Churchill Downs Acquires Preakness Stakes and Black-Eyed Susan Stakes Intellectual Property for $85 Million

Churchill Downs Incorporated announced on Tuesday that it has entered into an agreement to acquire the intellectual property rights for two of Maryland’s premier thoroughbred horse races: the Preakness Stakes and the Black-Eyed Susan Stakes. The seller is 1/ST Racing’s Maryland division, and the purchase price is $85 million, subject to customary closing conditions.

The Preakness Stakes, the second jewel of the Triple Crown, and the Black-Eyed Susan Stakes are iconic events in American horse racing. Churchill Downs, which hosts the Kentucky Derby, plans to license the rights to these races annually back to the state of Maryland. This arrangement will enable Maryland to continue staging the events even as the Pimlico Race Course in Baltimore undergoes a significant redevelopment.

The transaction is expected to close following the next running of the Preakness Stakes, scheduled for May 16 at Laurel Park. This temporary relocation is due to the ongoing reconstruction of Pimlico Race Course, a major project aimed at modernizing the historic venue.

Bill Carstanjen, CEO of Churchill Downs Incorporated, emphasized the strategic importance of the acquisition. He stated, "This acquisition adds one of the most iconic brands in American sports to our portfolio and is consistent with our strategy of investing in premier thoroughbred racing assets with long-term growth potential."

Carstanjen further noted that by retaining ownership of the Preakness intellectual property within the racing industry, Churchill Downs will support efforts to maximize the potential of a redeveloped Pimlico and the Preakness Stakes. He highlighted the significance of these events within the Triple Crown series and the broader sports and entertainment landscape.

The announcement follows recent reports that the Preakness Stakes may shift its date back by a week in May, a topic that has been under discussion for several years. A spokesperson for the Maryland Jockey Club told The Associated Press that the organization is currently negotiating a new media rights agreement, which could influence the timing of the Triple Crown races. However, the spokesperson clarified that no discussions about the date change have yet occurred with Churchill Downs or the New York Racing Association.

Traditionally, the Preakness Stakes takes place two weeks after the Kentucky Derby, which is held on the first Saturday in May. The Belmont Stakes, the final leg of the Triple Crown, follows three weeks later. The spacing between these races has been a subject of debate within the sport, especially as some owners and trainers of Kentucky Derby winners have recently chosen to skip the Preakness.

This acquisition by Churchill Downs marks a significant consolidation of premier thoroughbred racing intellectual property under one entity. It positions Churchill Downs to play a central role in shaping the future of the Triple Crown series and the redevelopment of Pimlico Race Course, ensuring the continued prominence of these historic races in American sports culture.