Wrap 2014; Open 2015

All the bills are paid and the accounts balanced so we are ready to wrap 2014. There were a lot of milestones in 2014:

– 1st allowance race;
– Most wins;
– Five race winning streak;
– Most purse money.

The bar is set pretty high for 2015. Frankly, it would be amazing if we could match this season. But what the heck? We have to at least try, right?

Our final balance was $43,710.22. With 202 members, that equates to $216.38 per person. By way of contrast, last year – the previous record setting year for wins – returned back $184.92 per person. If you switch some of those late season wins to the higher pursed Canterbury Park and we could very well have MADE money this past season!

We were immensely fortunate and I hope everyone had a great year. The final spreadsheet is at the bottom of this post.

2015 Canterbury Club

We’re open for business for new members and renewals! Basically all parameters will remain the same: $250 buy in; no additional payments; free admission for the season, etc. The picture process, should we be fortunate enough to win again, will be the same but we will be monitoring that a bit closer as there were some folks who put their names down to get pictures after the initial run that missed out on receiving them. We will make sure that doesn’t happen again.

Closing date for the 2015 Club is February 15, 2015. This will give us enough time to get the money in and allow Clay and I some shopping time. The sign up sheet will follow in a future post once it is ready. Please let Jeff (jmaday@canterburypark.com) know of your intentions so we get the money back to those of you that are not rolling over and keep track of those of you that are.

For those of you rolling over, you can mail a check made out to “Canterbury Racing Club 2015” for $33.62 to:

Canterbury Racing Club 2015
c/o Jeff Maday
1100 Canterbury Road
Shakopee, MN 55379

2014 CBY RC Running Financials FINAL

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General Updates

2014 Club

It looks like we are ready to close it out! The last vet bill came in and I will be reconciling all the statements this weekend and hope to have a final spreadsheet out shortly. I can guarantee it was the best year we’ve ever had though we will fall short of breaking even – though not by much.

2015 Club

I don’t foresee many changes in 2015. Jeff and I will discuss this weekend and a post on the new Club will go out. Hawthorne starts up Valentine’s Day weekend but I think we’ll leave signups open until the last day of Feb so Clay can start shopping in March.

Alumni Group

There was interest for right around 40 people though that number dropped to 23 when signing up for the Yahoo! page started. I sent an email out to everyone that sent me an email address. Jeff sent over a couple as well. Signing up for the Yahoo! page doesn’t necessarily mean that you are in, but it’s a place to interact and vet out with Q&A if you want to be in. Folks that decide that it will not be for them will be able to leave the group without spending a dime.

If you didn’t get an invite (and I sent out 43 of them) it may have disappeared in your SPAM filter or just not made it. If you didn’t get an invite to join Yahoo! groups and you signed up for information on the alumni group, please let me know at ted@grevelisracing.com and I will resend the invitation. You will need to create a Yahoo! ID to join. It will guide you through that free and relatively painless process if you don’t already have one.

THIS group I want to firm up and close out by February 15.

Starting to Close Out 2014

With almost all the billing in for 2014 it looks as if this year’s Club will surpass 2013’s record breaking season. It appears we will finish up just north of $40,000 or about 80% back to the folks in the group. Some other milestones this year:

– First allowance race appearance. MARYJEAN finishes 3rd.

– Most wins in a season: 6

– Most consecutive wins: 5

– Final stats: 15 starts, 6 wins, 3 places, 3 shows (40% win percentage; 80% in the money – also both records)

– Total earnings: $51,625

As soon as we get the final vet bill we will post the final financial spreadsheet and breakdown the return even further. Look for an announcement on the 2015 Club shortly. Those of you that have expressed interest in the Alumni Club will be getting an email update this weekend. I have received 43 inquiries so even if everyone doesn’t decide to join, I think we’ll have enough to move this group forward!

Happy New Year!

Intermediate Group Q & A

Here is the Q&A that came through with folks looking at the “intermediate” group. These seemed to be consensus of most questions. If you have additional questions, please put them in the comments section and we’ll use this thread to get as much accomplished as we can.

The number 1 question had to do with money and, in one way shape or form, went something like this:

How are any profits distributed?

Yes, I boiled this one down a bit and blunted it, but that’s the essence. After the first three months, the goal is to have 3 months expenses in the bank with any excess amount going out to a vote of the group with the following options: just leave it in the bank; look for another horse; distribute it in the form of dividends back to the members (again, leaving 3 months expenses in the bank).

Not to beat this to death, but while we are going to strive to make a profit I hope you all know now how difficult that is and that it is far from guaranteed.

What is the duration of the group?

As long as it takes. There are no barriers to this group. The LLC will last as long as we are willing to run horses. Every time we are horseless we will re-evaluate and folks will have the opportunity of getting out and, possibly, coming in – or disbanding altogether; this will be part of a group discussion.

Unlike the Racing Club, this is an ongoing obligation and, should things go south, we can’t just throw up our hands and walk away. We’re legally obligated for our share of expenses. If in a year you decide that this isn’t for you, you can sell your share if you’d like but who you sell to would have to sign the group contract. In the past with some of my other groups, when we become horseless is the time to evaluate who wants to stay in and who wants out. At that point, with all the obligations of the group paid, if a few want to walk away (and others may want to join), then that is the perfect time to do so.

In all honesty, what we’ve seen through experience is the world wants to join when things are going well and no one wants to pay the bill if things aren’t going well. I like to tell people to go in planning on never winning a race and be delighted when we do. Keep in mind also that we will be running horses where they belong and that a claim isn’t a bad thing – we won’t be keeping bad horses forever.

