Peter Horwitz, president, Thoroughbred Racehorse Owners Association (NSW), Sydney has contributed an excellent article to the rights debate which appears in today's Sydney Morning Herald. Peter's article examines the confusion which so often arises between owners and trainers as to what their individual rights are.

"Putting the onus on owners' decisions October 15, 2004

A little help would be much appreciated in the costly business of racehorse ownership, writes Peter Horwitz.

Max Presnell's excellent article in last week's The Form headlined "Owners should own, trainers train" has prompted me to comment on this issue.

Firstly, I should set the record straight and say that 95per cent of trainers (and owners) are doing it tougher in NSW than ever before and any help Racing NSW could give them would be a good thing. Your article last week, and my comments here, are not directed at that 95per cent.

It would appear that there are some in racing who fail to understand the meaning of "equity" or "ownership". With the relationship between owners and trainers, a point to make is that the owner gives a trainer permission to train a horse - the trainer does not give an owner permission to own. This confusion of roles is highlighted in the media, which often refers to Gai Waterhouse's horse Grand Armee rather than Alan Bell's horse Grand Armee.

Turning to the recent topic of owners' or trainers' liabilities, owners who select trainers to train their horse do so knowing the training liabilities they are incurring. But trainers cannot incur liabilities on behalf of owners that are not "known mainstream" training liabilities. Otherwise, where is the line in the sand drawn? Theoretically, an owner could be sent bankrupt if a trainer can legally incur unspecified liabilities on behalf of an owner (or anyone else).

Fortunately, common law does not allow this, however well-meaning and noble the intentions are.

For example, suppose you own an investment property and decide to seek professional advice and management from "Property Experts Pty Ltd". Property Experts find you a tenant. Very good.

But then Property Experts decide your property should be painted beige. They go ahead and get it painted and you're sent a bill for $25,000. You weren't asked but, hey, they're the experts.

Now, you may not have $25,000 - you may even wonder why it was painted it at all - so who's right and who's wrong? This crude example is only to clarify that "owners should own, trainers train".

I think the modern-day version should be "owners should make owners' decisions, trainers make trainers' decisions". Perhaps Racing NSW could articulate and specify these rights in some detail (a standardised contract?). It would be a great help to owners and trainers (and there are plenty of examples of trainers' rights being abused).

While on this subject, there was a recent announcement of a sponsor paying a trainer a large annual sum to promote his product. Sounds good so far. An enterprising move many would say.

Does he plaster the sponsor's signs all over himself, his staff, his stables? Again the question of equity arises. Are the staff employed knowing this is part of their employment contract, are the stables his or the AJC's, and is this covered in their rental agreement?

And finally, the question of the horse - can sponsors' products be promoted via the horses' rug, etc? In the building example, the managing agent could not promote a product on the face of your building without your permission. And the agent would have zero rights to any income from same. And can you imagine the furore and embarrassment if, theoretically, the boss of Coles arrived at Randwick on race day to find his horse had a rug on promoting Woolworths?

So, my answer is a definite NO. The owners of the horse, and they alone, should make that "owners' decision". In fact, any sponsorship money should go to the owners, assuming it is the horse attracting the sponsor, rather than the trainer. If it really is the trainer then great, he has every right to plaster himself all over with the sponsor's logo etc.

Beyond that, the trainer should seek written permission or do a deal with horse owners. With horse owners in this state losing on average 70¢ in every dollar, every little bit helps."

Peter Horwitz, president, Thoroughbred Racehorse Owners Association (NSW), Sydney