[TrueColoursFarm]

Has anyone on the board owned a stallion that they sold shares on?

How does it work exactly - if each share price is XXX, that allows them one breeding per year to said stallion for the rest of the stallion's lifetime?

And if you sell the stallion and he moves too far away for the shareholders to effectively use him, is it "too bad so sad", or would they then look to sell their share in him and in doing so, does the stallion owner get a "Handling Fee" or such from the new shareholder?

If, lets say, 15 shares were sold, what is realistic and fair then for the stallion owner to "hold back" as services for said stallion to sell on the open market, in conjunction with those sold shares for every breeding year? To be fair to themself to generate revenues on the stallion in later years and also to be fair to the shareholders who have put their money up front to breed to that stallion and dont want hundred of offspring on the ground being sold each year to compete against ...

I am assuming that over and above would be any/all board and related expenses, etc while the mare was being bred as well ...

Many thanks for any and all advice on this one from anyone who has walked down this particular path before!

[ches]

Once you sell shares in a stallion, there is no one "owner." The owner becomes the majority share holder and needs to consider the wishes of the other share holders before making decisions.

When you sell shares in a stud, then yes, that does guarantee the share holder one breeding per season, and if they don't use that breeding they are able to sell it. You are not supposed to let the stud service more mares than shares each year, although if the stud is able to breed extra mares, those "bonus" breedings are assigned to the shareholders on a rotating basis each year. In that way, some years a shareholder is entitled to two breedings per share.

Here is a good description of how it all works. Stallion shares

[Acme Acres]

It all depends on how it's wrote up. The Arabian world has Syndicated many top stallions for millions of dollars, then the Stock horse industry has done the same with a few big time cow studs, but it will cause you to loose control of total ownership and direction too.

[Shannon]

Just a thought (this is NOT coming from someone experienced with this--obviously!-- so take it with a grain of salt)....

Maybe it would make more sense to syndicate the stud in question with warmblood breeders rather than TB breeders? (I don't know the difference in interest however) Then, you don't have to worry about location unless the stud is imported overseas, because AI will always be an option.

[Mary6478]

I think HeavenlyJumper's husband owns a share on an Arabian stallion...I bet she would know

Sorry I am no help.

[Haas Horse Farm]

Yes I know someone who did this and they are still in court trying to get it all sorted out. Find out what the requirements are with the registry before you do anything else. I do not recommend it. You would be better off selling breedings instead of syndicating the stallion. Life time breeding agreements do not change the ownership of the stallion. Syndications do. Make sense?

[TrueColoursFarm]

Thanks everyone and yes - I was looking at selling lifetime breedings more than I was looking at a stallion syndication situation ...

But - it is a "moot" point right now ...

It looked like perhaps the deal on my 2007 "Remember My Name" colt may not have been going through, and the longer he stayed the more I was falling in love with him, and all it took was one email from a lady I knew asking "Would you ever consider keeping him and selling breeding shares in him?" to get the wheels turning as to what might be possible with him.

But the cheque came through yesterday and he is now 100% officially sold and will no longer be going to Germany, but to Scotland once he has been weaned and has gone through quarantine to become the basis for their coloured TB breeding program in that country in a few years time ...

But wonderful advice here for that next one that I just HAVE to keep and need to find justification in doing so ...

[Sandra-A1]

While you would need to consult with an Attorney who is well-versed in Equine Law...the following might answer your basic questions.....
Here is an example of one for breeding rights only: http://www.goldenridgefarms.com/pdf/...21606clean.pdf