Churchill Downs is acquiring the intellectual property rights to the Preakness Stakes and the Black-Eyed Susan Stakes in an $85 million deal announced Tuesday, consolidating control over two of thoroughbred racing's marquee events under a single corporate roof alongside the Kentucky Derby.
The company will purchase the trademarks and associated intellectual property from 1/ST Maryland LLC, an affiliate of 1/ST Racing. Maryland will continue staging both races through a separate licensing agreement in which Churchill Downs grants the state rights to run the events in exchange for annual fees, meaning the physical races stay rooted in Baltimore while the brand itself moves east.
The move is the latest chapter in a rapidly shifting ownership landscape for racing's most prestigious circuit. Just last year, Maryland bought Pimlico Race Course from 1/ST Racing but allowed the company to keep control of the Preakness and Black-Eyed Susan intellectual property, which had generated annual payments and a cut of wagering revenue. This deal effectively ends that arrangement.
Churchill Downs CEO Bill Carstanjen framed the acquisition as essential brand consolidation. "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," he said in a statement, noting that keeping the intellectual property within the sport itself would help maximize the Preakness' potential as Pimlico undergoes redevelopment.
The Preakness, first contested in 1873, occupies the second position in the Triple Crown, coming two weeks after the Kentucky Derby and three weeks before the Belmont Stakes. The Black-Eyed Susan, a hallmark race for three-year-old fillies, traditionally runs the day before the Preakness at Pimlico in northwest Baltimore.
The timing of this acquisition aligns with ongoing debate about reshaping the Triple Crown calendar. For nearly 75 years, the Preakness has sat exactly two weeks behind the Derby, but that compressed window has become a sticking point. Multiple recent Derby winners, including Rich Strike in 2022 and Sovereignty in 2025, bypassed the Preakness entirely citing the short turnaround between races.
Industry sources have floated moving the Preakness to three weeks after the Derby, a shift that could begin as early as 2027. Such a change would almost certainly trigger cascading adjustments to the Belmont's schedule, further reshaping one of American sports' most storied competitions.
The deal is also hitting the market as the Preakness' broadcast rights enter uncharted territory. NBC's current television contract expires after this year's running, and the next rights negotiation is expected to hinge partly on calendar changes. Multiple heavyweight bidders, including NBC, Fox, Amazon and Netflix, have signaled strong interest in future media deals, a sign of the race's enduring appeal despite headwinds facing thoroughbred racing broadly.
Churchill Downs plans to fund the $85 million purchase through existing cash reserves and its credit facility. The transaction is expected to close after the 2026 Preakness, subject to standard closing conditions.
Author James Rodriguez: "Consolidating the Derby and Preakness under one roof gives Churchill Downs real leverage to tackle the sport's scheduling mess, but this deal only matters if it actually fixes the calendar problem that's been bleeding top horses away from the second leg of the Triple Crown."
Comments