Maryland will match bid for Preakness rights

Maryland state government plans to match the $85 million bid by Churchill Downs Inc. to buy the intellectual property rights to the Preakness Stakes.

WBAL-TV reported that the office of Gov. Wes Moore announced the state's plan to exercise its right of first refusal and match CDI's offer. That was confirmed by a news release from the Maryland Jockey Club later in the day.

"By exercising this right, the state of Maryland will secure ownership of these iconic racing assets, ensuring that Maryland remains in firm control of the state's multibillion-dollar horse-racing industry for decades," the governor's statement said.

CDI said the state notified the company of its intention to match the deal, which also covers the intellectual property of the Black-Eyed Susan Stakes (G2) and was struck with 1/ST Racing.

“We understand why the state of Maryland would decide to acquire the Preakness IP rights as a state-owned asset from 1/ST Maryland LLC,” said Bill Carstanjen, CDI's chief executive officer. He said the company remained committed to working with Moore and other Maryland leaders “to fully realize the potential of a redeveloped Pimlico and Preakness Stakes within the Triple Crown and the broader sports and entertainment landscape.”

Owning the IP rights means the state will not have to pay escalated licensing costs.

The acquisition will be funded through tax-exempt bonds, according to the report.

Moore said that with the acquisition, Maryland will control the essential assets of the Preakness. The state already owns Pimlico and manages the Preakness.

“Governor Moore recognized a once-in-a-generation opportunity to secure permanent ownership of one of Maryland’s most important cultural and economic assets,” David Richardson, executive director of the Maryland Thoroughbred Horsemen's Association, said in a release.

“Just as importantly, this acquisition demonstrates that Maryland’s racing industry can invest in its own future, as the cost of the intellectual property will be paid by the racing industry and not the state," he said. "This industry-funded investment converts perpetual payments into permanent ownership, ensuring that the value, growth and legacy of the Preakness remain in Maryland for generations to come.”

“Thank you to Governor Moore and first lady Dawn Moore for their leadership in making one of the most significant industry decisions in Maryland’s history,” said Jim Dresher, chairman of the board of TMJC. “Retaining the Preakness in Maryland safeguards the event’s future, and TMJC and its board of directors are committed to advancing that vision.”

The Preakness Stakes was held at Laurel Park this year because Pimlico is being rebuilt. The second leg of the Triple Crown is expected to return to its traditional home next year.