Churchill Downs buys Preakness for $85 million

A $85 million deal to buy the Preakness Stakes, one of American horse racing's Triple Crown events, was revealed by Churchill Downs Incorporated (Rob Carr)

(Rob Carr/GETTY IMAGES NORTH AMERICA/Getty Images via AFP)

Churchill Downs Incorporated has entered an agreement to purchase the Preakness Stakes for $85 million, uniting two major events of American horse racing's Triple Crown, the buyers announced on Tuesday.

The deal, set to close after next month's Preakness, would bring together under one group the Kentucky Derby, raced annually on the first Saturday in May at Churchill Downs in Louisville, and the Preakness, traditionally staged two weeks later at Pimlico in Baltimore, Maryland.

Maryland would continue to be the site of the race under an outline released by CDI.

Together with the Belmont Stakes in June in suburban New York, the races form US flat racing's Triple Crown, the dream sweep for three-year-old thoroughbreds.

"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," CDI chief executive officer Bill 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."

The deal with 1/ST Maryland LLC, an affiliate of 1/ST Racing, also includes the Black-Eyed Susan Stakes race, an event for fillies on the eve of the Preakness.

CDI would lease back the rights to the Preakness, first contested in 1873, to the state of Maryland for an annual fee to continue to run the Preakness at Pimlico, which is being renovated, or whatever track the state selects, according to plans outlined by CDI.

"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," 1/ST chairman and chief executive officer Belinda Stronach said in a statement.