Churchill Downs Buys Preakness IP for $85 Million

Churchill Downs Incorporated, the operator of the Kentucky Derby, announced on Tuesday an agreement to purchase the intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes for $85 million from 1/ST Maryland LLC, marking a significant shift in the ownership of one of horse racing's most storied events.

The deal, which includes all trademarks and associated commercial rights, allows Churchill Downs to add the second leg of the Triple Crown to its portfolio while the Maryland Jockey Club retains operational control of the races. The transaction is expected to close after the 2026 Preakness Stakes and remains subject to an existing licensing agreement with the state of Maryland. Under that arrangement, the state holds an exclusive, perpetual license to the Preakness starting this July, with automatic five-year extensions unless terminated. Payments include a $3 million base fee that increases by 2 percent annually, plus 2 percent of the handle from the Preakness and Black-Eyed Susan days. Last year, those events generated about $140 million in handle, providing context for the financial scale.

Bill Carstanjen, CEO of Churchill Downs, described the...