RTP Syndicate is a very interesting new release from the Racing to Profit team. It offers the chance to purchase shares in a new race horse, and in theory, profit.
Introduction to RTP Syndicate
It probably won’t come as a surprise that in this line of work, you find yourself becoming a little bit tired with looking at the same thing, week in and week out. Don’t get me wrong, I love nothing more than spreading actual information on what a product or service is about. But I do tend to see a lot of the same sorts of things. As such, when something that is genuinely different or offers a truly unique opportunity. Well, you can bet your bottom dollar that I am interested.
Recently, I received an email from a well known publishing house for tipsters and the like. The link that they sent me was to a syndicate to take partial ownership of a racehorse. Now, I’d normally be sceptical. This sort of thing I have seen before and I will say that… well, they tend to go south quite quickly. People lose a lot of money, and the whole things becomes a bit of a shit show to be really blunt. But RTP Syndicate is a little more interesting to me. This is because it comes courtesy of Racing to Profit. Quite a well known racing publication.
Now, I’ll be honest and upfront and say off the bat that there is going to be some speculation here. The horse that you are buying shares in with RTP Syndicate is still young. There is always a significant amount of risk when it comes to racehorses. But it is also something that can be massively rewarding, both fiscally and in other ways. Honestly, I feel like this is going to be one of the most polarising reviews that I’ve ever written, and I really hope that Racing to Profit won’t mind my opinions. So, let’s get into this.
What Does RTP Syndicate Offer?
Normally when I start out by talking about what is on offer from a product or service, it’s very black and white. It’s a tipster service, it’s a betting system. In the case of RTP Syndicate, I suppose the same is applicable. It is an opportunity to buy shares in a racehorse. But there is so much that comes with this that I don’t really know where to start.
Probably the best place to start is by talking a bit about the horse that Racing to Profit have bought. Now I want to be clear here, I am no equestrian. I mostly like looking at horses from afar and get a little bit nervous around them (I was bitten by a horse as a youngster). As such, it is hard for me to say what exactly you are getting into.
What I will say though is that Josh from Racing to Profit talks very highly about The Plumber (the horse in question). From my admittedly limited research it seems to have a reasonable bloodline, but what is quite interesting here is that it is described as a horse that “could be anything”. Something that comes with interesting connotations.
The horse is being trained by a younger trainer called Amy Murphy. Her experience in horse racing is, as is always the case, well documented. But importantly for you or I as potential investors, she seems to be well regarded in the horse racing world. This is something that I would want to see if I were looking at a syndicate.
There is a lot to be said for what people can achieve when they are looking to make a name for themselves and they are young and hungry. That is something that excites me. I know that there are plenty of people who would always prefer a more established name in… well, anything like this, but that isn’t always the best approach.
So far, so good. But what exactly are you getting from Racing to Profit if you sign up to RTP Syndicate? Well, one of the things that I really like is that the focus is on you as a part owner. I’ve known people who have been in syndicates before and they usually get a call either tapping them up for more money, or a nod if it has a chance before a race so they can get a bet on. Some people end up much worse off.
With RTP Syndicate though, you get access to a host of features that allow you to follow the progress of The Plumber. My understanding in terms of what Racing to Profit is aiming to do is provide you with as close to unfettered access to the training and what is going on as possible. This is exactly the sort of thing that you might expect to be standard, but isn’t always the case.
One of the biggest selling points of any syndicate is the race day experience. Getting to be at the races as an owner lets you get much closer to he action, as well as various other perks. When I spoke to people about being in a syndicate to get some understanding of what RTP Syndicate might be about, this is often cited as one of the best parts.
As well as visiting the track, Racing to Profit also say that they value the “social experience” of owning a horse. This means things like stable visits (aiming to offer that at least twice a year), as well as other race days and hospitality events, as well as building an online community for RTP Syndicate owners.
Something that I do like about RTP Syndicate is that the syndicate is operated on an “annual basis”. This means that you sign up to be a part of it, you are only tied down for a year. If you don’t benefit from being a member of the syndicate, you can leave after that year is up.
How Does RTP Syndicate Work?
RTP Syndicate is a syndicate. And this is, I think, probably the best place to start looking at the nitty gritty of being a member. Depending on which package you sign up for, you will own either 2.5% of The Plumber of 5%. In turn, this allows for you to receive proportional returns on that horse within the year that you are a part owner (or multiple years if you carry it on).
The real question with something like RTP Syndicate is just how well the horse is going to perform. Racing to Profit talks about the fact that some of his siblings have gone on to achieve some success and been rated quite highly. Of course, there is absolutely no guarantees. As you can probably guess just from being a punter, horses aren’t robots. Sometimes they don’t perform, sometimes they do. Sometimes they reach their potential, sometimes they don’t. There will inevitably be a lot of risk here.
