Churchill Downs Inc. Purchases the Preakness Stakes

With the Kentucky Derby less than two weeks away, the Triple Crown is receiving a shake-up. Churchill Downs Incorporated (CDI) announced that it will purchase the intellectual property rights to the Preakness Stakes and the Black-Eyed Susan.

CDI is spending $85 million to acquire the second leg of the Triple Crown’s IP rights from 1/ST Racing. The Stronach family is the brains behind that operation, which manages Gulfstream Park in Florida and Santa Anita Park in California. Horse racing fans have been critical of the Stronach’s management of the two historic racetracks, which face future financial uncertainty as the sport shrinks.

With the purchase of the Preakness Stakes and its Friday counterpart, CDI will license the events to the state of Maryland for an annual fee.

“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,” said Bill Carstanjen, Chief Executive Officer of CDI. “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.”

Pimlico is currently in the midst of a $400 million renovation, and the word “renovation” is doing a lot of work. They essentially tore down the entire facility to rebuild a home for the Triple Crown in Baltimore. This year’s race will be held at Maryland’s Laurel Park, and is expected to move back to Baltimore in 2027.

There is one more wrinkle to the timing of all of this. One week ago, Sports Business Journal reported that the Preakness could be moved back to three weeks after the Kentucky Derby. This is the last year that NBC holds the broadcasting rights to the Preakness Stakes. Fox has the rights to the Belmont Stakes through 2030. The two companies are gearing up for a bidding war to control the Triple Crown, and NBC just got a leg up, thanks to its partners at CDI’s purchase of the Preakness Stakes.

When Sovereignty skipped last year’s race and left the Preakness Stakes without a Kentucky Derby winner, change was inevitable. What exactly that looks like is unclear, but Churchill Downs just made a massive power play to take control of two-thirds of the Triple Crown.

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