Indulto, I fought my way through your post, since there actually was some meat on those bones, and was pleasantly surprised to find you had improved your writing from incomprehensible to simply tedious. Your first paragraph showed complete lack of understanding of the subject, your second was a complete waste of space. But the final three-- now you\'re getting somewhere.
On this site you will find, as far as I know, the only disclosure by any consultant, bloodstock agent, trainer etc. of all the horses bought on their advice over an extended period of time, in this case 5 years, from 95-99 (some of the horses ran after that date, and their later results were counted up to the point we did the study). It was a tremendous pain in the butt to do, which is why we haven\'t updated it-- the results since haven\'t been at that unbelievable level, but even if we put the whole thing together the overall results have been remarkable, much better than anyone else has ever done that we know of for a large sampling. This in a game where annual purses total about half of expenses, and that doesn\'t even take into account the cost of the horses.
So yes, it has been a very good idea to hire us. Even if in some cases the result was not a profit (some of the Graph ventures, for example), overall our clients have done far better than owners do as a group. We are worth the money, and then some.
Which brings us to Len\'s post. Len, I\'m glad you seem to finally be willing to discuss the question of what you charge horsemen. So let\'s do it. In general I charge clients 5% of purchase price and 5% of revenue, and for help in managing horses where we haven\'t been involved in the buy, 3% of revenue. (The Graph deals were structured differently, with nothing on the front end and a bigger share of revenue in exchange-- the idea being to conserve capital). On the basis of 3%, I would be charging Frankel\'s owners about half a million for last year, and that\'s just on purses, not syndications etc. Obviously, I would have given him a discount for bulk-- let\'s say it would have been $250,000 all in.
So, what did you charge him last year? You are obviously an integral part of his success and that of the other top guys you mention, so they must be willing to pay you a lot, right? How much are you charging?
I\'m also glad you seem to be willing to discuss the results of that racing venture you mention. How about doing what we did? How about listing all the horses where you were the ones advising on the purchase, and receiving commissions, for a 5 year period of your choosing?
By the way, finances aside, there is an aesthetic side to this business, as you said. We\'ve been responsible for advising the purchase of and received commissions for 67 horses that have gone on to win stakes for our clients, and expect to add to that total over the next 6 months, and we\'ve been in business about half the time as you guys. How many stake winners do you guys have?
