Full Breakdown
Churchill Downs Acquires Preakness Stakes for $85 Million
4/21/2026, 10:44:27 PM
Acquisition Details and Implications
Churchill Downs Incorporated (CDI) has announced a definitive agreement to acquire the intellectual property rights to the Preakness Stakes and the Black-Eyed Susan Stakes for $85 million from 1/ST Maryland LLC, an affiliate of 1/ST Racing. This acquisition, which includes trademarks and associated rights, positions CDI to manage the branding and commercial aspects of two of the three races in horse racing's prestigious Triple Crown, alongside the Kentucky Derby, which CDI already owns. The deal is expected to close after the 2026 Preakness Stakes, scheduled for May 16 at Laurel Park, Maryland, due to ongoing renovations at Pimlico Race Course, the traditional venue for the Preakness.
Bill Carstanjen, CEO of Churchill Downs, emphasized the strategic importance of this acquisition, stating, “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.” Under the terms of the agreement, CDI will license the rights back to the State of Maryland for an annual fee, allowing the state to continue conducting both races.
Background and Context
The Preakness Stakes, first held in 1873, is the second leg of the Triple Crown, traditionally taking place two weeks after the Kentucky Derby. The Black-Eyed Susan Stakes, a significant race for three-year-old fillies, is held the day before the Preakness. The acquisition comes amid discussions about potentially shifting the Preakness's date to create a three-week gap between it and the Kentucky Derby, a change that has been debated due to the quick turnaround that has led some Derby winners to skip the Preakness.
Criticism and Opposition
While the acquisition has been framed as a positive development for the future of the Triple Crown, there are concerns regarding the implications for the Preakness's traditional scheduling. Some industry figures, including trainers like Gustavo Delgado Jr., have expressed support for adjusting the timing between the races to allow horses more recovery time. Critics argue that the current two-week interval may diminish the Preakness's competitiveness and appeal.
Official Statements and Responses
Belinda Stronach, Chairman and CEO of 1/ST, remarked on the significance of the deal, stating, “Bringing together two prestigious racing brands, the Kentucky Derby and the Preakness Stakes, is a significant step toward the successful longevity and growth of the American Triple Crown of Thoroughbred Racing.” Stronach also noted that this agreement marks the end of 1/ST's involvement in Maryland racing, as the company shifts focus to its operations in California and Florida.
What's Next
The transaction is anticipated to close following the 2026 Preakness Stakes, with CDI expected to provide further details during an earnings call scheduled for April 23. The future of the Preakness's scheduling and its broadcast rights, particularly as NBC's contract expires after this year's race, remains a topic of interest as various networks vie for the opportunity to broadcast the event.
Verbatim 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,” — Bill Carstanjen, CEO of Churchill Downs Incorporated
- “Bringing together two prestigious racing brands, The Kentucky Derby and the Preakness Stakes, is a significant step toward the successful longevity and growth of the American Triple Crown of Thoroughbred Racing,” — Belinda Stronach, Chairman and CEO of 1/ST Maryland LLC
This acquisition marks a pivotal moment in the landscape of American horse racing, potentially reshaping the future of the Triple Crown and the events surrounding it.
