Churchill Downs Incorporated has agreed to acquire the intellectual property for the Preakness Stakes and Black-Eyed Susan Stakes from 1/ST Racing for $85 million. The deal is pending standard closing conditions and will allow Churchill Downs to license rights annually to Maryland for staging these races. The acquisition aligns with the company's investment strategy in premier horse racing assets and will support the redevelopment of Pimlico Race Course. The Preakness is set to occur on May 16 at Laurel Park due to ongoing renovations at Pimlico, with discussions on future date changes also in play. This transaction is pivotal as discussions on media rights continue, impacting Triple Crown scheduling.

By the Numbers
  • Acquisition cost: $85 million
  • Preakness scheduled for May 16
Yes, But

While the acquisition strengthens Churchill Downs' portfolio, there are ongoing concerns regarding the timing of the Preakness relative to the Kentucky Derby and Belmont Stakes. The current race spacing has led to debates among owners and trainers about participating in the Preakness, especially following recent trends of Derby winners opting out.

State of Play
  • Negotiations for a new media rights agreement are underway, potentially influencing future race scheduling.
  • The Preakness remains scheduled two weeks after the Kentucky Derby, amidst ongoing discussions about date changes.
What's Next

The transaction is expected to finalize post-Preakness, and further discussions regarding schedule adjustments will likely hinge on media contracts. Observers will be monitoring how Churchill Downs leverages the Preakness rights moving forward, especially with ongoing concerns around race participation trends.

Bottom Line

The acquisition of the Preakness intellectual property could reshape the future of this iconic race, providing Churchill Downs with significant leverage in the racing landscape while potentially addressing long-standing questions about race scheduling and participation.