Published on: April 21, 2026, at 10:40 AM.
Updated on: April 21, 2026, at 10:40 AM.
- Churchill Downs acquires intellectual property rights for the Preakness Stakes
- Funding sourced from available cash and existing credit lines
- Transaction is set to finalize after this year’s race
Churchill Downs (NASDAQ: CHDN) has announced today that it will be acquiring the intellectual property rights linked to the Preakness Stakes for a total of $85 million.
This acquisition positions Churchill Downs to add the second leg of the prestigious Triple Crown to its existing portfolio, which prominently features the renowned Kentucky Derby. The rights to the Preakness are being sold by 1/ST Maryland LLC, a subsidiary of 1/ST Racing. The Preakness Stakes is held at Pimlico Race Course in Baltimore on the third Saturday in May, exactly two weeks following the Kentucky Derby.
The intellectual property rights for the Preakness are subject to an Exclusive License Agreement. Under this agreement, Churchill Downs will license the necessary rights to the State of Maryland for the conduct of the Preakness Stakes and Black-Eyed Susan Stakes in return for an annual fee,” the statement confirms.
The Black-Eyed Susan, typically scheduled for the day before the Preakness, is a major event for three-year-old fillies and serves as the second leg of the Triple Crown for female horses, following the Kentucky Oaks.
Churchill Downs Aims to Revitalize Preakness
The inaugural Preakness took place in 1873, making it one of the older events in horse racing, though it trails the Kentucky Derby by only a few decades. This year marks the 152nd consecutive edition of the Derby, the longest-running continuous sporting event in North America.
Although the Preakness is regarded as a premier race, its popularity has waned in recent years compared to the Derby. However, this trend may present an opportunity for Churchill Downs to rejuvenate the Preakness’s former glory.
“From 2014 to 2019, the Preakness attracted between six million and eight million viewers, but in recent years, this number has dropped below these levels,” noted Jefferies analyst David Katz. “In contrast, the Kentucky Derby’s viewership ranged from 14 million to 16 million during the same period, averaging 17.7 million last year and 16.7 million in 2024. Additionally, attendance at the Preakness ranged from 130K to 140K before the pandemic, peaking in 2017, but post-pandemic numbers have been between 42K and 47K.”
Betting activity for the Derby and associated events has reached record levels in recent years, showcasing Churchill Downs’ skill in attracting attendees for Derby Week activities and maximizing its television contract with NBC for broader viewership. The Preakness is also featured on this network.
A Strategic Move for Churchill Downs
Churchill Downs plans to finance the Preakness acquisition using available cash and a current credit facility. This approach minimizes initial capital outlay and allows the buyer to earn fees from the race and Pimlico Race Course, which is managed by the state of Maryland.
“While this initial investment seems primarily focused on branding rights, we anticipate potential further collaborations with the state, enabling CHDN to apply its operational expertise and create synergies with the Kentucky Derby,” Katz added. “At present, the deal provides a consistent income stream, which should positively influence the company’s stock. We do not see this as a hindrance for future mergers and acquisitions over the medium term, and we regard this, along with continued debt reduction, as key elements to watch moving forward.”
The transaction is anticipated to finalize after the conclusion of this year’s Preakness Stakes.