Shares in the Lime Spyder Racing Team are being offered at the cost of $2,500 each.
The maximum total number of shares that will be sold for a partnership are 100 ($250,000). However, we will begin our initial partnership operation around July 1st with about 30-40 shares sold. The remaining shares will still be available for purchase for $2,500 each, or at a price determined by the original members.
An individual may purchase anywhere from a single share ($2,500) to a maximum of 10 shares ($25,000) in any one partnership. Our philosophy is that we want a wide spectrum of participation thus no individual would have more than a 10% interest in any single partnership. The Managing Partner will be held to these same restrictions.
No cash calls will be made. Your initial payment in purchasing share(s) is the only payment you will make to become a member of the Lime Spyder Racing Team.
The Lime Spyder Racing Team has been organized as a Limited Liability Company (LLC) in the state of Indiana. LLCs offer the legal protection of a corporation for all of its members combined with the ability and opportunity for its members to take advantage of the maximum tax benefits associated with a S Corporation.
Once our operations begin we will claim or purchase multiple horses (3-6) in the general price range of $8,000 - $30,000. Our initial plans expect us to race in Indiana and Illinois and then branch out to The Meadowlands and New Jersey, New York and Michigan. In addition, we are planning on being in the forefront when slot-subsidized harness racing comes to Pennsylvania in the months to come.
The initial operating budget will be broken down as follows:
60 % - To be used to claim and purchase race horses;
35 % - Will be held in escrow to pay for our various training expenses including veterinarian, shipping, blacksmith and other general horse care costs;
5 % - Will be allocated for administrative fees including licensing of the LLC, state and federal filing fees, accounting fees, legal fees, marketing, mailing, web-page design and construction, web-page hosting, advertising, liability insurance if necessary, member’s USTA dues, member’s state fees and dues, membership meetings, etc.
The Managing Partner and the respective trainers of the stable will make all decisions regarding the selection of the horses for the Lime Spyder Racing Team. Members of the team are always welcome to offer suggestions and supply input on prospective purchases and sales.
All purse money that is earned by race horses owned by the Lime Spyder Racing Team will be placed in our corporate accounts at participating race tracks. Members of the Lime Spyder Racing Team will pay no upfront fees to the management team. The management team will only receive a
5 % commission on all purse monies earned and on all horses sold or claimed at a price above their original purchase price. Thus, the management team only will earn any money when the Lime Spyder Racing Team is earning money.
At the end of each quarter, members of the Lime Spyder Racing Team will receive official quarterly statements. At the end of each calendar year, members will vote (1 vote per share) whether anticipated profits will remain in the corporate account to be used to expand the stable of horses, or be declared to be paid out to members as a distribution or dividend.
