Churchill Downs agrees to acquire rights to Preakness

Churchill Downs Incorporated announced Tuesday it has entered a definitive agreement to acquire the intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes for $85 million, a deal that places brand ownership of two of the three Triple Crown races with the same company.

The transaction, subject to customary closing conditions, sends all trademarks and associated rights from 1/ST Maryland LLC, an affiliate of 1/ST Racing, to CDI. The parties expect the deal to close after the running of the 2026 Preakness Stakes on May 16.

Under an exclusive license agreement, CDI will license the intellectual property rights to the State of Maryland for an annual fee, allowing the state to continue conducting both the Preakness and Black-Eyed Susan.

"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," CDI chief executive Bill 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."

For 1/ST, the sale marks an exit from Thoroughbred racing in Maryland. Chairman and CEO Belinda Stronach framed the agreement as a handoff that strengthens the sport's signature series.

"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 said in a statement. The transaction, she added, "closes our company's Thoroughbred racing chapter in Maryland."

Stronach thanked the fans, the State of Maryland, the City of Baltimore and industry stakeholders for their support of the Preakness. Going forward, 1/ST will concentrate on its core assets in California and Florida.

The Preakness, first run in 1873, serves as the second leg of the Triple Crown. Pimlico has hosted the race since 1909. The Black-Eyed Susan, traditionally staged the day before the Preakness, stands as one of the leading races in North America for 3-year-old fillies.

CDI said it will fund the acquisition through cash on hand and its existing credit facility.