Istabraq. All it takes is one little word and Irish horse-lovers are instantly reduced to emotional wrecks, or so it seemed last month when the mighty beast bowed out of his last race at the legendary Cheltenham Festival. Una McCaffrey looks at the cost of of owning a racehorse or a dog and what to expect for your money

Thousands of euros in Irish betting money were thrown to the wind when jockey, Mr Charlie Swan, led the three-times Champion Hurdle winner off the Cheltenham course but, in true sporting fashion, the spectators' first reaction was to cheer a hero rather than boo a loser. Another great Irish racing legend was consigned to respected retirement and, undoubtedly, the annals of a few good racing yarns.

Marketing literature produced by Irish Thoroughbred Marketing, the body charged with promoting Ireland as a source of thoroughbred horses, says that "Irish people enjoy an affinity with the horse that is matched nowhere else in the world".

For those of us with more modest means, the thought of extending our financial involvement in horses beyond the betting shop may seem a bit unrealistic

After all, a horse such as Istabraq is worth millions. The reality is, however, that just as all horses do not achieve Istabraq's glory, not all cost a bank vault either.

A more modest model, for example, could be yours for as little as €2,000, with this price rising steadily depending on parentage and other family connections.

Even with a price tag of a couple of thousand, horse ownership remains beyond the reach of the average racing aficionado. But what if 10 such enthusiasts were to team together and split the cost? A simple outlay of €200 will not be missed but the returns could be dramatic, at least in terms of enjoyment.

Mr Bernard Smullen manages the registrations department at the Irish Turf Club, the regulatory body for Irish racing. Between 1997 and 2000, the last year for which statistics are available, syndicate ownership of racehorses rose by almost 40 per cent to 995, with 294 of those being registered in 2000 alone. Since then, the number of operational syndicates is likely to have risen above 1,000, with Mr Smullen handling 30 new syndicate registrations last week alone. Aside from a few basic rules, such as limiting syndicate ownership at 20, members are free to decide how they want their group to be constituted.

"It's becoming a more and more common way to own a racehorse," says Mr Smullen. "You have guys who play golf together, for example, or businessmen. There's a syndicate of priests, you have TDs, senators, guards, firemen, prison officers. There's no limit - they just look on it as a hobby."

Mr Smullen's first reaction to an inquiry on syndicate ownership is to question a given group's capacity to lose money on their "investment".

"The first thing I say is, 'you're not going to make any money out of this. There are lots of drawbacks.'"

The most important thing to bear in mind, according to Mr Smullen, is ongoing expenditure. Irish Thoroughbred Marketing has estimated that it costs about €13,000 to keep a racehorse for a year, taking account of training fees, Turf Club fees, vet charges and travel costs. Suddenly, that €2,000 outlay becomes a lot more expensive, with the bulk of the maintenance fees going to the trainer that a syndicate chooses to take care of its precious property.

Kildare-based trainer Mr Jeremy Harley currently has seven syndicates on his books, with some owning more than one horse. He says that "running costs for horses are rarely dependent on a horse's purchase price or competitive success, with "feeding a slow horse the same as feeding a fast one".

Mr Harley says that syndicates are perfect for racing fans who do not have €20,000 to spend. "They get as much pleasure out of one-twentieth of a horse winning as they would if it was the whole horse," he says.

But not every horse wins, a reality that goes back to Mr Smullen's warnings on the issue.

As well as training a horse to racing fitness, a trainer will also generally make decisions on when and where it will race - decisions that can also have a financial impact, since entry fees apply. A participation fee is in the region of 1 per cent of a race's value.

Mr Harley advises that all syndicates draw up a written agreement before committing themselves to the relationship. This agreement should outline "what happens if things go badly or if things go stormingly well," according to Mr Harley, who himself often guarantees to pick up shares in the horses he trains in the case of syndicate members losing interest. He is also often the person whose name appears on Turf Club registration forms and thus the party culpable under the club's rules.

Once a horse has been farmed out to a trainer, the owner, syndicate or otherwise, tends to take a "hands-off" stance, although there is normally an opportunity to visit during training sessions.

"Some people have no interest but some will come and watch them in the mornings," says Mr Harley. "They enjoy the feeling of being involved in a stable, even if they only own a hair of a horse."

As far as the link between purchase price and potential success is concerned, Mr Harley admits that "if you're prepared to spend $6.5 million, you're more likely to get a racehorse than you are if you spend $1,000.

"I try to encourage them to spend as much as they can because generally the more expensive horses do better than the cheaper horses."

Prize money in horsing circles varies, with some horses having the capacity to earn hundreds of thousands within a couple of years. Additional revenue can also be earned in retirement from breeding. Taking this a step further, some owners choose to forego racing earnings altogether by leasing their horse's competitive years to another party.

Leasing is also open to syndicates and is often offered for free, on condition that the lessee picks up all training and maintenance costs for the duration of the lease. About 60 per cent of Mr Harley's syndicates own horses through a lease of this type, a basis he views simply as "a cheaper way of owning a horse".

Of course, there is another way of owning a racer, provided that you're not choosy as to the species you want to watch rushing around the track. Greyhound racing, long an Irish passion, is also a syndicate sport and one that may require less financial outlay than the horse option.

Mr Peter Franklin, racing promotions manager with the Irish Greyhound Board, advises potential owners to spend at least €2,500 on a racing dog, although recognising that dogs will be available for less.

Competitive greyhounds also carry additional costs - these can amount to as much as €50 per week for top trainers. The significance of this outlay depends on the motivation of the owners, according to Mr Franklin: "You can look at it from the point of view of buying shares or from the point of view of entertainment. I'd advise against it if it's from the money-making point of view."

Websites - Irish Turf Club: www.turfclub.ie; Irish Thoroughbred Marketing: www.itm.ie; Irish Greyhound Board: www.igb.ie