In a landmark move for American thoroughbred racing, Churchill Downs Inc. has secured a deal to acquire the intellectual property rights to the Preakness Stakes, one of the sport's most celebrated events. The company announced on Tuesday that it will pay $85 million to purchase the trademarks and associated rights from 1/ST Maryland LLC, an affiliate of 1/ST Racing.
Strategic Acquisition Expands Racing Portfolio
This transaction brings the Preakness Stakes under the same corporate umbrella as the Kentucky Derby, both cornerstones of the prestigious Triple Crown series. Churchill Downs Inc. CEO Bill Carstanjen emphasized the strategic importance of the acquisition, stating it aligns with the company's goal of investing in premier racing assets with long-term growth potential.
"This acquisition adds one of the most iconic brands in American sports to our portfolio," Carstanjen said in a statement. "Keeping ownership of the Preakness intellectual property within the racing industry will support efforts to maximize the event's potential, especially as plans advance to redevelop Pimlico Race Course."
Maryland to Continue Hosting the Race
Under a separate licensing arrangement, Churchill Downs will grant the state of Maryland the rights needed to continue staging the Preakness and the Black-Eyed Susan Stakes in exchange for an annual fee. This ensures that Maryland retains its role as host, preserving the race's traditional location despite the change in IP ownership.
The deal follows a 2024 agreement where Maryland purchased Pimlico Race Course from 1/ST Racing but allowed the company to retain the intellectual property rights. Previously, 1/ST received annual payments and a share of wagering revenue tied to the races.
Triple Crown Scheduling Under Scrutiny
The acquisition comes amid ongoing debates about the future of the Triple Crown schedule. The Preakness has been run two weeks after the Kentucky Derby since 1950, but this timing has faced criticism in recent years. An increasing number of Derby winners, such as Rich Strike in 2022 and Sovereignty in 2025, have skipped the race due to the short turnaround.
Industry discussions are exploring potential changes, including moving the Preakness to three weeks after the Derby as early as 2027. This adjustment aims to encourage greater participation from top horses and could prompt further shifts in the timing of the Belmont Stakes.
Media Rights and Future Developments
Media rights for the Preakness are also in flux, with NBC's contract set to expire after this year's running. Future negotiations are expected to be influenced by any calendar changes, with multiple bidders, including Fox, Amazon, and Netflix, expressing interest in securing the next rights deal.
This year's Preakness will not be held at Pimlico due to redevelopment efforts at the 156-year-old track. Instead, it is scheduled for Laurel Park in Maryland suburbs, with attendance capped at fewer than 5,000 spectators under limited-capacity conditions.
The transaction is expected to close after the 2026 running of the Preakness, pending customary conditions. Churchill Downs plans to fund the purchase using cash on hand and its existing credit facility.
The Triple Crown remains one of the most challenging feats in U.S. sports, with only 13 horses having swept the Derby, Preakness, and Belmont since Sir Barton in 1919. This deal underscores the enduring value of these iconic races despite broader challenges facing the horse racing industry.