This is something that Josh of Racing to Profit is keen to talk about. I do believe that this is a genuine guy who thinks that he has a decent opportunity. He says that he had been tipped off to The Plumber before buying, and that there is potentially something there. But there is a lot of tempering expectations and not representing RTP Syndicate as some sure fire thing where you’re buying into the next Redrum.
As it currently stands, The Plumber has had a few early races where it is yet to win. However, this is a young horse and that is in line with what you’d expect. Rarely are they winners straight out of the gates (pun not intended). Realistically, with a talented young trainer there is always a chance for something. As I have mentioned, The Plumber is referred to as a horse that could be anything.
What is the Initial Investment?
Owning a horse isn’t cheap. And RTP Syndicate is priced in a way that is definitely representative of this. If you want to join at an entry level (a 2.5% stake), you have an initial cost of £349.99. This is a £249.99 capital payment, and a first monthly cost of £99.99 (I actually think Racing to Profit have got their maths a bit wrong, but who wants to split hairs over a penny?). All subsequent months are then billed at £99.99.
If you want the “next level stake” and a 5% ownership, the costs effectively double. Your initial payment comes in at £699.98. This is comprised of a £499.99 capital payment and a first monthly cost of £199.98. All subsequent months are then billed at £199.98.
Racing to Profit do say that if you want to pay upfront or in blocks, there are also options for this available. But you will be liable for costs for the whole year.
What is the Rate of Return?
The income potential of something like RTP Syndicate is the million dollar question. What I want to say before I get into any sort of detail is something I think most racehorse owners will agree with. You don’t own them to make money. If you do, that is a nice thing, but it isn’t the reason that you should get involved. Racing to Profit is also quite upfront about this.
But that doesn’t mean that there isn’t any returns from this. RTP Syndicate pays out ether 2.5% or 5% (depending on your level) of all owners prize money, and any sales fees after cost. Effectively, you will be getting your full share of what the horse earns. But realistically, that might not be much at all, if anything.
Conclusion for RTP Syndicate
Building on my previous point about income, I want to start by being very upfront about the following. If you want to buy into RTP Syndicate because you want to make a profit, don’t. This isn’t something that will likely see much profit. Especially not in the early days where The Plumber is still finding his legs.
And that isn’t me being cruel either. The average costs for a racehorse over a year are between about £16,000 and £22,500 according to The Racing Post. In the meantime, just 12.24% of horses will see annual prize money of at least £15,000. There are probably just 2,500 horses that will actually pay for themselves. In the meantime, more than 17,000 won’t.
So, if you’re looking at RTP Syndicate as a financial investment. It probably won’t work out for you. That isn’t to say that it definitely won’t. Racing to Profit really fancies The Plumber and he does seem to have the background for the potential to win. But all of that really rather ignores why you might want to consider this.
What has stood out to me looking into RTP Syndicate is that Racing to Profit and Josh are really focused on providing a positive experience as a part owner. Their aim is to provide you with a service, and from what I can understand about previous syndicates that they have operated (with leased horses rather than owned), they are very good at this.
On top of that, I think that it’s really quite exciting to see the potential of a young horse with a decent young trainer. There aren’t guarantees, but from what Racing to Profit have said and looking at Amy Murphy’s past, that potential is real. And of course, if the relationship works well, the syndicate can also grow with her… Just a thought.
Of course, RTP Syndicate is expensive. Not necessarily much more or less than any other syndicates that I’ve seen mind. But there is no denying that objectively, £100 being spent every month is a lot. But this is, in my mind, a luxury service that you are signing up to. And that is, I think, how you need to think about this. If you aren’t in a position to spend £100 per month as a luxury, this should be a no go off the bat.
But I think if you do have that money, if you do have an interest in horse racing as a leisure pursuit… well, RTP Syndicate looks like quite an exciting option. It comes from a pretty well know and established brand, whilst I don’t know much about owning horses, The Plumber looks like it’s a reasonable enough horse that will be interesting to watch develop. And of course, you get more access to what you love.
And that is my closing thoughts on RTP Syndicate. It is all about helping you to get closer to the sport you love, in a way that you might not be able to afford to otherwise. As well as the obvious benefits, you are getting access to a group of people with the same interests, with the same goals, it is a good way of getting further involved with the horse racing community.
So, as a financial investment. RTP Syndicate doesn’t look great, if I’m honest. But if you start to see it in the light of, say a season ticket at a football club, or a box at a more local team. That is where I think RTP Syndicate has appeal. Like I said, most people who own racehorses don’t do it for the money, they do it for the lover of the sport and the involvement of the event.
