Management Fee Increase – 1 August 2024
Dear Clients
With our management fees remaining unchanged for the past 5 years, increasing expenses across our operations require that we increase our monthly management fees for the new racing season 24/25.
We believe our management fee structure is among the most affordable of any syndication or bloodstock business in Australia.
We have held our existing management fee charge of $30 plus GST per client per month at this level since 2018.
Upwards of 90% of our clients currently own 2 or more horses with us, whilst more than 50% of our client base own shares in between 3 to 20 horses with us.
When you divide the monthly management fee by the number of horses owned by each client, the actual cost per horse is particularly low.
Very few other syndication or bloodstock companies offer an all-in-one invoice/statement. Most rely on trainers and other suppliers invoicing directly.
Our system is highly convenient for clients who share in horses across multiple stables and suppliers. This avoids countless individual invoices each month.
Our system enables clients to buy as little as 1% in each horse, another service not readily available from other syndication or bloodstock companies or trainers.
This system however comes with significant risk for OnTrack, as we are directly baring risk by paying suppliers on behalf of all of our clients each month. This exposes our business to the increasing possibility of bad debt.
With increasing costs across the board for us to cover, we will be increasing our management fee to $40 plus GST per client per month, from 1 August 2024.
You will see this adjusted fee appear on your August 2024 invoice/statement which you will receive midway through September.
Thank you for your ongoing support and we wish you a successful 2024/2025 racing season.
Kind Regards
Grant Morgan
CEO & Managing Director
[email protected]
With our management fees remaining unchanged for the past 5 years, increasing expenses across our operations require that we increase our monthly management fees for the new racing season 24/25.
We believe our management fee structure is among the most affordable of any syndication or bloodstock business in Australia.
We have held our existing management fee charge of $30 plus GST per client per month at this level since 2018.
Upwards of 90% of our clients currently own 2 or more horses with us, whilst more than 50% of our client base own shares in between 3 to 20 horses with us.
When you divide the monthly management fee by the number of horses owned by each client, the actual cost per horse is particularly low.
Very few other syndication or bloodstock companies offer an all-in-one invoice/statement. Most rely on trainers and other suppliers invoicing directly.
Our system is highly convenient for clients who share in horses across multiple stables and suppliers. This avoids countless individual invoices each month.
Our system enables clients to buy as little as 1% in each horse, another service not readily available from other syndication or bloodstock companies or trainers.
This system however comes with significant risk for OnTrack, as we are directly baring risk by paying suppliers on behalf of all of our clients each month. This exposes our business to the increasing possibility of bad debt.
With increasing costs across the board for us to cover, we will be increasing our management fee to $40 plus GST per client per month, from 1 August 2024.
You will see this adjusted fee appear on your August 2024 invoice/statement which you will receive midway through September.
Thank you for your ongoing support and we wish you a successful 2024/2025 racing season.
Kind Regards
Grant Morgan
CEO & Managing Director
[email protected]
