MyRacehorse and Monomoy Girl/Got Stormy

[Merlinsky]

Seeing so many comments on articles about this acting like folks are getting scammed and hating on MyRacehorse. Sorry, I just don't see the problem. As one guy said, he was on his couch winning the Derby with Authentic and having a great time.

'But people are gonna buy in and not see a dime profit!' - well isn't that most racehorses? If you know the deal going in, what's wrong with that? Isn't it for entertainment? If you're not entertained by owning a microshare of a racehorse, don't put money down. Nobody's robbing anybody. They're not chumps if they walk in eyes open and get what they pay for (a good time). Putting $50 into something you don't expect to get a return on is up to you and happens all the time.

Do they at least send you a certificate or something you can frame?

[Dahoss]

You really don’t see the problem?

[Merlinsky]

Originally Posted by Dahoss

You really don’t see the problem?

You're defining it as a problem. I'm arguing it's not. Nobody's plunking down $46 thinking their ship's coming in or they'll definitely get to go to the winner's circle unless they're not reading in which case I'd suggest doing that before spending money as a general rule.

Sure it's subsidizing the investment of the bigger owners. Big deal. They're the ones taking the risk by racing a very valuable mare another year. They get the pay out, and frankly it's fair that they do. In exchange for putting down very little, i.e. risking very little, you get to own a racehorse for a few months along with several thousand of your closest not-even-acquaintances.

[jms62]

And here I thought I was dumb for owning racehorses but at least I got a few checks every now and again to offset the losses.. Do these MYRacehorse folks have to sign that check every month for trainers fees? You know the one that constantly reminded me of how dumb I was.

[gamblin4ever]

Originally Posted by jms62

And here I thought I was dumb for owning racehorses but at least I got a few checks every now and again to offset the losses.. Do these MYRacehorse folks have to sign that check every month for trainers fees? You know the one that constantly reminded me of how dumb I was.

From what I read, it's one time investment per horse.

[Dahoss]

Originally Posted by Merlinsky

You're defining it as a problem. I'm arguing it's not. Nobody's plunking down $46 thinking their ship's coming in or they'll definitely get to go to the winner's circle unless they're not reading in which case I'd suggest doing that before spending money as a general rule.

Sure it's subsidizing the investment of the bigger owners. Big deal. They're the ones taking the risk by racing a very valuable mare another year. They get the pay out, and frankly it's fair that they do. In exchange for putting down very little, i.e. risking very little, you get to own a racehorse for a few months along with several thousand of your closest not-even-acquaintances.

The point is they don’t really own anything. They’d get more excitement betting $10 on the horse everytime it runs. At least then they actually have a chance of seeing something in return.

Sure it’s a small amount, but you’re better off sending that $50 to a horse charity than into the hands of rich owners who are just preying on people who don’t know better.

[freddymo]

Originally Posted by Dahoss

The point is they don’t really own anything.

Exactly... the fraud is clear. They own nothing and are being lied to.

[jms62]

Originally Posted by Dahoss

The point is they don’t really own anything. They’d get more excitement betting $10 on the horse everytime it runs. At least then they actually have a chance of seeing something in return.

Sure it’s a small amount, but you’re better off sending that $50 to a horse charity than into the hands of rich owners who are just preying on people who don’t know better.

[moses]

Originally Posted by Merlinsky

Seeing so many comments on articles about this acting like folks are getting scammed and hating on MyRacehorse. Sorry, I just don't see the problem. As one guy said, he was on his couch winning the Derby with Authentic and having a great time.

'But people are gonna buy in and not see a dime profit!' - well isn't that most racehorses? If you know the deal going in, what's wrong with that? Isn't it for entertainment? If you're not entertained by owning a microshare of a racehorse, don't put money down. Nobody's robbing anybody. They're not chumps if they walk in eyes open and get what they pay for (a good time). Putting $50 into something you don't expect to get a return on is up to you and happens all the time.

Do they at least send you a certificate or something you can frame?

Come on. Rich people are duping poor people into crowdfunding their racehorses. Of course owners lose money on horses all the time. But if those MRH people who bought in on Authentic (a Kentucky Derby and Breeders Cup Classic winner), don’t see any profit, then I don’t see how anyone justifies it. I guess that remains to be seen after he hits the breeding shed. But it looks like the model is built so that the MRH owner can never actually see a profit, which isn’t the case when you actually purchase an individual racehorse.

[Merlinsky]

Originally Posted by moses

Come on. Rich people are duping poor people into crowdfunding their racehorses. Of course owners lose money on horses all the time. But if those MRH people who bought in on Authentic (a Kentucky Derby and Breeders Cup Classic winner), don’t see any profit, then I don’t see how anyone justifies it. I guess that remains to be seen after he hits the breeding shed. But it looks like the model is built so that the MRH owner can never actually see a profit, which isn’t the case when you actually purchase an individual racehorse.

They're not being duped. There's no trick. It's right there upfront. You know what you get and if you're fine with that, so what? It's like saying Disney is duping people into crowdfunding their theme park. Not everything is about obtaining profit. Thinking you can make guaranteed bank on a racehorse is rather optimistic. Actually purchasing an individual racehorse is still not likely to result in you counting the bucks. Technically you co-own Monomoy Girl if you have so much as one share, and from what I can tell if she had a big year and makes another million (not far fetched given her past record), you'd come out even.

[moses]

Originally Posted by Merlinsky

They're not being duped. There's no trick. It's right there upfront. You know what you get and if you're fine with that, so what? It's like saying Disney is duping people into crowdfunding their theme park. Not everything is about obtaining profit. Thinking you can make guaranteed bank on a racehorse is rather optimistic. Actually purchasing an individual racehorse is still not likely to result in you counting the bucks. Technically you co-own Monomoy Girl if you have so much as one share, and from what I can tell if she had a big year and makes another million (not far fetched given her past record), you'd come out even.

This isn’t what I said.

MyRacehorse seems to offer a deal where it is nearly impossible for the MRH shareholder to ever make a profit (even with a horse as successful as Authentic) based on the ridiculous valuations of the horse and provision in the agreement that the shareholder pay interest on money “borrowed” from another owner (in the case of Authentic, Spendthrift entered into an agreement with itself agreeing to the valuation and breeding rights that it is turns around and charges interest on the MRH shareholders for). Meanwhile, the MRH shareholders do not get the same rights/benefits as usual horse owners.

The fact that they advertise this as “ownership” is fraud. The fact that spendthrift sets the valuation and charges interest to MRH shareholders pursuant to an agreement that it entered into with itself is unconscionable.

As for the Disney comparison, it doesn’t stand. When I buy a ticket to go to Disney World, they don’t tell me that I own a percentage of the park. I’m there for a specific, advertised reason. If MRH were advertising this as entertainment and not “ownership,” then I think it would be slightly better.

All that said, lots of MRH shareholders seem happy with their “investment,” so I guess good for them.

[jms62]

Originally Posted by Merlinsky

They're not being duped. There's no trick. It's right there upfront. You know what you get and if you're fine with that, so what? It's like saying Disney is duping people into crowdfunding their theme park. Not everything is about obtaining profit. Thinking you can make guaranteed bank on a racehorse is rather optimistic. Actually purchasing an individual racehorse is still not likely to result in you counting the bucks. Technically you co-own Monomoy Girl if you have so much as one share, and from what I can tell if she had a big year and makes another million (not far fetched given her past record), you'd come out even.

Holy **** man... You need a HUGE Year from a HUGE Horse to break out even... You sign on for that deal?