Churchill Downs has confirmed that it is looking to acquire the intellectual property, trademarks, and associated rights for the Preakness Stakes and Black Eyed Susan Stakes.
Churchill Downs Moves on Preakness Stakes IP and Associated Rights
According to a press release, the company has entered into a definitive agreement with 1/ST Maryland LLC, the current asset holder, to buy the aforementioned assets in a single $85-million transaction.
Churchill Downs has been focusing on investing in the horse racing sector, which has been its primary stomping ground, as the business continues to pursue consolidation despite broader sector headwinds. Company CEO Bill Carstanjen confirmed as much in the official statement detailing the deal:
“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.”
The acquisition is not only driven by an appetite for controlling key assets within the thoroughbred ecosystem, but also by a desire to further develop and leverage the brand.
Carstanjen also noted potential opportunities around the redevelopment of Pimlico and the Preakness Stakes within the Triple Crown framework.
However, the Preakness intellectual property rights sit within an exclusive license agreement, meaning Churchill Downs will need to license the rights for running the Preakness Stakes and Black-Eyed Susan Stakes to the State of Maryland in exchange for an annual fee.
Thoroughbred Horse Racing Sector Holding Its Own
The Preakness Stakes remains a fixture in the horse racing calendar and a major opportunity within the sector. First run in 1873, it has been the second leg of the Triple Crown since its inception.
The outgoing rights holder, 1/ST Chairman and CEO Belinda Stronach, said the company had served as the steward of the intellectual property rights for the Preakness Stakes, but with the event’s 151st running, this chapter would come to a close as the company refocuses its efforts.
“We remain focused on our core assets in California and Florida and supporting a strong and sustainable future for the sport,” Stronach concluded.
