2-year old Central banker filly

Hello everyone:

This is from Dan De Federicis from Saratoga Springs. I am sending/posting this for everyone I know who has or might have an interest in horse racing. Please feel free to forward this link to anyone who may be interested in this. What I am basically sending is my story about being a thoroughbred racehorse owner, and an inquiry to see if you are interested in buying a small percentage of a horse that my stable and some partners purchased from trainer Richard "Kerry" Metivier.   You may wish to print this out to read as it is pretty long  - if you ultimately plan to become a partner it is important that you read every corner of this so you are fully informed.  IMPORTANT:  if you would like to see the filly and meet trainer Kerry Metivier, please contact me at [email protected] or 518-378-6157 and I can arrange a visit to the Oklahoma Track.

This document will be broken into three parts:

1. The very basics - a quick rundown of the basic facts of this offering including costing.
2. Plan details, including a brief history of Gray Riders Stable and the two-year old filly we just purchased a part of,
3. A more detailed personal history of my 14 years of horse ownership, which includes the first eight years of Gray Riders Stable, and
4. Some disclosures about Gray Riders Stable and racehorse ownership in general.

 

The very basics - what does the offer entail and how much will it cost you

• We are offering 3% shares to prospective partners in the two year old filly IRENA N ELLA, by Central Banker out of Bajan Princess by Archers Bay. Click here for pedigree info.
• Our ideal plan is for her to be ready to race this summer at Saratoga, but that is far from a promise and because she is a 2-year old that is still developing she may not be ready to race until the fall (Belmont or Aqueduct).  
• She was bred and is being trained by trainer Richard "Kerry" Metivier.  He is not a Todd Pletcher level trainer but he is honest, hard working, knowledgeable and truly cares about the horses.  Click here for Kerry Metivier's statistics. 
• The cost for buy in is $1,850.00.  That gives you 3% of the horse and an estimated 3 months worth of expenses from April 1-June 30.  We would bill quarterly after that - we anticipate the ongoing training costs will be approximately $90/month or $270 per quarter per 3% partner.  Those costs go up with horse illnesses, injuries etc. and they go down if she is winning purse money and offsetting her upkeep, but understand she won't race for at least 3 months and it's unknown exactly when she will be ready to race.  
• NYS license fees for horse owners is an additional, personal expense.  The first year owners license is $100 + an $88.25 one-time fingerprinting fee.  
• Being an owner will get you a NYRA ID card plus a VIP parking pass for all 3 NYRA tracks.  See below for other NYRA benefits.  

IRENA N ELLA

 

Plan details, including a brief history of Gray Riders and the new filly the stable just purchased.

• GRAY RIDERS HISTORY: Gray Riders Stable has been in existence since 2011 when a few of my friends and I sent out emails to our contacts and asked who would be interested in starting a new stable. We had about 5 or 6 respond originally, and those founding partners got us started.   It is important that you know we are not a commercial syndicate but just a bunch of friends who got together to own horses; like Funny Cide's owners Sackatoga Stable - I guess sans the Kentucky Derby success lol.  So we added some more partners and soon purchased Storming Esther, an unraced but promising 2-year old filly by Freud, a very successful sire of NY breds. Storming Esther  trained well and ultimately raced for us about 6 times but unfortunately was at the back or near the back of the pack each race – she just didn’t work out as a race horse. She was physically sound but she was so nervous and just didn’t have the right head for racing. That is part of the game unfortunately, that sometimes things don’t work as intended, so we learned from it and moved on. We gave Storming Esther away to a teenager in 4H and she retrained her and Storming Esther is doing great as a show horse. Some owners don’t care what happens to their horses after their racing days, but Gray Riders does care immensely and we have not let our horses disappear from us.

 

The Gray Riders Silks:  The founding partners of Gray Riders Stable collaboratively designed the Gray Riders Silks while sitting at a Saratoga restaurant having breakfast. The design and colors represent the uniform of a NY State Trooper, who were originally called the “Gray Riders” when they were first formed in 1917. A number of owners have connections to the NYS Troopers as well as other police groups.  The “MTW” on the front is in honor of Michael T. Wallender, one of our original partners who sadly died in 2013. His son Michael D. Wallender is presently one of our partners.

