Galop commissioners

Racing syndicates

French regulations govern collective ownership of racehorses through specific structures, in particular racing syndicates.

These structures must be approved by France Galop. Main shareholders must also be individually approved in accordance with the owner approval procedure.

Once the syndicate has been formed and registered with the commercial court registry, a complete file must be sent to France Galop. This file includes the articles of association, the company’s bank details and information about the partners.

The company’s articles of association must include clauses relating to racing regulations. Without these clauses, the company will not be compliant and cannot be approved.