Palomino Incentive Program
Whether you're a mare owner, stallion owner, or a show or racing competitor, this program can increase your horse's value by paying yearly cash dividends to you.
Purpose:
Increase PHBA membership
Promote stallions and breeders
Increase value of foal
Incentive to mare owners
Show participation increases
Helps pay for show career of foal
Money back to owner, nominator and stallion
owner
The program is designed so that everyone responsible for the success of an outstanding foal is rewarded.
The stallion subscriber, foal nominator and horse's owner all share in the profit.
What Are the Advantages?
* Direct cash return to nominated foal owners for
points earned.
* Increase value of individual stallions and foals.
* Defrays the cost of showing the foal.
* Offers the foal owner an additional value system
other than halter and performance points.
* Provides foal owners a cash incentive to show their
foals.
* 70% of monies paid out by the Palomino Incentive
Program will go to owners of nominated foal.
* Stallion subscriber payback---20%
* Foal nominator receives 10% of foal money
* The one-time nomination fee enrolls the foal in the program.......for life of the foal.
* Increase PHBA membership.
Palomino Incentive Program
The Palomino Incentive Program is an investment and incentive program offered by PHBA for all stallion owners and their Palomino foals registered with PHBA. All participants in the Palomino Incentive Program must be current PHBA members in good standing.
The fees collected for the subscription of stallions to the program and the fees collected for nomination of their foals comprise the Palomino Incentive Program. All funds are maintained in a separate account and are subsequently distributed back in direct proportion to PHBA sanctioned points earned by the foals.
Annual Stallion Nominations Fee postmarked by:
On or before December 31 prior to the breeding season $200
January 1 through December 31 during the breeding season $300
January 1 through August 1 of the foaling year $600
All stallions registered with the recognized breed associations found in the PHBA Handbook are eligible to participate.
A list of Palomino Incentive Program nominated stallions will appear on the PHBA website and/or Palomino Horses Magazine. All enrolled stallions will be listed with owner's address and phone number.
The get of those stallions become eligible for nomination to the incentive program.
With the stallion owner's permission, any PHBA member may pay to subscribe a stallion to the Palomino Incentive Program. The stallion owner, not the indidual paying the subscription fee, then receives the money earned from the stallion subscription for that particular breeding season. A notarized affidavit must be signed by the stallion's recorded owner.
Once a stallion is subscribed, no portion of his subscription fee is refundable, except in the case of the stallion's death or if the stallion is gelded prior to his breeding a mare for the subscribed season. At no time is the subscription fee transferable. The fee makes the stallion's foals resulting from that breeding year eligible for nomination to the Palomino Incentive Program.
One Time Foal Nomination fee postmarked by:
To qualify for these rates, a foal owner nomination form and fees must be postmarked on or before December 31:
Weanling $100
Yearling: $200
Two Year Olds: $400
Three Year Olds: $800
Four and Older: $1,000
(Note: Foals are not eligible unless the sire is subscribed by August 1 of their foaling year.)
This program is designed to begin with a nominated horse's yearling show year. Any points earned by weanlings nominated to the Palomino Incentive Program are not eligible for Palomino Incentive Program monies. All points earned before nomination date on older horses will not be eligible for Palomino Incentive Program monies.
Horses nominated at later ages will only receive Palomino Incentive Program monies from nomination postmark date forward. Earnings will not be distributed retroactively on past PHBA points.
Foals nominated will be verified by a Palomino Incentive Program logo on their registration certificate.
Information for foal owners:
A foal nomination becomes effective when the nomination form, the appropriate fee and the original registration certificate are received in the PHBA office.
A foal nomination fee is not refundable. (Exception: The fee is refundable if the foal dies prior to its 12th month of age and has not earned any points in a PHBA approved event. The original registration certificate and a veterinary statement verifying the foal's death must be received by PHBA prior to the day the foal would have been 12 months old.)
Foals sired by stallions subscribed to the Palomino Incentive Program for the breeding year in which the foal was conceived are eligible to be nominated to the program. These foals must be nominated and the appropriate fees paid before they are eligible to participate.
Once a palomino foal is nominated to the Program, the nomination is for the life of the foal.
The owner or lessee of record may nominate a foal to the Palomino Incentive Program.
Information for mare owners
Though the Palomino Incentive Program does not have specific benefits designed for mare owners, the Program does provide an incentive to participate.
By breeding your mare to a Palomino Incentive Program stallion, you give your future Palomino foal a marketable edge over many other Palominos. A foal that is nominated for Palomino Incentive Program earnings is a more attractive purchase for buyers who intend to show their new horse in PHBA competition or activities, because they have an added opportunity to make money on their investment.
In addition, if your mare is bred to a Palomino Incentive Program stallion, you can nominate and register the resulting foal at the same time.
Even if you choose to sell the foal, you remain it’s Palomino Incentive Program nominator and receive ten (10 %) percent of the foal’s Program earnings for life.
Payout specifics include:
The exact amount of money to be distributed will be determined by PHBA, based on the total money available in the Palomino Incentive Program for a given year, divided by the number of points earned by Palomino Incentive Program nominated horses during that year.
Of the payout, 10% will go to the foal nominator, 20% to the stallion owner and 70% to the foal owner.
Frequently Asked Questions
How do I get involved?
Simply select a stallion from the Palomino Incentive Program Directory to breed to your mare. Then nominate the resulting foal to the Program and begin competing for sanctioned PHBA show points.
