Churchill Downs to acquire Preakness Stakes intellectual property rights in an $85 million transaction

LOUISVILLE, Ky. (ABC 36 NEWS NOW) — Churchill Downs Incorporated has entered into a definitive agreement to acquire the intellectual property rights of the Preakness Stakes and Black-Eyed Susan Stakes for $85 million.

The company announced Tuesday that it is purchasing the trademarks and associated rights from 1/ST Maryland LLC, an affiliate of 1/ST Racing.

Under an exclusive license agreement, Churchill Downs will license the intellectual property rights back to the State of Maryland. This will allow the state to conduct the running of the Preakness Stakes and Black-Eyed Susan Stakes in exchange for an annual fee, a release from the company read.

The Preakness Stakes, first run in 1873, is the second leg of the Triple Crown of Thoroughbred Racing. The Black-Eyed Susan is a leading race for 3-year-old fillies traditionally conducted at Pimlico Race Course on the day before the Preakness.

“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,” Bill Carstanjen said.

Carstanjen, the chief executive officer of Churchill Downs Incorporated, said keeping ownership of the Preakness intellectual property in the racing industry will support efforts to fully realize the potential of a redeveloped Pimlico and Preakness Stakes.

The transaction is expected to close after the running of the 2026 Preakness Stakes. Churchill Downs will fund the purchase with cash on hand and the company’s existing credit facility, the company detailed.