SYNDICATION 101: HOW IT COULD BENEFIT AUSTRALIAN EQUESTRIANS

With equestrian syndication still emerging here in Australia, we delve into how shared ownership models work in practice, what attracts new investors, and the critical legal and structural considerations those involved must understand from the outset.

Helping finance Australia’s equestrian talent can not only support the growth of young and established riders competing locally and internationally, but it can also offer excitement and engagement to investors looking for meaningful ways to contribute to society. 

Historically, most Australian riders have – and still are – funding their own journey, using endemic sponsorships from equestrian-related products, as well as family and friends’ funds, to invest in their careers with one or more talented horses.

INVITATION TO EXCITEMENT

It’s an invitation to enjoy a new and exciting interest in an elite sport. This in turn introduces lifestyle benefits previously out of reach and friendships which can continue to provide rewarding and exciting experiences for many years.

According to Michael Mackinnon, the principal of HorseForce Legal Australia who specialises in equestrian work, “Syndication involvement in equestrian sport is, in my experience, by family and friends of riders in the various equestrian disciplines, being horse and rider combinations already competitive at the national or international level. But many talented Australian riders don’t have the horseflesh – be it young horses or seasoned FEI horses – to take them to the top in Australia let alone be competitive overseas, because family wealth or wealthy connections are absent and they miss out on the chance to gain top-level experience and be competitive.

“It is these riders that deserve funding outside the family and connections investment model to get ahead in a sport which is costly, not to mention physically and mentally challenging.”

Failed and unprofessional experiences: Families and individual riders excited to invite friends, both in and outside the equestrian world, have sometimes created syndicates with limited to zero legal input. The lack of business acumen from a syndicate manager can end in disappointment and significant financial losses. What started as an exciting adventure can leave disappointed friends, family and investors who will not reinvest.

Long-term patience: As a longer-term investment, it can be seen as a disadvantage. There is a need to invest in a rider/horse combination over years as they build to high performance or a level agreed toward the sale of the horse.

Visibility: Exposure of equestrian disciplines in mainstream media has not been as well covered, promoted or sponsored as polo and horse racing. But as research-based marketing begins to bring about more visibility and public accessibility, the heads of investors will begin to turn. For instance, “A horse sport loved by the rich and famous is taking off in Australia” headlines just one equestrian story in the Australian Financial Review by Eugenie Kelly in August, 2025. 

• Go professional while the ATO considers your sport as a hobby. If you choose to go to the next level via a long-term career, with several mounts and solid plans to compete at the top level both at home and overseas, your stable becomes your business and will create normal taxation benefits and deductions. 
• An alternative to a mix of individual investors in a syndicate could include a business or businesses which choose to be seen as the sponsor of the horse/rider via a set financial contribution. This allows that contribution to be tax deductable.

“Where a business wishes to support a horse-rider combination, it may be possible to structure that support as a sponsorship payment. Such a payment may be tax deductible where it is genuinely made for business advertising or promotional purposes,” notes Simone Palfreyman, principal of Palfreyman Chartered Accountants.

JUST WHAT IS A SYNDICATE?

What can your syndicate look like? According to Equestrian Australia, a syndicate is when two or more like-minded people come together to share ownership of a horse. People join or create syndicates for various reasons, but the most common one is in order to share the costs whilst being able to enjoy the fun and excitement of owning a horse in a super Olympic sport, which takes place in so many fantastic venues locally and around the world. 

Why would an investor be attracted to your syndicate? Non-endemic (not equestrian related) Investors can be attracted for two main reasons: 

• Possible profit.
• Fun, excitement and the thrill of your horse competing anywhere in the world, providing unique and exciting experiences for all involved.

Of course, transparency from the outset for investors remains the key ingredient to attract interested parties. For those outside the industry there will be a need to provide documentation with a thorough rundown of the rider, the possible risks, the proposed horse purchase/s and plans for the first 12 months and beyond. Usually this can be provided by the rider/trainer and compiled by an appointed syndicate manager to oversee and report regularly to all syndicate members.

While syndication rarely triggers heavy regulatory oversight in equestrian sport, the legal framework behind it still deserves careful consideration – particularly for professionals.

As Michael Mackinnon of HorseForce Legal says, “In the equestrian horse sector, investment in a syndicate arrangement is unlikely to be characterised as a financial product and be promoted by a professional syndicator, which are necessary features to attract the onerous registration and licensing requirements under the Commonwealth Corporations Act. But it’s something that a professional rider or horse barn might need to have at the back of their mind.” 

EMA KLUGMAN SHOWS US HOW

Ema Klugman is an excellent example of how syndication has benefited a rising Australian eventer. Ema is a member of EA’s High Performance Squad, having been included on the Generation Next (Emerging) squad. Her inclusion confirms she has been identified as a potential future rider for Australia in the Olympics and World Championships. Currently based in Maryland, Ema runs a stable of about 10 horses, with four of these being syndicated. Her business model sees Ema owning 50 per cent of her horses and investors owning 50 per cent.

The story of the syndicate, which attracted a team of women in medicine to finance 50 per cent of her future, captured the interest of the media and US equestrian world. Ema had the equestrian cred to attract investors for her first syndicate. She also networked with friends from college and used a Facebook group of 3,000 Physician Women Equestrians. Ema’s friend put up an ad for a “Bronte Beach Syndicate” in that group, and the rest is history.

A great example of a localised syndicate model is Samuel Jeffree’s Santoro. This year alone, they have won the CCI4*-S at Tonimbuk and Wandin Park, and placed fourth in the CCI5*L at Adelaide. 

SYNDICATION 101: WHAT IT INVOLVES

1. A legal document drawn up for each horse/rider combination outlining the terms of the agreement. A lawyer specialising in the equestrian sector is essential.
2. Nominating a syndicate manager who will, as per the legal agreement, provide regular updates.
3. The syndicate manager must have a business track record or already have held down a job which proves management and communication skills. Any investor has the right to know the expertise of the manager and any syndicates they have managed before.
4. Background on the rider/horse combination. Full details/records of the wins/successes of the rider and horse combination as well as the breeding and background and, of course, a thorough vet check of the horse.
5. An email update is regularly sent to all syndicate members from the syndicate manager providing ALL details relating to their investment. This should include when the horse is competing and where; an online link to watch the horse/rider compete or a list of venues to personally attend if possible; and the health of the horse and comments from the rider on the performance of their horse.
6. The upfront investment should include the percentage of the horse the investor/s are buying as well as the estimated costs for the next 12 months on their upkeep. This estimate cannot be altered during the year. The estimate is based on existing expenses including agistment, training, food, vet, travel, entry fees, and insurance on horses already competing in the past for the rider. 
7. Ideally, one invoice is sent and paid for upfront (for 12 months) and managed by the syndicate manager for both the rider and investors. EQ