 

• Our trainer from Gray Riders' inception until 2017 was Glenn DiSanto, a wonderful human being and one of the most capable and hardest working trainers out there.  He was more than our trainer, he was a friend to many of us including me and my wife Margarita.  Glenn and his wife Melanie were guests at our wedding and we just enjoyed having the honor of knowing them.  Glenn lost his battle with cancer in January 2017, and it was so sad of course and I wasn't even sure I wanted to continue in horse racing because for me and Gray Riders, it always centered around Glenn.  After taking a step back for some months, we decided we do love this game and we will always honor Glenn's role in this stable and our lives and we moved forward with trainer H. James Bond.  

Glenn Disanto

• In 2013 we decided to claim a new horse. We got our money together and put claims in for several horses but lost "the shake" each time. (To read a brief synopsis of how the claiming process works including what I mean by "the shake" click here.)  Then, under Glenn's recommendation, we successfully claimed Where’s Danny, a 4-year old Irish-bred gelding, at the 2013 Saratoga meet, winning a shake against 7 other would-be claimers. Where’s Danny ultimately was such a success for us - we soon realized it was fortuitous that we lost those earlier shakes. We claimed him for $20,000 and over the next two years he won $105,000 for us -including a win at Aqueduct in 2014 as well as several 2^nd and 3^rd place finishes.

In September 2015, Danny was claimed from us for $25,000. As much as a successful financial occurrence that was when he was claimed from us as a 6-year old for $5,000 more than we originally claimed him for, we felt awful about losing him because he won so much for us and gave us so much fun. We did not want him to disappear from us and end up somewhere bad plus we wanted to give him a well-deserved retirement. Fortunately the same owner put him up in a $12,500 claiming race a couple of months later, we claimed him back (and had to win a shake to do it!). We then promptly retired him, and he is being retrained by the Heading for Home retraining program at the Knotty Dawg Farm just outside of Saratoga Springs. One of our owners is very active in his retraining.

Gray Riders Stable's owners take great pride in ensuring our horses have a good and productive life after their racing days are over.  Above is Storming Esther, ridden by her current owner Stephanie who retrained her and successfully shows her at 4H shows.  Below, Where's Danny being retrained at the Heading for Home program at Knotty Dawg Farm outside of Saratoga Springs.

• In 2016 we claimed a gelding Dynamo Flotilla for $25,000.  This claim didn't work out like Where's Danny did as we soon discovered that the horse had cartilage injuries and needed to be retired.  We raced him once and he came in fourth, but the reality was he was hurting and needed to be retired and we donated him to ReRun Thoroughbred Adoption http://www.rerunottb.com/ who found him a nice home in New Hampshire.  We probably only owned him for all of 6 weeks, but Gray Riders always finds homes for his horses and we are proud of that.  Glenn did his research and due diligence, which he always did, but horse racing in general and the claiming game in particular is so risky - and to be honest there are some bad actors out there that will mask an injury then place the horse in a claiming race - that  is unfortunately part of the game.  You might claim a horse that wins a lot of money (like Where's Danny) or even becomes a stakes horse, or you might get stuck with a horse that had injuries and needed to be retired like Dynamo Flotilla.  If you are new to this game it is important you understand the level of risks and that there are highs and lows.  
• In 2017 we partnered with trainer H. James Bond on two three-year old fillies Tiz R Bella and Magari. We actually had some good racing with the horses, and both of them won at Aqueduct,  hit the board other times and were almost always competitive.  This partnership with Mr. Bond, however, was problematic to say the least and we got in a huge dispute with him about the training prices he was charging us, which we believed were excessive.  We sold our shares of the two horses back to Bond in satisfaction of the bills we owed and parted ways.  We wish to be transparent and note that we have had some good experiences and some bad in horse racing, it's not all about smiling in the winners' circle. 

My history as an owner

I’ve had a great time being a thoroughbred horse owner for the past 14 years. My wins with Wishingonadream (Pre Gray Riders), Where’s Danny, Tiz R Bella and Magari were thrilling, but for full disclosure purposes I want to tell you it’s very difficult to win at top tracks like Saratoga and Aqueduct and it was a long time in coming. In both my times in Gray Riders, and before in other stables, I have had my share of heartbreaks and disappointing races with various horses, so I don’t want to tell you about all of the good and none of the bad. Horse ownership can be an emotional rollercoaster ride that’s for sure. The good news is that we have won and been competitive, and equally importantly is we have raced fairly consistently with our horses in the NYRA circuit. For those experienced in this game – that is considered successful by many in horse racing - simply to be competitively racing your horse at a top track. Most importantly I have had so much fun doing this and I stay in the game not to make money, but because I love being this close to the sport I love.  If you're expecting this to make you money then I suggest you don't get into race race horse ownership.  Yes it may make you money, and that is certainly our goal, but more likely than not you won't pocket money.  The best approach to take is if your horse is earning some purse money and at least offsetting his/her expenses, and you're having fun and getting access to the inside, then it's the best hobby I know.  Some people play golf and pay a lot of money at a country club.  Good for them b/c they presumably enjoy it.  My country club is the Oklahoma Training Track. 

