Churchill Downs announced it has entered into a definitive agreement to acquire the intellectual property, including all trademarks and associated rights, of the Preakness Stakes and the Black-Eyed Susan Stakes from 1/ST Maryland LLC, an affiliate of 1/ST Racing, for $85 million, subject to customary closing conditions.
The acquired rights, referred to as the Preakness IP Rights, will be governed by an Exclusive License Agreement under which Churchill Downs Incorporated will license the intellectual property back to the State of Maryland. This arrangement enables the continued running of both races in exchange for an annual fee.
First held in 1873, the Preakness Stakes is the second leg of the Triple Crown of Thoroughbred Racing. The Black-Eyed Susan Stakes is a prominent race for three-year-old fillies and is traditionally held at Pimlico Race Course on the day preceding the Preakness.
The transaction is expected to close following the 2026 running of the Preakness Stakes. Churchill Downs Incorporated plans to fund the acquisition using cash on hand along with its existing credit facility.
KEY QUOTES:
“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,”
“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.”
Bill Carstanjen, Chief Executive Officer, Churchill Downs