How is the money in the Palomino Incentive Program distributed?
The total amount of funds will be divided by the total number of show points earned by enrolled horses. This determines the cash value of each point.
Palomino Incentive Program money is divided and paid annually beginning when a subscribed stallion's foals reach their yearling year.
How is money earned?
Each point earned at a PHBA approved event by a Palomino Incentive Program nominated horse in the Open and/or Amateur division in the show ring is worth a specific amount.
How are the Program earnings calculated?
Each point earned by nominated foals will be multiplied by the dollar value per point to calculate the total earned by Palomino Incentive Program nominated horses.
Calculation of winnings is based on official PHBA show records as of January 31 following the completion of the show year in which the points were earned. Subsequent correction of show results for any reason shall not affect calculations of winnings.
How is the amount of prize money awarded each year determined?
Based on a show career of five years, the total money awarded in any year is determined by the amount of sire subscription money received for the breedings three years previous, and a percentage of the amount of foal nomination fees received for the previous five years.
Each year, PHBA will determine what percentage of the total points earned by horses 5 years of age or younger are earned in each age group, i.e. the percentage earned by yearlings, 2-year olds, 3-year olds, 4-year olds, and 5-year olds. Using those figures, the money collected in foal nomination fees for a given year is paid back to that foal crop over a five year period, with whatever percentage was determined for yearlings in the yearling year, the percentage determined for 2 year olds in the 2 year old year, and so on.
All stallion subscription fees collected for the breeding year of that foal crop are paid out when the yearlings becomes eligible to earn points. For example, the sire subscriptions collected for the 2005 breeding season will be paid back after the completion of the 2007 show year, when the foals conceived in 2005 become yearlings and are eligible to earn PHBA points toward Palomino Incentive Fund monies.
The monies described above, plus the interest earned on it, will be awarded for the appropriate show year. PHBA will mail checks to the respective recipients by March 31 following the show year.
How are funds disbursed?
Out of the sire subscription and foal nomination fees collected and available, for each Open or Amateur point earned at a PHBA approved show, 20% will be awarded to the sire's subscriber for the breeding season in which the foal was conceived, 10% will be awarded to the foal's nominator, and the remaining 70% will be awarded to the point earning nominated horse's recorded owner as of December 31 of the year in which the points were earned.
The previous year's show results not received by February 1 will not be counted when tabulating prize money awarded.
Why aren't the Youth Programs, Novice Amateur and Amateur Select Programs included in the Palomino Incentive Program?
The Novice Amateur and Amateur Select Programs and Youth Programs are not included because the divisions are limited to the age and/or experience of the rider.
Palomino Incentive Program rules and regulations:
(A) Subscription and nomination fees must be received in U.S. funds. Payment is due at the time of nomination and should accompany the form(s).
(B) All enrollment fees must be postmarked by the deadlines stated. No postal meters will be accepted.
(C) All interest and other income earned by the Palomino Incentive Program is added back to the program.
(D) PHBA may invest funds received from stallion and foal nominations in accordance with its current investment guidelines for PHBA's own corporate funds. Earned investment income from a particular year's fund shall be added to the Palomino Incentive Program.
(E) PHBA may deduct accumulated cost of administering the program from the gross proceeds from the stallion and foal nominations, not to exceed 10%.
(F) Any financial audit or review by a certified public accountant of the Palomino Incentive Program accounts and transactions will be conducted in compliance with the PHBA Bylaws & Constitution.
(G) An annual review of the statistics and performance of the Program will be done by the Registration & Transfer & Breeders Committee. The recommendations of that Committee will be forwarded to the PHBA Executive Board for action.
(H) PHBA reserves the right to alter the conditions of all or part of the Palomino Incentive Program as it, in its sole discretion, determines to ensure fairness and equality to all participants. Further, at its sole discretion, PHBA may cancel the program at any time and refund money if it deems participation is insufficient to justify the Program.
(I) All earnings and/or nominations are subject to U S Internal Revenue Service and/or Oklahoma Tax Commission rules and regulations pertaining to withholding of tax and the appropriate reporting. Members should refer to a tax consultant as to how this should be handled under the respective provisions.
(J) Palomino Incentive Program monies payable to a person/entity suspended from membership or show privileges with PHBA will be withheld for the term of the suspension; or funds may be used to pay a participant's delinquent account with PHBA. If suspension continues longer than two (2) years from the date the funds are awarded, such funds will be forfeited and put back into the fund.
(K) An entrant is ineligible to participate in the Palomino Incentive Program where prohibited by law because of legal residence, situs of approved event, or any other basis, and all or the prohibited portion of the earned points or purse money shall be disregarded in calculations for an earned portion of the Palomino Incentive Program.
(L) All disputes arising out of the application or interpretation of any rules or conditions of the Palomino Incentive Program will be decided by PHBA.
Annual Stallion nominations fees postmarked:
Through August 1, 2007 you may nominate your stallion for the
2006 breeding season for $600, which make all 2007 foals eligible.
Through December 31, 2007 you may nominate your stallion for the
2007 breeding season for $300, which make all 2008 foals eligible.
Through December 31, 2007 you may nominate your stallion for the
2008 breeding season for $200, which make all 2009 foals eligible.
This will enable members to participate in the Program as soon as possible.
Points earned by nominated foals will pay premiums in 2007!
ANNUAL STALLION SUBSCRIPTION FORM