            

My wife Margarita and I, and now our daughters, have also had a lot of fun visiting the horses at the training track – and it’s certainly a thrill to see him up close with the jockey in the paddock just before the race and then racing live.

In my book this is not an investment – it’s a hobby. A hobby that is expensive, frustrating and sometimes heartbreaking, yet often fun, unique, and exhilarating and involving great people that I now consider friends. The bottom line is this: I’ve stayed in this game for 14 years now because it’s fun and rewarding and mostly because there is so much more to owning a racehorse than simply showing up on race day hoping to win.

Let me tell you some of those other great things about owning a racehorse.

• With just a 3% ownership, you, the average horse racing fan, can be an owner in “The Sport of Kings”. You’ll likely never own a major league sports franchise, but you can own part of a horse running at Saratoga Race Course and Belmont Park – and that’s pretty damn cool!
• For those of you that have never been a racehorse owner before – let me tell you it’s thrilling to be an owner both before and during the race. I loved being in the winners circle, but I also had a lot of fun in the paddock before the races and in the box during them. Quite honestly I felt pretty damn special. I once even helped Glenn prep one of our racehorses before a race at a track in Boston and that was fun.
• NYRA gives you a lot of little perks if you are an owner, namely:

1. I get an owner’s ID card and a parking tag which gets me free clubhouse admission and free VIP parking at all three NYRA tracks- that's a pretty good benefit at Saratoga - I get a chuckle everytime I park my minivan next to somebody's Porsche. 
2. They also gave a “family member” badge to my wife Margarita, which gets her the same free admission and access.
3. In addition to the free admission, our ID card gets us access to the exclusive paddock area where they saddle the horses up before the race – you can’t help but feel like you’re a Whitney or something when you are in such an exclusive area where you and all the other owners are all dressed up etc. and all the people at the picnic tables are looking at you like you’re super wealthy or something. Hell, they don’t know I only own 3%.
4. Depending on availability, owners can get a free box at the track with seating for up to 5 people on days your horse is racing. Again it’s nice to feel just a little special at a beautiful place like Saratoga or Belmont, and ownership gets you that.
5. The thing I enjoy even more than the races is the fact that as an owner I have access to the Oklahoma track, the backstretch, and the barns. That is really where I get my money’s worth, and it obviously benefits Margarita and I a lot because we live a short drive to the track so we’re there often watching the training and feeding the horses mints. Nothing puts me in a more upbeat and peaceful mood than when I go to the Oklahoma Track on a nice summer morning about 8am and watch the horses train there. The only two things you hear are the sound of the hooves hitting and the horse breathing heavily – Oh my God does that calm me down and put a smile on my face. I absolutely love going to the Oklahoma track in the morning and if I ever brought you there you would see why.   It’s great when you see all the horses training, but when YOUR horse goes by it really gives you a thrill.

In past years we've gone to Glenn's farm in the springtime to look at the baby foals, which are as cute of an animal as you can imagine, and going forward Kerry Metivier has extended the invitation to us at his farm.  Again: If all I did was follow the races my horse was in then I wouldn’t find it so enjoyable and I wouldn’t get my money’s worth, but I enjoy all the perks and access the ownership ID card gives me and it makes it all worthwhile.

• I mentioned I get free clubhouse admission and NYRA has a “horsemen’s relations” office that has helped me get boxes when my horse was racing. I sometimes go to the backstretch side to watch the races (the NYRA ID card gets you there) and it is a whole different experience and I enjoy doing that for a change of pace. You have enough room to have a picnic and you get a totally different (close-up) view of the start of the races and you can hear the jockeys yelling and stuff.
• I don't want to undersell the racing.  Having your horse race at Saratoga is a special thrill that few people experience.  One year I believe at Belmont we came in 2nd in a race to a horse owned by Mike Repole, the billionaire founder of Vitamin Water.  Yes, we were racing a billionaire and came within a head of beating him! 

