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
what makes participating in a Mojo Group so attractive?
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
Send questions about putting together a partnership with a group of
your friends to: Fred
Chief Executive Manager, and President).
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
By making participation more than a financial transaction.
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
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
The thrill and excitement of first-hand participation in the sport of
thoroughbred racing and the industry that supports it.
For a fraction of the total cost to a sole owner, the prospect to enjoy
behind-the-scenes aspects of the game in person.
The opportunity to learn about what goes on at the farm; on the
backside; and in the clubhouse.
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.
are the key differences between the Mojo Thoroughbred Holdings, LLC and
other racing partnerships?
a Mojo Group is very affordable. The contributions required are
approximately one tenth of what you would have to pay to join a larger
builds each group to fit the needs of the participants.
do I have to fill out a Participation Document just to have fun?
(Isn’t my word good enough?)
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
but is it legit?
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.
out; but that sounds like a lot of legal double talk?
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.
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.
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
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
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.
there a limit to the number of Participants?
For each Mojo Group, the number of Participants needed will be
"spelled out" in the Participation Document for each Mojo Group being
I get to know the other Participants in the Group?
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.
much does my Capital Contribution cover?
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
you be more specific about the costs to manage a racehorse in
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).
acclamation or “break in” expenses - the cost is about $45
a day, plus vet and grooming expenses (and that’s about $1,800 a
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
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.
What's a typical timeline from purchase to
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
are some examples of expenses not covered by the Capital Contributions?
licenses, a Participant's personal transportation, accommodations,
meals, and any entertainment expenses.
be purchased to protect the Group's investment?
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.
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.
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.
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.
long does the Group last?
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.
makes the decisions about the Thoroughbred’s racing activities?
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
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.
much participation is expected of me?
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
Mojo Thoroughbred Holdings, LLC buy a big barrel of Maker’s Mark
bourbon with the winnings?
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.
I be given updates on the Thoroughbred’s progress?
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
Participants are also encouraged to follow all of the Mojo activity on
Facebook and Twitter.
I be able to visit the horse and stand in the saddling paddock on race
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.)
happens if the Group's Runner doesn’t do very well, or it gets
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.
should I submit my Capital Contribution?
are welcome to return your Payment and Participation Document at any
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.
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.
you have any additional questions about participating in a Mojo Group,
please contact: Fred
Taylor, Jr. - Founder, CEM, and
President - Mojo Thoroughbred Holdings, LLC.