Maryland Exercises Right to Match $85 Million Offer for Preakness Stakes Intellectual Property

Maryland has formally declared its intention to match an $85 million offer made by Churchill Downs Inc. to purchase the intellectual property rights associated with the Preakness Stakes and Black-Eyed Susan Stakes. This announcement was made by the governor’s office on Thursday, signaling the state’s move to retain control over these prestigious racing events.

In April, Churchill Downs Inc. had reached an agreement to acquire all trademarks and related rights of the Preakness and Black-Eyed Susan Stakes from 1/ST Maryland, an affiliate of 1/ST Racing, for $85 million. The transaction was anticipated to be finalized following the conclusion of this year’s Preakness Stakes.

However, Maryland’s governor’s office has now exercised the state’s right of first refusal to match Churchill Downs’ bid. According to an official statement, this action will secure ownership of the iconic racing assets for Maryland, ensuring the state maintains firm control over its multibillion-dollar horseracing industry for decades to come.

The statement emphasized that by owning the intellectual property outright, Maryland will avoid the disadvantages of the existing exclusive licensing agreement, which included escalating fees that would have increased costs for the state over time. Instead, the state plans to adopt an operational model prioritizing the health of the horseracing industry and community benefits, aligning with the nonprofit approach of the Maryland Jockey Club.

Funding for the acquisition will come from a tax-exempt revenue bond issued by the Maryland Economic Development Corporation, explicitly excluding the use of general fund tax dollars.

Governor Wes Moore highlighted the significance of the Preakness Stakes, stating, “The Preakness Stakes is more than just a race; it is a cornerstone of Maryland’s history, culture, and economy. Our administration has made historic investments to revitalize Pimlico Race Course and secure the long-term sustainability of the Maryland horseracing industry. This decision secures a vital asset for our state, allows Maryland to shape its horseracing destiny, and by leveraging the Preakness’s iconic status and partnering with industry experts to enhance the fan experience, preserve Maryland’s position as a key power player in the Triple Crown for generations to come.”

The governor also noted that this acquisition completes the state’s control over essential Preakness assets, as Maryland already owns Pimlico Race Course, is in the process of purchasing Laurel Park Race Course, and oversees the management of the Preakness Stakes.

Bill Knauf, president and general manager of the Maryland Jockey Club, expressed enthusiasm about the development, stating, “The Maryland Jockey Club is ready to further elevate the Preakness into a world-class, bucket-list event for Marylanders and racing fans worldwide. Additionally, we will work with our strategic partners on exciting new events and entertainment options leading up to Preakness weekend. We also very much look forward to collaborating with our Triple Crown partners.”

David Richardson, executive director of the Maryland Thoroughbred Horsemen’s Association, praised the move, saying, “By bringing the Preakness under Maryland ownership, (the governor) has helped ensure that the benefits, growth and legacy of this world-class event remain here for the people of Maryland.”

Timothy L. Keefe, vice president of the Maryland Thoroughbred Horsemen’s Association and a board member of the Maryland Jockey Club, added, “This decision protects one of Maryland’s most valuable assets while creating long-term stability for our racing and breeding industries. We appreciate Gov. Moore’s willingness to take a thoughtful, forward-looking approach that strengthens Maryland racing and safeguards the future of the Preakness for decades to come.”