Preakness rights sold to Churchill Downs for $85M

TL;DR

Churchill Downs has acquired the intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes for $85 million. The deal allows the races to continue in Baltimore under a licensing agreement with the State of Maryland.

Key points

Churchill Downs acquires Preakness Stakes rights for $85 million
Deal includes trademarks and associated rights for both races
Agreement allows races to continue in Baltimore under licensing

Mentioned in this story

Churchill Downs1/ST Maryland LLCBaltimore

Preakness StakesBlack-Eyed Susan Stakes

(Lloyd Fox/Baltimore Sun/TNS)

Churchill Downs has reached a deal to acquire the intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes for $85 million, the company announced Tuesday.

The agreement with 1/ST Maryland LLC, an affiliate of 1/ST Racing, includes all trademarks and associated rights tied to the two races. The deal is subject to customary closing conditions and is expected to be finalized after the 2026 Preakness.

Under the terms, Churchill Downs will license the intellectual property back to the State of Maryland, allowing the races to continue in Baltimore in exchange for an annual fee.

First held in 1873, the Preakness is the second leg of the Triple Crown of Thoroughbred Racing and one of the sport’s most recognized events. The Black-Eyed Susan, a premier race for three-year-old fillies, is traditionally run the day before the Preakness at Pimlico Race Course.

“This acquisition adds one of the most iconic brands in American sports to our portfolio,” Bill Carstanjen, CEO of Churchill Downs, said in a statement.

He said the move aligns with the company’s strategy to invest in high-profile racing assets and supports long-term plans tied to a redeveloped Pimlico and the future of the Preakness.

The purchase will be funded through cash on hand and the company’s existing credit facility.

Officials with the Maryland Jockey Club could not be immediately reached for comment Tuesday,

Churchill Downs, based in Louisville, Kentucky, operates a range of racing and gaming businesses, including the Kentucky Derby, and has expanded in recent years through acquisitions and online wagering ventures.

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Q&A

What is included in the $85 million deal for the Preakness Stakes?

The deal includes all trademarks and associated rights tied to the Preakness Stakes and Black-Eyed Susan Stakes.

When is the deal between Churchill Downs and 1/ST Maryland expected to be finalized?

The deal is expected to be finalized after the 2026 Preakness.

How will Churchill Downs manage the Preakness Stakes after acquiring the rights?

Churchill Downs will license the intellectual property back to the State of Maryland, allowing the races to continue in Baltimore in exchange for an annual fee.