Churchill Downs to acquire Preakness rights for $85 million

Churchill Downs Incorporated (Nasdaq: CHDN) has entered into a definitive agreement to acquire the intellectual property rights of the Preakness Stakes for $85 million, a move that consolidates two of the three jewels of Thoroughbred racing under a single entity.

"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.

The acquisition from 1/ST Maryland LLC includes the rights to the Preakness Stakes, the second leg of the Triple Crown, and the Black-Eyed Susan Stakes. The transaction, valued at $85 million, will be funded with cash on hand and the company’s existing credit facility. The premium paid over the undisturbed price was not disclosed.

The deal, expected to close after the 2026 Preakness Stakes, strengthens Churchill Downs' position in the American horse racing landscape. By licensing the intellectual property to the State of Maryland for an annual fee, CDI ensures the historic races continue at Pimlico Race Course while creating a new revenue stream and supporting the redevelopment of the venue. This arrangement keeps the ownership of the Preakness IP within the racing industry, aiming to enhance the event's potential within the Triple Crown and the broader sports and entertainment market.

This article is for informational purposes only and does not constitute investment advice.