Preakness rights sold to Churchill Downs for $85M

BALTIMORE — 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, but the agreement doesn’t threaten Maryland’s plans to keep the races in Baltimore.

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.

While it doesn’t change Maryland’s hold on the Preakness, it does mean the state will pay Churchill Downs instead of 1/ST Racing — which is part of The Stronach Group — for the rights to the Preakness name and brand.

Churchill Down’s acquisition is part of the fallout from Maryland’s breakup with Stronach, which owned Pimlico Race Course for years and held rights to the Preakness Stakes intellectual property.

In 2024, Maryland essentially took control of thoroughbred racing from Stronach. In a deal approved by the Board of Public Works, Pimlico — the longtime home of the Preakness that is currently under construction — was sold by 1/ST to a state-created authority.

But Maryland didn’t acquire the rights to the Preakness name and brand in the deal. Rather, a state authority leased those rights from 1/ST, plus the rights to the Black-Eyed Susan Stakes brand, for a fee starting at $3 million annually and escalating by 2.5% each year thereafter. Under the deal, 1/ST was also to receive 2% of the races’ handles.

Under the terms of Tuesday’s agreement, 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.

The state and city fought for years to keep the Preakness in Baltimore.

State law requires the Preakness to remain in Maryland and limits when it can be moved from Pimlico, such as during this year’s rebuilding of the Baltimore track.

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.

With its $400 million Pimlico rebuild, Maryland is hanging on to the Preakness and trying to remain a vital player in the horse racing industry.

“What’s happening is the industry is really dividing more starkly than ever before into the haves and have-nots,” said Joe De Francis, former majority owner and CEO of the Maryland Jockey Club. “The haves are thriving, and the have-nots are withering and dying, and Maryland is on the cusp and can go either way,” De Francis said.

He said Maryland maintains the “raw materials,” including the Preakness, breeding industry, and farms — to succeed.

Buying intellectual property involves transferring ownership of intangible assets, such as patents, trademarks, copyrights, or trade secrets, from a seller to a buyer, typically through an assignment agreement, according to the national law firm Kilpatrick Townsend & Stockton. The purchase grants the buyer exclusive rights to use, sell, or license the asset, often to strengthen market position, avoid infringement, or gain new technology.

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

Gov. Wes Moore said through a spokesperson that his administration hoped to engage with Churchill Downs.

“The Maryland thoroughbred industry is vital to Maryland’s economy, its culture, and its history, with the Preakness Stakes being our crown jewel,” said spokesperson Ammar Moussa.

“In partnership with the General Assembly and industry stakeholders, the Moore-Miller Administration is undertaking a historic investment in securing the future of Maryland horse racing through the redevelopment of Pimlico Race Course and the acquisition of Laurel Park. In the coming weeks, we look forward to engaging with Churchill Downs to learn more about this agreement, discuss opportunities for partnerships, and better understand their vision to grow this industry in Maryland and strengthen the future of Preakness in Baltimore.”

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

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

On Monday, the Maryland Stadium Authority voted to purchase the 229-acre Laurel Park racetrack from The Stronach Group for $48.5 million. After hosting next month’s Preakness Stakes — relocated while Baltimore’s Pimlico Race Course undergoes a $400 million renovation — the Anne Arundel County venue is to be transformed into a statewide thoroughbred training center.

“The board’s action today is significant and truly transformational for a number of reasons,” Maryland Stadium Authority Chairman Craig Thompson said in a statement. “The citizens of Maryland and beyond should be proud of the teamwork, diligence, and commitment to financial prudence that led to this important vote.”

The purchase, originally approved in January, enables the state to pivot thoroughbred training operations to Laurel Park while focusing on hosting ship-in racing events at Pimlico. The board also discussed upgrades to Laurel Park’s aging horse barns and clubhouse, as well as widening nearby Brock Bridge Road for easier access and woodland and wetland mitigation measures. Maryland has leased Laurel Park since January, 2025.

The stadium authority expects to spend up to $120 million on the purchase and upgrades to the Laurel track.