Disbursements

With the three recent Pick 6 bets getting five out of six in each of the only three Pick 6 wagers we’ve made, my hope is everyone sees how we’re on the cusp of cashing big. Couple this with the program reaching the point of confidence when the essential algorithms are added by the end of this month, it’s time to discuss money and how we’ll be disbursing it.

In order to reach this point, where I know I can confidently bet for us and win, I’ve hired a team to get us here which has added another 100K to the costs. And through accounting we have determined that our monthly operating expenses will be 10K for the first year. Then at the end of the year we will begin paying equi-stats, the company that owns 60% of Zen Racing Stats and the database that we’re using, $5K a month for the use of this data feed which then will increase our average monthly operating costs to $15K.

All these costs will eventually be paid for from the bets that we make. Though in order to make money, we must invest a sizeable amount of money into our bets and as previously mentioned we’ll eventually average a wager of $2K per race. In order to accomplish this we’ve determined Zen Racing must maintain a betting balance of $200K.

Plan to go into the details of the bets we’re going to be making in a later post however for now in order to clearly relay the business plan, know that 70 to 75% of our wagers will be win-place- and/or show with the other 25% exotics and these will include serial wagers like Pick 6s, 5s, 4s, daily doubles as well as exactas, trifectas, superfectas and probably even E-5s. The stats will tell me when and which ones of these we bet.

Because we’re running a business like any other and the goal is to reach the point of self sufficiency this requires enough money in hand to make these bets which as stated is $200K, enough to cover for the 10K monthly operating costs And to clear the balances due the developers, mathematician and everyone contracted to date to get here. Prior to contracting everyone new we had a balance of $45K due all parties. Adding to this is the $100K for the additional developers recently hired and this increased the balance due to $145K of which we’ve applied $65K towards from the 12 shares offered to our current investors for $6K each. This leaves us 8 shares to make all this work.

Since our massive endeavor is just about to fruition and we’re almost ready to roll we have several potential outside investors chomping at the bit so to speak and currently I am in the process of offering these 8 remaining shares for $50K each.

I’m selective as to who we let in as everyone must follow our structure in order for this to work so I’m not necessarily opening these shares to just anyone and because of this it may take a few months to unfold. Though I did keep some of the investment money back so we have money to bet as soon as the program has the algorithms in so we won’t be delayed. It’s just the amount wagered will be lower than our eventual goal and in line with money on hand. And we won’t get to the point of dividend disbursements until all the mentioned expenditures are met by either winnings from our wagers and/or the $50K per 8 open shares is invested. Once our $200K betting pool is reached and we have enough in hand to cover for the $10K per month operating costs, we’ll begin paying dividends and this is how paying the dividends will be:

At the end of each month we’ll tally the gross income from our bets, minus any money to replenish to maintain the $200K betting pool and deduct the operating expense and all remaining funds will disperse in dividends. To be clear, let’s say we have $100K left after replenishing the betting pool and deducting the $10K monthly operating expense, we’d divide the $100K by 100 (shares) and the dividend paid this month will be $1,000 per share. In other words should an investor own 2 shares, in this scenario this investor would receive $2,000 in dividends for this month. And these dividends are the reason we needed everyone’s tax info because we’re required to issue 1099s for all dividends paid at the end of each year.

This is an exciting time for all of us and we’ve finally arrived! Couldn’t have done any of this without You. For this, your patience and understanding of what it took to get us here, from our heart, we are forever grateful.

Most of all none of this could have happened without Ed and his determination to figure out how to consistently win in this great sport that all of us love.

Thank You Ed !