Agreement would add the second leg of the Triple Crown to Churchill Downs’ racing portfolio, which already includes the Kentucky Derby
Churchill Downs Incorporated (CDI) has entered into a definitive agreement to acquire the intellectual property rights of the Preakness Stakes and Black-Eyed Susan Stakes for $85 million.
Subject to customary closing conditions, CDI will purchase the rights from 1/ST Maryland, an affiliate of 1/ST Racing.
The agreement includes all trademarks and associated rights for the two horse races at Pimlico Race Course, with CDI licensing the intellectual property rights necessary to conduct the running of the Preakness Stakes and Black-Eyed Susan Stakes to the State of Maryland in exchange 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 CDI CEO Bill Carstanjen. “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.”
First run in 1873, the Preakness Stakes is the second leg of the Triple Crown that takes place annually on the third Saturday in May at Pimlico Race Course in Baltimore, Maryland, while the Black-Eyed Susan is a leading race for three-year-old fillies that traditionally takes place the day before Preakness.
CDI is already the home of the Kentucky Derby, the first leg of the Triple Crown, which is preceded by the two-week long Kentucky Derby Festival.
The transaction is expected to close after the running of the 2026 Preakness Stakes, and will be funded with cash on hand and the company’s existing credit facility.
Shares in Churchill Downs Incorporated (NASDAQ:CHDN) closed at $90.84 per share in New York Tuesday.