Churchill Downs Incorporated buying Preakness Stakes brand for $85 million

LOUISVILLE, Ky. (WDRB) — Churchill Downs Incorporated announced Tuesday that it has reached an agreement to purchase the intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes for $85 million — a move that would bring the brand of thoroughbred racing’s second Triple Crown jewel under Louisville ownership.

The seller is 1/ST Maryland LLC, an affiliate of 1/ST Racing, the Stronach Group entity that had retained the Preakness trademark even after relinquishing day-to-day racing operations in Maryland to a state-run entity last year. Under the agreement, CDI would then license those rights back to the State of Maryland for an annual fee, allowing the race to continue to be run in Baltimore — or wherever Maryland chooses to stage it.

CDI chief executive Bill Carstanjen framed the acquisition in terms of long-term brand value.

"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," Carstanjen said. "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."

The deal arrives at one of the most turbulent stretches in the Preakness’s 153-year history. While 1/ST no longer owns Pimlico — having turned it over to the state — it retained the right to run the Preakness and Black-Eyed Susan through this year. The state acquired Pimlico and razed the old grandstand, with plans to erect a smaller, more modern facility in time to host the 2027 Preakness. In the meantime, this year’s running will be held at Laurel Park, with attendance capped at just 4,800 — a far cry from the 140,000-plus crowds Pimlico drew at its peak.

Louisville | Kentucky | Indiana | Eric Crawford

The race’s place on the calendar is also in flux. Sports Business Journal reported this month that the Preakness could move back one week in 2027, from the third Saturday in May to the fourth, giving horses an extra week of rest after the Kentucky Derby. Maryland Jockey Club president Bill Knauf denied that any change is set, but did not rule it out, saying the organization is “exploring all possibilities for dates and who will be our business partners.”

The scheduling question is tied to the Preakness’s broadcast future. NBC Sports, which has aired the Preakness since 2001, is in the final year of its contract, with Fox Sports, Amazon, and Netflix all reportedly interested in acquiring the rights. The Preakness drew its lowest ratings since 1995 last year after Derby winner Sovereignty skipped the race — the latest in a string of top horses bypassing Pimlico due to the two-week turnaround from Churchill Downs.

Whether CDI’s ownership of the brand gives Louisville more direct influence over those calendar and broadcast negotiations remains to be seen. The transaction is expected to close after this year’s Preakness on May 16. CDI said it will fund the purchase with cash on hand and its existing credit facility.

The Preakness Stakes was first run in 1873. The Black-Eyed Susan, a stakes race for three-year-old fillies, is traditionally held the day before Preakness. The Belmont Stakes, held in New York, completes the Triple Crown.