More about the 2-year old filly Irena N Ella - who is targeted to run later this year

 

I think most of you know there are no certainties in this business, but Kerry is targeting IRENA N ELLA to make her debut at Saratoga.  That is far from a promise, as she's two year old and there are lots of unknowns and variables.  It could be the fall (Belmont) or later (Aqueduct) before this horse races.  She will tell us when she's ready and Kerry is a patient trainer who will not be overly aggressive with a 2-year old'straining schedule because that could cause her to get an injury.    She is a NY-bred sired by a NY Sire (Central Banker) which means we are eligible to enter races restricted to NY breds (with generous purses) and additionally be eligible for the NY Stallion series, limited to horses sired by those NY sires who were nominated for this series.  

 

TRAINER RICHARD "KERRY" METIVIER

Let me tell you what Kerry Metivier is and is not.  First of all he is:

• An honest trainer, who cares about the horses and his owners.  He could tell you where all of his previously-trained (now retired) horses are - many of them are on his Fort Edward Farm.  
• A trainer who likes owners to come the the barns at the Oklahoma Track and be part of the morning activities - the training, cooling down, brushing, barnyard banter etc.  Many, many trainers have no use for owners - and forget who is employing them.  Some trainers rip off their owners, and some treat these horses like a commodity.  Kerry Metivier doesn't do any of those things.  He only breeds his mares every other year, to give them a break from constantly being pregnant.  

Kerry Metivier is not:

• A top-tier trainer.  In fact, his win percentage is about 5%, well below that of the superstar trainers like Chad Brown or Todd Pletcher.  First of all, a small stable like Gray Riders Stable is not going to get a Chad Brown or Todd Pletcher, and yes there are others that are reachable with better statistics than Kerry, but he does win and had 7 wins last year, 7 in 2017 and 9 in 2016 - mostly at the uber-competitive NYRA tracks.  Complete stats can be linked here.  What we found out with Glenn Disanto, who had similar win percentages to Kerry, is that when a good, honest trainer gets a good horse like Glenn did with Where's Danny and we hope Kerry has with IRENA N ELLA, good things happen.  All too often it's the quality of the horses a trainer has, not necessarily the ability of the trainer, that dictates the wins and loss record.  

THE COST OF THE HORSE AND THE MATH

Kerry has valued the horse at $50,000, which is in line with what other Central Banker 2-year old fillies sold for in 2018. Here is the math:

1. 3% of filly = $1,500
2. LLC fees, Jockey Club, web site fees and other miscellaneous costs $80/per partner initially.  
3. 3 months of anticipated expenses - April 1-June 30th - $270.

Total initial buy in is $1,850.  Note, the partnership is managed by 2 partners (Dan De Federicis and Pat Stickney) who pay their full rate and do not take a fee.  We will bill quarterly for ongoing expenses after June 30th - approximately $90/mo $270/quarter assuming no unanticipated expenses such as an injury.  Purse winnings, which are paid on a sliding scale through 5th place, would lower monthly costs and ideally ultimately would create profits.  

Disclosures: Gray Riders believes in transparency so let me tell you some of the risks and other important information

• I can’t say this enough – this is HIGH RISK. There are no guarantees in this business. These are fragile animals and sometimes bad things happen, like an injury that costs a lot of money to treat, so when that happened in the past my money was going out but certainly none was coming in because the horse wasn’t racing for a while. Understand that if you’re in the business long enough you will see plenty of both good and bad so you should keep your expectations real and be prepared for anything.

• The horse is not insured, so if an injury or illness ends her career, you have to deal with the fact that the horse has limited or no value. 
• The NYS Racing & Wagering Board requires licensure (including fingerprints & photographs) for all partners. THIS IS AN ADDITIONAL, INDIVIDUAL EXPENSE.
• Although you are an owner, the managing partner (in this case trainer Kerry Metivier, who will retain a majority share) makes all business decisions and the Trainer makes all decisions regarding care and race readiness. We will have all partners sign the LLC operating rules agreement so there is no misunderstanding about rights, responsibility, decision-making authority etc.  

Despite the costs and risks, owning a racehorse is fun and exhilarating and I love it! Feel free to call or email back if you have questions and I’ll answer them to the best of my ability. For those of you that have hung in there and read all of this, thanks for reading this.  Again, feel free to contact me if you would like to go see the filly,which is presently training at the Oklahoma Training track right here in Saratoga Springs. 

Dan De Federicis  [email protected]

518-378-6157