Churchill Downs Buys Preakness Stakes IP for $85M

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Fri Apr 24, 2026, 11:00 am ET

Read Time: 3 minutes

Churchill Downs Buys Preakness Stakes IP for $85M

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Churchill Downs Incorporated has agreed to acquire the intellectual property rights of the Preakness Stakes for $85 million. The deal expands its influence over U.S. horse racing's Triple Crown.

Moreover, it strengthens its commercial control across two major events. The agreement also includes the Black-Eyed Susan Stakes.

However, Maryland will continue hosting the races at Pimlico and Laurel Park. Additionally, the structure keeps the event physically in Maryland. Meanwhile, Churchill Downs gains full control of branding and IP rights.

Churchill Downs and the Preakness Stakes IP deal

Churchill Downs finalized the $85 million acquisition of Preakness Stakes intellectual property. The deal includes trademarks, branding, and media rights. Furthermore, it does not transfer ownership of the racetrack.

Recent filings reveal detailed financial terms for Maryland's licensing agreement. Maryland will pay a base fee of $3 million annually to Churchill Downs. In addition, the fee will increase by 2.5% each year starting in 2028.

Moreover, Churchill Downs receives 2% of total betting handle. This applies to both the Preakness Stakes and Black-Eyed Susan race days. Therefore, the company benefits directly from wagering activity growth. Maryland retains operational control of the physical event.

Nevertheless, Churchill Downs controls commercial and intellectual property rights. Consequently, the deal creates a hybrid ownership structure.

Why is CDI Acquiring the Preakness Stakes Intellectual Property?

Churchill Downs aims to consolidate the Triple Crown's commercial framework. They currently own the Kentucky Derby's branding and rights. Now, it adds the Preakness Stakes to its portfolio. Moreover, the company strengthens its negotiating position in media deals. Bundled rights increase value for broadcasters and streaming platforms.

Additionally, sponsorship packages become more attractive at scale. The deal also introduces potential scheduling changes for the sport. There is growing expectation that CDI may shift the Preakness schedule. Specifically, the race could move three weeks after the Kentucky Derby starting in 2027.

Currently, the Preakness runs two weeks after the Derby. However, this short gap often discourages top horses from competing. Therefore, the change aims to improve Triple Crown participation.

If implemented, the adjustment could reshape racing strategy. Trainers may be more willing to run horses in all three legs.

In turn, this could increase fan engagement and betting activity. The shift would also benefit US horse racing betting sites. More consistent star participation can drive higher wagering volumes. Additionally, clearer narratives may improve race-day betting interest.

Bigger Picture for the Horse Racing Industry

This acquisition signals continued consolidation in horse racing ownership. Churchill Downs now controls two key Triple Crown intellectual properties. Consequently, it gains major influence over the sport's commercial future.

Moreover, financial models now combine licensing fees and wagering revenue. The 2% handle share directly ties earnings to betting activity.

In addition, annual escalators ensure long-term revenue growth. The potential scheduling shift highlights broader industry modernization efforts. Longer recovery time between races may improve competition quality.

Furthermore, it could strengthen the Triple Crown brand globally. Over time, centralized control may reshape how races are marketed and packaged. It may also influence how international audiences engage with U.S. racing.

Ultimately, Churchill Downs positions itself as the sport's dominant commercial force.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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