Churchill buys Preakness intellectual property rights from 1/ST Racing
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Churchill Downs Inc. has reached a deal to acquire the intellectual property rights to the Preakness Stakes from 1/ST Racing and Gaming for $85 million, the company announced on Tuesday, a transaction that will end 1/ST Racing’s connection to Maryland racing for good.
Under the agreement, which also included the intellectual property (IP) rights to the Black-Eyed Susan Stakes, run the Friday prior to the Preakness, Churchill will “license to the state of Maryland the intellectual property rights necessary to conduct the running” of the two races “in exchange for an annual fee,” according to a release from Churchill.
Representatives of CDI and 1/ST refused to comment on Tuesday morning beyond releases announcing the deal. The CDI representative noted that company officials are expected to elaborate on the deal during a conference call on Thursday morning to discuss the company’s first-quarter earnings.
In 2024, the state of Maryland reached a deal to purchase Pimlico Racecourse, the site of the Preakness Stakes, from 1/ST Racing and establish a non-profit company to run racing in the state. As part of that deal, 1/ST retained the IP rights to the Preakness and Black-Eyed Susan Stakes in perpetuity and was granted a flat payment of $3 million a year from the state plus 2.5 percent of all gross wagering on the two cards that supported the races.
In a statement released late on Tuesday, The Maryland Jockey Club (TMJC) and the state operating authorities said that the organizations had been “notified” of the sale. The statement stressed that the sale of the rights “does not affect TMJC’s right to full operational control and responsibility” for the Preakness and Black-Eyed Susan, and it said that the deal would not impact the TMJC’s media rights to the Preakness, which includes the broadcast rights to the race.
NBC’s broadcast rights to the Preakness expire after this year’s race, and discussions over the rights are expected to include the possibility of moving the Preakness to a position three weeks after the Kentucky Derby, under the theory that the move would attract more Derby runners to the race.
NBC currently holds the rights to the Derby through 2032. Fox Sports holds the rights to the third leg of the Triple Crown, the Belmont Stakes, through 2030.
The deal was announced one day after the Maryland Stadium Authority, which technically owns Pimlico, approved a deal to purchase Laurel Park from 1/ST to convert the track into a year-round training facility. That deal, which was announced earlier this year, was for $48.5 million.
The state was previously exploring a plan to build a training center at a farm approximately 30 miles from Pimlico. In a release, Maryland Gov. Wes Moore said on Monday that the deal to purchase Laurel would save the state approximately $50 million when compared to the expense of developing the new training center.
“By acquiring Laurel Park and establishing it as our statewide training hub, we are delivering a smarter, more cost-effective path to a world-class racing future,” Moore said, in a release. “This agreement is cost-effective, creates a sustainable home for our horsemen, and ensures that the Preakness Stakes and Maryland racing remain global icons of excellence for generations to come.”
Pimlico is currently being redeveloped, and this year’s Preakness will be held at Laurel under spartan conditions, with ticketing limited to 4,800.
CDI and 1/ST said that the IP rights deal was expected to close after this year’s Preakness.
In a release, Belinda Stronach, the chief executive officer of 1/ST, said that the transaction would bring together “two prestigious racing brands” and would be a “significant step toward the successful longevity and growth of the American Triple Crown of Thoroughbred racing.”
Once one of the largest racing companies in the U.S, 1/ST has divested itself of most of its racing properties over the last decade but still owns and operates two of the most prestigious tracks in the U.S. – Santa Anita Park in Southern California and Gulfstream Park in Hallandale Beach, Florida.
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“We remain focused on our core assets in California and Florida and supporting a strong and sustainable future for the sport,” Stronach said in the statement.
Bill Carstanjen, the chief executive officer of CDI, said in a release that the deal will add “one of the most iconic brands in American sports to our portfolio.”
“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,” Carstanjen said.
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