Since many of the prospective Participants are new to the business of owning a thoroughbred race horse, friendly and easy-to-read reference material has been prepared to help explain the way the Mojo Thoroughbred Holdings, LLC (the entity) and Mojo Racing Partners works. 

In this regard, the following Q&A was developed to share information how Mojo Groups are formed and what you can expect as a Mojo Participant.


So, what makes participating in a Mojo Group so attractive?

Mojo Thoroughbred Holdings, LLC (the entity) organizes groups of people who want to rationalize their costs while simultaneously enjoying the experience of owning a thoroughbred racehorse.

Mojo Thoroughbred Holdings, LCC conducts racing operations as Mojo Racing Partners.

Send questions about putting together a partnership with a group of your friends to Fred Taylor  (Founder, President, and Managing Partner).

Each Mojo Group is designed to maximize every Participant’s enjoyment. Naturally, we want the horse selected for your group to be the first to cross the wire; but only one can win.  Since it only takes about two minutes for the horses to go around the track, Mojo Thoroughbred Holdings, LLC will try to stretch the excitement of watching a race over the lifespan of the group by hosting events to celebrate the group, the sport, and each other’s company. 


How does Mojo Racing Partners enhance each Participant's experience?

By making participation more than a financial transaction.

Just because some people get a big kick out of running down the middle of the street naked after they've had a few drinks, others prefer just walking around their house that way. In the same regard, each person’s definition of "fun" is different, and so Mojo Thoroughbred Holdings, LLC intends to provide different forms of entertainment. That is why, in addition to the do’s and don’ts spelled out in the stuffy legal documents, as a Participant you’ll have the opportunity to enjoy (among other things):

1. The chance to have a lot of fun with your friends and associates, while at the same time, meet new people who come from a variety of diverse professional backgrounds inside and outside of the thoroughbred industry.

2. The thrill and excitement of first-hand participation in the sport of thoroughbred racing and the industry that supports it.

3. For a fraction of the total cost to a sole owner, the prospect to enjoy behind-the-scenes aspects of the game in person.

4. The opportunity to learn about what goes on at the farm; on the backside; and in the clubhouse.

Let’s face it. You wouldn’t be reading this information if you weren’t interested. You and the person that keeps the checkbook deserve the best insight on what you’re about to get into. This is an important decision, and though you won’t be guaranteed to make your accountant happy, you do want to make your friends and family proud of the decision that you make.

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What are the key differences between the Mojo Thoroughbred Holdings, LLC and other racing partnerships?

Joining a Mojo Group is very affordable. The contributions required are approximately one tenth of what you would have to pay to join a larger racing syndicate. 

Mojo builds each group to fit the needs of the participants.


Why do I have to fill out a Participation Document just to have fun? (Isn’t my word good enough?)

In many cases, your word is just fine. However, without out a valid or "binding" contract (i.e. Offer, Acceptance, and Consideration), the rights and obligations of each Participant and Mojo Thoroughbred Holdings, LLC are about as beneficial as a horse that doesn't leave the starting gate.


Fine; but is it legit?

Yes. The terms and conditions of each group follow the state and federal laws that govern a Series LLC organization. The supporting documents fulfill the essential elements necessary to have a "binding" contract.


Far out; but that sounds like a lot of legal double talk?

Along with this Q&A, an easy-to-read Participation Conditions summary is available so any person can interpret and understand all of the legalese that goes along with the Organization Information.

Because most racehorses lose money for their owners, and big victories receive more publicity than typical losses, risk and obligations can get overlooked. The "Statutes of Fraud" (the laws related to contracts that protect one person from being tricked and another person from being held accountable for an unintentional mistake) also state, among other things, that agreements for goods and services that are (a) priced higher than $500 and (b) make guaranties of another person’s obligations need to be "spelled out" in writing. That means, the more there is to consider, the more the Partnership’s Offer has to be spelled out.

Once you decide (okay, your significant other gives you permission to invest) to participate, you’ll be asked to sign a Participation Document that basically says, "I understand the risk and agree to the terms." Doing so fulfills the second essential element of a binding contract: Acceptance.  The Participation Document serves to avoid any inferences; counter offers; misunderstandings about assignment; implications about each Partner’s risk; secret deals or silent handshakes.

The last thing that’s needed to make the contract binding (and really gets the horse out of the barn and on the racetrack) is: Consideration.  In the world of contracts, "consideration" is something of value (namely money) that is exchanged for a product, service, or both.  In the case of a Mojo Group, in order to become a Partner, each person is asked to exchange an Initial Capital Contribution (with the understanding he/she may need to pay more as the horse progresses or "graduates" from it training/racing levels) knowing that there may be no monetary return on any of the contributions provided.  I know. That doesn’t sound very attractive at first.  Please read on.

