Churchill Downs Acquires Preakness, Black-Eyed Susan Rights for $85 Million
Churchill Downs will pay $85 million to acquire intellectual property rights for the Preakness Stakes and Black-Eyed Susan Stakes. Under the agreement, which is expected to close after the 2026 Preakness, Churchill Downs will license the race brands back to Maryland in exchange for an annual fee.
1. Deal Terms
Churchill Downs reached a deal to purchase the trademarks and associated intellectual property rights for the Preakness Stakes and Black-Eyed Susan Stakes from 1/ST Maryland LLC for $85 million. The transaction, subject to customary closing conditions, is slated to complete following the 2026 running of the Preakness.
2. State Licensing Agreement
Under the terms of the sale, Churchill Downs will license the Preakness and Black-Eyed Susan brands back to the State of Maryland, which will pay an annual fee to continue hosting both races at Pimlico Race Course. This replaces the previous lease structure where Maryland paid escalating fees and a share of wagering handles to the former rights holder.
3. Strategic Implications
The acquisition adds two of America’s most storied racing events to Churchill Downs’ portfolio, bolstering its high-profile assets ahead of Pimlico’s redevelopment. This move aligns with Churchill Downs’ strategy to secure marquee racing brands and drive long-term growth through expanded licensing revenues.