Churchill Downs Acquires Preakness Stakes Intellectual Property for $85 Million

Churchill Downs Incorporated announced on Tuesday that it has entered into an agreement to acquire the intellectual property (IP) rights for the Preakness Stakes and Black-Eyed Susan Stakes from 1/ST Racing’s Maryland department for $85 million. The transaction is subject to customary closing conditions.

The Preakness Stakes, held annually in Maryland, is the second jewel of the Triple Crown series, following the Kentucky Derby. Churchill Downs, which hosts the Kentucky Derby, plans to license the rights back to the state of Maryland each year to continue staging the races.

The parties anticipate closing the deal after the next Preakness Stakes, scheduled for May 16, 2026. This year’s race will take place at Laurel Park as Pimlico Race Course in Baltimore undergoes a significant reconstruction project.

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 maintaining ownership of the Preakness intellectual property within the racing industry will support efforts to maximize the potential of a redeveloped Pimlico and the Preakness Stakes within the broader sports and entertainment landscape.

This agreement follows recent reports that the Preakness Stakes may shift its date back by a week in May, a topic 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, no formal discussions have yet occurred with Churchill Downs or the New York Racing Association regarding the race date.

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

The acquisition of the Preakness Stakes intellectual property by Churchill Downs represents a significant consolidation of premier thoroughbred racing assets, potentially impacting the future management and promotion of the Triple Crown series.

The transaction underscores Churchill Downs’ commitment to preserving and enhancing the legacy of American thoroughbred racing while adapting to evolving industry dynamics and infrastructure developments.