Frequently Asked Questions

Are there risks associated with Thoroughbred Ownership?
Yes.  Thoroughbred horse racing is a risky venture.  Approximately 60% of the horses born every year reach the track.  About 45% of the horses born every year are winners.  8% are stakes winners, .07% are Graded Stakes winners and .01% (or 1 in every 1,000) are Grade 1 Stakes winners.  While these are long odds, we would like to point out that they are much better odds than – say – The Lottery!  

Are there tax advantages to Thoroughbred Ownership?
Yes.  Recent changes to the tax code have greatly increased the tax benefit to Thoroughbred owners.  Consult your tax advisor for more details.

Is the Thoroughbred Insured?
Pocket Aces Racing does carry mortality insurance on our thoroughbreds.

How are purses (see thoroughbred definitions) distributed?
All purses are initially held to cover future expenses.  At the end of each year, if cash assets in the partnership exceed the expected expenses for the upcoming two quarters ($15,000), the surplus is distributed according to each member’s ownership.  Purse money may also be distributed throughout the year at the discretion of the managers.

Do you charge a management fee?
Pocket Aces Racing does not charge an on going management fee.  All quarterly maintenance fees go to cover the training and racing expenses for the thoroughbred.

Why did you start Pocket Aces Racing?
We created our first partnership in 2005 by bringing together several of our friends and acquaintances to purchase a filly by Victory Gallop at the Keeneland Yearling sale.  We were surprised at the enthusiastic reaction our idea received and decided to create similar opportunities for other Thoroughbred racing enthusiasts.

Is there any preference to the type of horse we will purchase?
Yes.  All of our horses undergo a rigorous inspection process.  They must meet very specific pedigree, conformation, and vet parameters. 

Why is the partnership set up as Limited Liability Company?
A Limited Liability Company limits its members from liability.  Only the assets of the company are subject to liability should a situation arise.

How are the Members kept informed about the Thoroughbred?
Pocket Aces Racing LLC makes communications with the Members a top priority.  Members will receive quarterly financial reports and weekly updates on the condition of the Thoroughbred via email.  The managers will periodically send pictures and videos of the Thoroughbred as well.  Should anything “out of the ordinary” occur, the members would be notified immediately.  In addition, members are more than welcome to schedule appointments to see the Thoroughbred at the farm, training center, or track.

How often does the Thoroughbred race?
It is not possible to say with 100% accuracy how often a horse might race in any one year or over the course of its career.  However, it is hoped that each Thoroughbred will begin its racing career by late summer of its two-year old year. As a three-year old, four-year old, and five-year old it is possible for a horse to run 8-10 times in a year.

How are partnerships concluded?
Partnerships are concluded in a variety of ways.  At some point in their careers, many horses end up in claiming races.  If a horse is claimed, the partnership is concluded.  Though it is not the aim of Pocket Aces Racing to sell horses off the track, it is a possibility.  Horses may also be sold privately, or at auction at the conclusion of the racing career.  At such time, all outstanding debits will be paid, and the cash assets will be divided according to each member’s ownership interest.

Do members have input into the racing campaign of the Thoroughbred?
Yes and No.  Members are always welcome to share their input, and the managers will take such input into consideration.  However, the ultimate decisions regarding the racing career are up to the managers.

Do members have any input into decisions about the Thoroughbred?
Yes.  Members will vote on any extraordinary capital expenditures.

Where does Pocket Aces race their horses?
Pocket Aces Racing primarily races on the Kentucky circuit which consists of Keeneland, Churchill Downs, Turfway Park, Ellis Park, and Kentucky Downs.  We also race in Pennsylvania, Indiana, Illinois, and West Virginia.  In essence, we try to provide our horses with the best opportunity to compete and win races.

Who will train the horse(s)?
Joe Deegan is our Trainer in Kentucky.  A former jockey from Ireland, Joe is based at High Point Training Center in LaGrange, KY.