What are the tax implications?

You need to talk to your accountant. Every year members will get a K-1 showing profit or loss of the year’s activities. How that affects your individual tax scenario, I do not know.

How are decisions made?

Everyday decisions will be made by Clay and I. If we get an offer to buy a horse we own, that will go out to the group in the form of a poll. Voting will be of short duration, usually 24-hours because time is usually of the essence, so watch your inboxes. There may be the opportunity to discuss potential claims or private purchases through the forum as well depending upon time. However there is virtually no way to achieve consensus on 50 individuals, though a clear majority will rule. In close situations, Clay and I will decide.

Will members need to get licensed?

If the group fills to its 50 member limit, then each member will have a 2% ownership stake, under the 5% threshold to be licensed in MN and IL. However I will check with the Commission and see, for those of you that want to be, if you are still allowed to be licensed if you own under the threshold. Licensing fees are $50 for the license plus fingerprinting ($21.50 to run the prints) and are the responsibility of the member. The licensing of the group is paid for by the group.

How much extra could we have to pay?

As I hope you all know at this point, this can vary. There are vet bills, farrier, shipping, training etc. I think over the course of the year we factor in $2,600 a month for expenses, that’s probably close. How quickly we do or don’t run out of money is contingent on the success we have on the racetrack.

One other thing to remember, if the group fills everyone will be 2% owners. Up considerably from the .05% of the Canterbury Club but, looking at $4750 a month in bills for 2 horses ($14,250 for 3 months) then the average liability per member (estimated), if there are absolutely zero earnings during that period, is $285 every 3 months.

Where will we race?

We will race in Minnesota and Illinois – we will follow Clay.

I hope that this helps somewhat. It may end up generating more questions, and that’s okay too. Just lay them out there and we’ll get ’em answered!

A Second Group (Maybe) For 2015

As you all know, the Club is ginormous – which is a very good thing, I think! We try and keep the Club’s focus on the educational aspect of racing, giving everyone the ability to “pull back the curtain” on horse racing and, hopefully, having some fun doing it.

One thing I think we’ve all noticed is that there are folks who would like to step up to the next level: the ability to carry horses over from season to season; maybe buy a better horse and run at higher levels; having a profit motive, among other things. The problem, I think, is that the next step is a smaller racing partnership that offers folks entry at $2000 or $2500 – quite a leap from the $250 buy in now for the Club.

I’m thinking of offering a special partnership group ONLY for folks that have been in the Club. This would be an “intermediate” group, if you will. The buy in will be less than a ‘regular’ partnership (though higher than the base Club), there will still be free admission for the members and, if I can arrange it, discount winners’ circle photos (should we be lucky enough to win) and a meeting location to watch the races (when available). There will also be an attempt to make money for the members so there will be tax consequences from year to year as well as a downside risk – the track will not be the safety net for this group. If the group looks at a deficit, members will be billed for the cost.

The basic parameters will be (roughly, we’re still working on the specifics):

$1,000 buy in
50 member limit (25 member minimum)
Clay Brinson will train
Admission for the season
Carry over of horses
Members CAN make money (though NOT guaranteed)
Members responsible for proportional amount of any shortfalls
Group will have it’s own name and LLC
Canterbury will not have an affiliation with this group

Group communication will be handled through a private Yahoo! group that will be specifically for the group only as opposed to the open blog for the Club. While we will be running the Club via GRS, ownership will not be under Grevelis Racing but under the group name as a separate ownership entity. We will be looking to either claim or privately purchase a horse with Clay and, if the group is filled up, we would look at possibly two horses around the $15,000 price point or a single horse that might be closer to $25,000 that we can hopefully compete at a higher level.

The Canterbury Racing Club and it’s parameters and primary mission will still exist and, hopefully, continue to be popular with fans. This is designed for folks that may be ready to move on but not quite ready to jump in THAT deeply.

I’d like those folks that are interested to email me at ted@grevelisracing.com and let me know. Obviously if the interest isn’t there we won’t go forward with this but it seems to be the right time to offer a group like this. This way I can get a head count and we can determine if we will move forward with the group.

Win and Claim Close Out 2014 Club

Terice did it! She notched her 2nd win in a row and made it 5 in a row for the Club by overcoming a TON of trouble and winning the 5th at Hawthorne under a confident ride by Emmanuel Esquivel.

Terice broke well and was carried a bit wide through the first turn, though not outrageously so. She finally settled nicely down the backstretch but found her self boxed in and with nowhere to go as they started to enter the far turn. Esquivel had to check her hard to back her out of trouble and then angle around the traffic just to get her a clear run at the leaders when they straightened for home.

Esquivel worked on her nicely through the lane and she responded well closing on and then passing Geneva Lake and holding her at bay through the wire. It was a very confident ride by Emmanuel as he had to have known that he had plenty of horse beneath him. The Jacobson’s were there to represent in the winners’ circle as well!

She did get claimed in that race which, as you know, needed to happen so it was a good thing even though it’s tough to see her go. The new trainer is Chuck Turco who hangs his shingle at Canterbury over the summer so we should see her back again in 2015 and, of course, wish her nothing but the best.

Congratulations, folks. It was a record breaking year and I’m very happy for you all!

Now we will wait for the vet bills and Clay’s last couple of bills and hopefully we will have this all wrapped up with final totals by the 2nd week of January.

Details on next year’s Club and a possible new option for Club members coming in a few days. In the meantime, CELEBRATE!