Churchill Downs buys rights to Preakness, Black-Eyed Susan Stakes

BALTIMORE – The owners of the first leg of horse racing’s Triple Crown now own the property rights to its second leg.

Churchill Downs Inc. announced Tuesday that it has reached an agreement with 1/ST Maryland LLC to purchase the intellectual property rights for the Preakness Stakes and Black-Eyed Susan Stakes. The $85 million deal includes “all trademarks and associated rights” associated with the two Maryland races.

“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,” Bill Carstanjen, Churchill Downs CEO, said in a statement announcing the purchase.

“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,” his statement said.

The deal is expected to be completed after the running of the 2026 Preakness Stakes.

The intellectual property rights purchased by Churchill Downs remain subject to a licensing agreement from 2024. That year, 1/ST Racing entered into a master agreement with Maryland as part of a deal that includes improvements at the storied Pimlico Race Course and a consolidation of horse racing in the state.

Under that plan, 1/ST, controlled by the Stronach family, transferred control of all thoroughbred horse racing in Maryland to the state. It also transferred memorabilia and trophies and the Maryland Jockey Club.

Stronach also agreed to provide the Woodlawn Vase trophy, awarded to the winner of the Preakness, on permanent loan to the state. The vase, valued at an estimated $7 million, is considered one of the most valuable in sports.

The state also acquired Pimlico Racetrack for $1 and leased Laurel Park for up to four years. Under the lease, the state was to pay $1 for the first year and up to $3.5 million for a fourth year.

The state also received an “exclusive and perpetual license” to the Preakness for an initial 10 years starting this July. The deal automatically extends in five year increments unless terminated by the state. As part of that license, the state is to pay a $3 million base fee that automatically increases by 2% annually. The state would also pay out 2% of the handle from races.

The announcement of the Churchill Downs deal comes a day after Gov. Wes Moore (D) and the Maryland Stadium Authority announced a $48.5 million deal with 1/ST Holdings to purchase Laurel Park. It’s the last facility in Maryland owned by 1/ST and the Stronach family.