The bottomline reason for having a written Agreement: It would be shifty and irresponsible not to provide each Participant with an explanation in writing "up front" about what is expected between the Participant and Mojo Thoroughbred Holdings, LLC.

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Is there a limit to the number of Participants?

Yes. For each Mojo Group, the number of Participants needed will be "spelled out" in the Participation Document for each Mojo Group being offered.


Will I get to know the other Participants in the Group?

Absolutely. One of the primary goals is to get together and enjoy each other’s company as much as reasonably possible.  Mojo Thoroughbred Holdings, LLC will arrange social events for each group's racing activities.


How much does my Capital Contribution cover?

Depending upon the way the group is structured, the Capital Contribution is set based on a budget that's expected to be sufficient to pay for:  the purchase price of the horse (if there is one) and a set number of months for racing preparation expenses.  The coverage differs based on the stage of the horse's development and the costs associated to keep a Thoroughbred in race training. If additional funds are needed for operation of Mojo Thoroughbred Holdings, LLC's business, the Participants may be assessed and required to pay additional Capital Contributions in accordance with each Participant's respective interest percentage.  This will be "spelled out" in the Participation Document.


Can you be more specific about the costs to manage a racehorse in training?

Turn out fees (the horse is not in training) typically cost about $25 to $30 a day depending on the farm/location (or around $900 a month).

Racing acclamation or “break in” expenses - the cost is about $45 a day, plus vet and grooming expenses (and that’s about $1,800 a month total).

Training fees cost is $60 to $75 a day, plus vet, stabling, grooming, and other administrative expenses set by the Trainer (and that’s about $2,500 a month).

The health, maintenance, and administrative costs are: Vet evaluations ($120 to $200 each); Medications and Vitamins ($50 - $300 a month); Farrier fees ($100); X-rays ($260); Dental care ($75), Haircuts ($100).

All of these costs have been factored to determine the number of shares (and price for each), as well as the term of the respective group. 

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What's a typical timeline from purchase to the track?

If Mojo Thoroughbred Holdings, LLC purchases Runner (Yearling) in September, then the horse will be shipped to the training facility and will start learning racing fundamentals in October or November.  The initial training lasts 90 days.  After that, the horse will be x-rayed to determine its soundness, and the Runner's racing ability will be determined.  The horse will be given 30 to 90 days off for R&R to allow its bones, joints, and muscles to rebuild.  Depending on the horse's talent, the Runner could be sent to the track as early as June (of its two-year-old year) to begin its racing campaign.  Based on the horse's breeding and training results, it may be determined that the horse is better served to begin its racing campaign later in its two-year-old season or perhaps as a three-year-old.

If the horse is bought as a two-year-old in training, then the "turn time" is usually faster, provided the horse remains fit and sound. Typically, trained two-year-old should be ready to race in the late Spring or early Summer. 

If a horse is purchased via Claiming Race, then the racing action is immediate (relatively speaking because we would buy a horse that is racing).


What are some examples of expenses not covered by the Capital Contributions?

Owners' licenses, a Participant's personal transportation, accommodations, meals, and any entertainment expenses.

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Will insurance be purchased to protect the Group's investment?

Like homeowners and auto insurance, there are different types and costs for coverage. In fact, insurance can be the one of most expensive monthly costs to the group. Arguments for and against carrying insurance can be made, and based on the different types of insurance available.

Typically, Mojo Thoroughbred Holdings, LLC purchases mortality and colic insurance if the value of the horse exceeds $10,000.  If the Partners would like to carry additional coverage, that will be discussed after the group is formed.

The cost of insurance is based on a percentage of the horse’s “value” and the group's “worth”. The initial value of the horse is set at the auction, and the worth of the group is based upon the combined/total Investment. 

There are two main types of equine insurance coverage: Mortality and Liability. Mortality coverage reimburses the owners the full value of the horse should it die or be euthanized. Liability coverage pays claims brought against the owners should the horse damage or injure someone or someone else’s property.

Separate "riders" can be added to a policy to cover specific medical conditions and/or circumstances to insure against.


What about taxes?

As a Series LLC, each Participant will have maximum flexibility for tax purposes provided under the Internal Revenue Code, and will be able to take best advantage as far as the passive activity tax rules for general partnerships are concerned. Mojo Thoroughbred Holdings, LLC will issue to each Participant a K-1 that should be filed with the Participant’s individual income tax return.


