Another Twist in the Preakness Stakes Saga: Maryland Strikes Back!

Casual horse racing fans have bemoaned the absence of a Kentucky Derby winner in the second leg of the Triple Crown. Hopefully, you have not completely checked out of the Preakness Stakes, because the behind-the-scenes drama continues to deliver.

The week before the Kentucky Derby, Churchill Downs Inc. announced the purchase of the IP rights to the Preakness Stakes for $85 million. Bill Carstanjen, the CEO of CDI, was excited to invest in horse racing by adding “one of the most iconic brands in American sports to our portfolio.” In this acquisition, CDI would license the Preakness Stakes to the state of Maryland for an annual fee.

The Baltimore Sun reports that the state of Maryland is considering using its right of first refusal. They can match the deal made by CDI and purchase the Preakness Stakes and Black-Eyed Susan for $85 million. Maryland is doing its due diligence and has until the third week of June to match the offer made by Churchill Downs Inc.

This situation is nuttier than a Payday.

A week ago, Maryland’s State Treasurer said at a public meeting, “I get the history of horse racing, but at some point, you know, we have to get to it sink or swim. Can it survive? We can’t keep pouring massive amounts of dollars into this industry, just for the third weekend in May.”

That question was asked days after the state pressed the pause button on a $48.5 million deal to acquire Laurel Park.

So, what is it? Is Maryland going to go all-in on horse racing, or let it sink? They’re sending mixed signals, creating one of the most fascinating stories in the sports world.

Costs Rise for Maryland to Retain the Preakness Stakes

Maryland is in the middle of a $400 million plan to completely renovate Pimlico Race Course. To make Laurel Park the state’s training center, it’ll cost around $50 million more. Now, they’re considering spending another $85 million to keep the rights to the Preakness Stakes, rather than spending around $6 million a year for the race’s license.

The pricetag to keep the Preakness Stakes is now north of $500 million. However, if you’re going to spend $450 million on facilities, what’s $85 million more to maintain ownership of your Triple Crown race? They can’t afford to spend all of that money for one race and not own it outright.

It’s a story I will continue to follow closely because it seems like there’s a new shocking turn around every corner. Meanwhile, construction continues on Pimlico Race Course, where the Maryland Thoroughbred Horsemen’s Association recently shared photos of the constrcution progress.