Greg Luther's Amazing Catch

[Inside The Track]

Luther is selling racing and breeding shares in Amazing Catch. For 30,000 dollars you get 1/120 share in horse for racing in 2025 and one breeding per year when he goes to stud in 2026. What's the catch?

[Grandstand Handicapper]

He's syndicating the horse (for breeding), for the most part. However, he's taking what he feels is a unique approach in that he's offering financial participation in his racing career.

He has a website:

https://www.amazingcatchinfo.com/about-amazing-catch

If anyone is considering this, my recommendation is---get a copy of the syndicate agreement, and any other agreement you have to sign.

[Harness racer]

Would place his racing and breeding value at 3.6million?  Big gamble for an unknown producer.

[JENNY FROM THE BLOCK]

sold out!

[Harness racer]

Wow!  How many shares does Luther himself own I wonder?

[JENNY FROM THE BLOCK]

just curious did this guy win the lotto? or inherit a big sum of money? i remember he use to only have a few horses. no they buy all high priced horses and yearlings. he idnt do very good back then. (like he never won) and with the cash they spend now they probably should do better. just my opinion.

[Call Sign Merlin]

Is the 120 the total shares or is that the number he is selling.  If it is the total shares then he needs to sell approx half to get all of his upfront money back (I would sell 49% if I were him).  It values the horse at $3.6mm and would essentially own the majority of the horse for free.  Seems like a good deal for him. 

If the horse wins $1mm next year each share gets back $8,300 minus expenses.  Right now the highest stud fee for a trotter in Ohio is $7,500.  I’m guessing this gets set at $10k so under best case it takes 2+ years to breakeven.  Not sure Ohio was the best choice if he was looking for a home run. Doing so much work on the half and 5/8ths has limited the number of grand circuit trotters there.

[Grandstand Handicapper]

sold out!

BS. Salesmanship and posturing. If he's sold out, it's because he decided to only sell 5 shares, and he sold them to 5 friends.

[darnoldrocks]

"I’m guessing this gets set at $10k so under best case it takes 2+ years to breakeven. "

That sounds like a pretty good deal.
If after 3 years you are even, what will the next 10 years of stud service return in profit??

[Kole Hanover]

 The starting valuation is double of what he just paid

 Good gig for him

[ferdinand the bull]

Kudos to Luther for thinking outside the box.
I don't know where his money came from but looks like he's enjoying it

[The Answer]

TCI coming to Ohio standing for 10k and book will be full and closed the day it’s announced. Luther paid for a stud that might be shooting blanks. All serious stud syndications these days are based on fertility first. No one is buying into Amazing Catch as a stud until he passes the fertility test and that won’t happen for another 15 months other than the moron Luther.

[The Thorn]

Luther is a real estate guru.  He even teaches groups and has a big fanbase in that profession.

[gh2009]

He may be a real estate guru, but hasn't done well recently with his purchases like Why Not Now for over $500,000 at the end of last year. He's won virtually nothing this year.

[Call Sign Merlin]

"I’m guessing this gets set at $10k so under best case it takes 2+ years to breakeven. "

That sounds like a pretty good deal.
If after 3 years you are even, what will the next 10 years of stud service return in profit??

My math assumes he makes $1mm racing next year which is pretty aspirational considering the only age horse to that this year is Jiggy Jog.  He essentially has to be Winners Bet.

Profit is 10 years of free breeding - which is he is elite is great.  If he isn’t then not so much.