How long does the Group last?

The length of each series group is spelled out in the corresponding Participation Document.  If the horse's ability merits racing beyond the set term, then continuing each person's participation is an option (but not an obligation) and a Participation Continuation Document will be provided to those who wish to extend their involvement in the group.

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Who makes the decisions about the Thoroughbred’s racing activities?

The Chief Executive Manager (CEM) and President make the final decisions about the bloodstock; when horse will be purchased; it’s name (if not previously registered); where it will be schooled; who will train it; what races it will be entered; as well as the other business matters of the organization and each group. That said, the CEM has a fiduciary responsibility to make decisions based on collective opinion of the Participants, and the President is subject to being overruled by CEM. 

Once a trainer is chosen, he or she will decide how the Thoroughbred is trained and what jockeys will ride it. That being said, Mojo Thoroughbred Holdings, LLC has the right to pull the Thoroughbred from the trainer’s care at any time. 

Mojo Thoroughbred Holdings, LLC is fortunate to be associated with individuals (that have years of experience and enjoyed success in the Thoroughbred Industry) who can provide helpful direction on the business and racing matters of the organization.


How much participation is expected of me?

As much as you like. During the group's term, Mojo Thoroughbred Holdings, LLC plans to host many functions at the track, on the farm, and at other Thoroughbred racing-related venues.

You’ll be invited to attend every Mojo Group event, and we certainly hope you’ll be able to make each of them. 

You are encouraged to attend Mojo’s group meetings because some of the important business decisions about the horse will be made at that time.


Does Mojo Thoroughbred Holdings, LLC buy a big barrel of Maker’s Mark bourbon with the winnings?

That would be nice; but all money earned will be first used to offset the expenditures related to operating the racing activities for each group, including budgeted reserves. Money not retained by Mojo Thoroughbred Holdings, LLC to defray operating costs or reserves will be distributed to the Participants of record (in accordance with their respective share percentages) at the end of the designated term. However, if each group has its expenses, costs, and reserves met on July 1, then Mojo Thoroughbred Holdings may to issue a Goodwill Distribution to each Participant.


Will I be given updates on the Thoroughbred’s progress?

You bet. Mojo Thoroughbred Holdings, LLC publish updates that report on the training, racing activity, health, and other pertinent industry information related to your group. These reports will be issued via e-mail.  

The Mojo website "News and Notes" is also available around-the-clock news about the racing activity for each group, and general partnership information is also available at your convenience.

Participants are also encouraged to follow all of the Mojo activity on Facebook and Twitter.


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Will I be able to visit the horse and stand in the saddling paddock on race day? 

In addition to watching the your horse race, Mojo Thoroughbred Holdings, LLC will organize visits to the farm, training facility, and backside so the Participants will be able to see their racehorse at the various levels of development. 

On race day, all Participants will be invited to the saddling paddock to watch our Runner as it is saddled up before bugler call’s the horses to the post.  (Barn visits are not allowed before the race on race day.)


What happens if the Group's Runner doesn’t do very well, or it gets hurt?

If the Thoroughbred is injured, recommendations by Mojo's Veterinarian and Trainer will likely decide the best course of action to take. Some injuries can be career ending and even life threatening.  

There are many positive avenues for a racehorse once their racing career has ended, and Mojo pledges to not take on any Runner that it cannot find a safe facility after its racing career is over.  The CEM and President work with our connections to find a productive home that is best suited for the rest of the horse's life.


When should I submit my Capital Contribution?

You are welcome to return your Payment and Participation Document at any time.

Your payment and document may need to be received on or before deadline (set by Mojo Thoroughbred Holdings, LLC) so the group will have an accurate accounting of available funds to cover the costs of the designated Mojo Runner in a reasonable time.


Is that it?

Pretty much. 

As you are reading the Participation Conditions and Organization Information, try to remember that the laws regarding Series LLC can be complex because they are created to protect the entity, the person who agrees to join the entity, and the person(s) who manage the entity. 

Also keep in mind that each law is subject to an exception, and even those exceptions may have exceptions. That being said, as long as the Agreement’s Offer is easy to understand, clearly spells out the Acceptance, and openly defines the Consideration (which, in the opinion of Mojo Thoroughbred Holdings, LLC, all three conditions are met), then the group will have favorable odds for lots of fun—and that in itself is a success. 

Even though any of the Participants may be a legend in his/her own mind, you are urged to seek assistance, when necessary, from a professional before participating.

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