Churchill Downs Acquires Preakness Rights for 85 million dollars

Churchill Downs Incorporated has reached an agreement to acquire the intellectual property rights to the Preakness Stakes and the Black-Eyed Susan Stakes in a deal valued at $85 million, marking a significant shift in the structure of American horse racing. The purchase positions the Louisville-based company as the rights holder for the first two legs of the Triple Crown, adding the Preakness to its existing ownership of the Kentucky Derby.

The transaction, announced April 21, involves acquiring trademarks and associated rights from 1/ST Maryland LLC, an affiliate of 1/ST Racing. The agreement remains subject to standard closing conditions and is expected to be finalized following the 2026 running of the Preakness Stakes. Churchill Downs announced it plans to fund the deal using available cash and its current credit facilities.

Control of a Historic Race Changes Hands

The Preakness Stakes, first held in 1873, serves as the second leg of the Triple Crown and has long been a central event in American Thoroughbred racing. Traditionally staged at Pimlico Race Course in Baltimore, the race is accompanied by the Black-Eyed Susan Stakes, a major event for three-year-old fillies held the day before.

As part of the arrangement, Churchill Downs will not directly operate the race. Instead, it will grant an exclusive license to the state of Maryland, allowing the event to continue under local management in exchange for an annual fee. This structure ensures that the race remains in Maryland while transferring ownership of its branding and commercial rights.

Bill Carstanjen, CEO of Churchill Downs Incorporated, emphasized the strategic value of the acquisition. “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 said. “In keeping ownership of the Preakness intellectual property in the racing industry, CDI will support efforts to fully realize the potential of a redeveloped Pimlico and Preakness Stakes within the Triple Crown and the broader sports and entertainment landscape.”

Maryland Retains Operational Authority

Despite the ownership shift, day-to-day racing operations will remain under local control. The Maryland Jockey Club (TMJC) confirmed that it will continue managing racing activities, including the Preakness and Black-Eyed Susan, at Pimlico Race Course beginning in 2027.

In a statement, officials clarified the scope of the agreement: “The State of Maryland has been notified by 1/ST Maryland LLC/The Stronach Group that they have reached a tentative agreement to transfer the intellectual property for the Preakness Stakes to Churchill Downs. That announcement of that intended transfer does not affect TMJC’s right to full operational control and responsibility for the Black-Eyed Susan and Preakness Stakes, both of which will be held at Pimlico Race Course beginning in 2027.”

The organization also noted that media rights and licensing arrangements tied to a prior agreement remain unchanged. “TMJC also controls the media rights and licensing for the Preakness Stakes, as identified in the master agreement between the state of Maryland and 1/ST Maryland LLC, dated June 28, 2024. None of that is affected by the potential Churchill Downs transaction,” the statement said.

Maryland’s racing circuit has undergone a period of transition. The 2024 Preakness marked the final edition at the original Pimlico facility, with races temporarily moving to Laurel Park during redevelopment. Plans call for a return to a rebuilt Pimlico in 2027 under a long-term framework that keeps the event anchored in Baltimore.

Industry Implications and Possible Schedule Changes

The acquisition could influence broader aspects of the Triple Crown calendar. Currently, the Preakness is held two weeks after the Kentucky Derby, a schedule that has drawn criticism from some in the racing community. The short turnaround has led several Derby participants, including recent winners, to skip the Preakness.

Discussions have emerged about extending the gap between the first two races. Reports indicate that organizers are considering moving the Preakness one week later, beginning in 2027, which could encourage greater participation from Derby contenders. Any adjustment could also affect the Belmont Stakes, the third Triple Crown race, traditionally run three weeks after the Preakness, depending on future broadcast agreements.

1/ST Racing Signals Exit From Maryland

The deal also represents a strategic shift for 1/ST Racing, which has been involved in Maryland racing for more than two decades through earlier acquisitions tied to Magna Entertainment Corp. The company described the transaction as part of its exit from the state.

Belinda Stronach, chair and CEO of 1/ST Racing, acknowledged the significance of the move. “Bringing together two prestigious racing brands, the Kentucky Derby and the Preakness Stakes, is a significant step toward the successful longevity and growth of the American Triple Crown of Thoroughbred racing,” she said. “The agreement with Churchill Downs Incorporated to acquire ownership of the intellectual property rights of the Preakness immediately following Preakness 151 (this year’s Preakness), closes our company’s Thoroughbred racing chapter in Maryland.”

She added, “1/ST is proud to have served as a steward of the Preakness Stakes and we are grateful to the fans, industry stakeholders, the state of Maryland, the city of Baltimore, and the community for their support. We remain focused on our core assets in California (Santa Anita Park), and Florida (Gulfstream Park), and supporting a strong and sustainable future for the sport.”