Racing Victoria – Lease of a Racehorse (up to 10 Lessee) Page 1 of 14
RACING VICTORIA LIMITED
ACN 096 917 930
Owner Services
400 Epsom Road
Flemington VIC 3031
Telephone: 1300 139 412
Facsimile: (+61 3) 9258 4366
What is a Racing Lease?
A racing lease is a contractual agreement between a lessor(s) and the lessee(s), whereby the lessee pays the lessor a
rental fee for the use of a racehorse. Given that a racing lease is a legally binding contract, it is strongly advised that parties
seek independent legal advice when entering into a lease.
For simplicity within this ‘Lease of a Racehorse’ form, the lessor will be referred to as the owner.
Are there different types of Racing Leases?
Yes, there is an Option A Lease and an Option B Lease.
1. OPTION A LEASE
An Option A Lease is one in which the lessee pays the owner a rental percentage. Furthermore, Racing Victoria will
distribute all prizemoney won by the horse to the managing lessee only, regardless of whether a lessee includes his or her
bank account details within this application. It is then the responsibility of the managing lessee to distribute the owner’s
rental percentage to the owner, and prizemoney to the members of the lessee group.
2. OPTION B LEASE
An Option B Lease is one in which an owner is included as a member of the lessee group in order to enable that owner to
receive his or her rental percentage directly from Racing Victoria. Furthermore, each lessee will receive his or her portion of
prizemoney directly from Racing Victoria. There can only be a maximum of twenty (20) lessees within the lessee group,
including any owners that elect to be lessees for prizemoney purposes. Generally, an owner who places themselves within
the lessee group for prizemoney purposes will not be the managing lessee.
Please note: If a lessees fails to provide his or her bank account details for prizemoney purposes, this application
form will be considered incomplete. In this instance, the application form will be returned to lessee for completion.
Ensuring an Option B Lease is legally binding without the declaration of a rental percentage?
Should the parties elect to enter into an Option B lease, a nominal rental fee (otherwise known as a small or insignificant
fee) of one dollar ($1.00) per annum will automatically apply. This nominal rental fee represents the consideration payable
by the lessee to the owner. In the event that the parties agree to enter into a lease that provides for another form of
consideration, the parties may request that the nominal rental fee not automatically apply. Given that consideration is
required for a lease to be considered legally binding, parties should seek independent legal advice as to the terms of any
lease to be entered into.
What if a Dispute arises?
A lease is a private agreement between owner(s) and lessee(s) which creates proprietary interests between the parties to
the lease. Racing Victoria is not a party to the lease, its only role is to manage its ownership registration system, ensure
compliance with the Rules of Racing and determine the eligibility of horses to race.
In the event of a dispute, Racing Victoria is able to offer a mediation service in order to assist the parties to resolve any
dispute. However, Racing Victoria does not have the jurisdiction to determine the private rights of parties in a lease dispute.
Accordingly, if any dispute arises concerning a lease it is a matter for the parties and it is advisable that the parties seek
independent legal advice in the case of a dispute.
Review Process
If any information requested within this document is not submitted, this application may be considered incomplete. In this
instance, incomplete application forms will be returned via email or post to the managing lessee. Please allow ten (10)
working days for this application to be reviewed.
Lease of a Racehorse
(For up to 10 Lessee)