Churchill Downs to Purchase Intellectual Property Rights of Preakness Stakes and Black-Eyed Susan Stakes

(AsiaGameHub) –   Churchill Downs has confirmed it is moving forward with a plan 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

Per an official press announcement, the company has entered into a definitive agreement with 1/ST Maryland LLC, the current owner of the assets, to purchase the aforementioned assets in a single $85-million transaction.

Churchill Downs has centered its investments on the horse racing sector, its long-time core area of business, as the company continues pursuing industry consolidation even amid broader headwinds facing the sector. Company CEO Bill Carstanjen confirmed this approach in the official statement outlining the deal:

“This acquisition adds one of the most iconic brands in American sports to our portfolio and aligns with our strategy of investing in premier Thoroughbred racing assets that carry long-term growth potential.”

The acquisition is driven not only by a goal to control key assets within the thoroughbred racing ecosystem, but also by a desire to further develop and leverage the value of the brand.

Carstanjen also highlighted potential opportunities tied to the redevelopment of Pimlico and the standing of the Preakness Stakes within the Triple Crown framework.

However, the Preakness intellectual property rights are bound by an existing exclusive license agreement, which means Churchill Downs will need to license the rights to run 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 permanent fixture on the horse racing calendar and a major opportunity across the industry. First run in 1873, it has served as the second leg of the Triple Crown since the series was established.

The outgoing rights holder, 1/ST Chairman and CEO Belinda Stronach, shared that her company has served as steward of the Preakness Stakes’ intellectual property rights, but with the 151st running of the event approaching, this chapter will close as the company refocuses its efforts elsewhere.

“We remain focused on our core assets in California and Florida and supporting a strong and sustainable future for the sport,” Stronach concluded.