Churchill Downs Incorporated has entered into an agreement to acquire the intellectual property, including all trademarks and associated rights, of the Preakness Stakes and Black-Eyed Susan from 1/ST Maryland LLC, the company announced Tuesday morning. The purchase price was $85 million and the deal is subject to customary closing conditions.
Under the terms of the deal, CDI will license to the state of Maryland the intellectual property rights necessary to conduct the running of the Preakness Stakes and Black-Eyed Susan Stakes 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 Bill Carstanjen, Chief Executive Officer of CDI. “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 transaction is expected to close after the running of the 2026 Preakness Stakes.
In an additional statement sent to the TDN, Churchill Downs said, “CDI will acquire the intellectual property rights to the Preakness Stakes and the Black-Eyed Susan Stakes, but there is no change in the ownership or operations of Pimlico racetrack or Thoroughbred racing in Maryland as a result of this transaction. We remain enthusiastic supporters of the event.”
The Maryland Jockey Club issued its own statement concerning CDI's acquisition of the Preakness intellectual property rights later on Tuesday.
The press release read: “The Maryland Stadium Authority (MSA), in partnership with the Maryland Economic Development Corporation (MEDCO) and The Maryland Jockey Club (TMJC), is overseeing the transformation of Pimlico Race Course, home of the Preakness Stakes, into a year-round racing facility, and acquiring Laurel Park to serve as the training center. These multi-year investments in Maryland horse racing will deliver economic benefits to the state for many years to come and ensure the stable future of Maryland racing.
“The State of Maryland has been notified by 1/ST Maryland LLC/The Stronach Group that they have reached a tentative agreement to transfer the intellectual property for the Preakness Stakes to Churchill Downs. That announcement of that intended transfer does not affect TMJC's right to full operational control and responsibility for the Black-Eyed Susan and Preakness Stakes, both of which will be held at Pimlico Race Course beginning in 2027.
“TMJC also controls the media rights and licensing for the Preakness Stakes, as identified in the Master Agreement between the State of Maryland and 1/ST Maryland LLC, dated June 28, 2024. None of that is affected by the potential Churchill Downs transaction.
“TMJC retains full control of the racing calendar and day-to-day operations for Maryland racing at both Laurel Park and the soon-to-be-rebuilt Pimlico Race Course.”
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