Churchill Downs Buys Intellectual Property Rights To Preakness Stakes

In a move that will apt shingle up equine racing’s Triple Crown, Churchill Downs Inc. (CDI), proprietor of nan Kentucky Derby, has bought nan intelligence spot authorities to nan Preakness Stakes, nan 2nd limb of nan Triple Crown, for $85 million.

The transaction is expected to adjacent aft nan moving of this year’s Preakness connected May 16. More specifications whitethorn beryllium disposable connected Thursday erstwhile CDI has its quarterly net call. The Derby will beryllium tally connected May 2.

CDI plans to lease nan authorities backmost to nan Maryland Jockey Club (MJC) for an undisclosed magnitude successful an statement apt akin to nan existent 1 that Maryland has pinch 1/ST Racing, besides known arsenic The Stronach Group (TSG), proprietor of Santa Anita. 1/ST Racing, which antecedently owned Pimlico, leased nan authorities to MJC for $5 cardinal a twelvemonth aft virtually giving nan spot to MJC.

The transaction created much questions than answers astir nan early of nan Triple Crown successful peculiar and racing successful general. Among them:

• Will this alteration nan spacing betwixt nan 3 Triple Crown races? The Preakness has not had nan Kentucky Derby victor successful 2 of its past 4 races, ostensibly because nan turnaround clip of 2 weeks betwixt races was excessively short. People spell to and watch nan Preakness to spot nan Kentucky Derby winner. This could unit a alteration successful nan spacing.
  
• Given nan existent authorities number of $5 cardinal a year, does this move make financial consciousness aliases is location much to beryllium announced, specified arsenic CDI making an finance successful nan rebuilding of Pimlico Race Course aliases immoderate different racing investment? This year’s Preakness will beryllium held astatine adjacent Laurel Park to greatly reduced capacity while Pimlico is being rebuilt. The authorities has committed $400 cardinal to nan project, but is that enough?
  
• Is this a motion that TSG is trading disconnected its racing business part-by-part? It has pushed for decoupling (separating nan gaming and racing licenses) astatine Florida’s Gulfstream Park. And racing successful California, contempt immoderate incremental gains, is struggling pinch section sizes and purses. The Santa Anita Handicap, which 10 years agone was worthy $1 million, now has a purse of $300,000, nan minimum required to beryllium a Grade 1 race. TSG says it remains committed to racing successful Florida and California.
  
• The Preakness’ tv statement pinch NBC ends aft this twelvemonth and pinch nan closure of FanDuel TV’s regular equine racing transmission astatine nan extremity of nan year, intends that racing will beryllium scrambling for caller tv partners. Churchill Downs has a agelong narration pinch NBC and FOX is simply a business partner pinch nan New York Racing Assn., which runs nan Belmont Stakes, nan 3rd limb of nan Triple Crown. How will this acquisition play into it, if astatine all?

“The acquisition adds 1 of nan astir iconic brands successful American sports to our portfolio and is accordant pinch our strategy of investing successful premier thoroughbred racing assets pinch semipermanent maturation potential,” said Bill Carstanjen, main executive astatine CDI. “In keeping ownership of nan Preakness intelligence spot successful nan racing industry, CDI will support efforts to afloat recognize nan imaginable of a redeveloped Pimlico and Preakness Stakes wrong nan Triple Crown and nan broader sports and intermezo landscape.”

This sentiment was echoed by Belinda Stronach, president and main executive of 1/ST.

“Bringing together 2 prestigious racing brands, nan Kentucky Derby and Preakness Stakes, is simply a important measurement toward nan successful longevity and maturation of nan American Triple Crown of thoroughbred racing,” Stronach said. “The statement pinch [CDI] … closes our company’s thoroughbred racing section successful Maryland. 1/ST is proud to person served arsenic a steward of nan Preakness Stakes, and we are grateful to nan fans, manufacture stakeholders, nan authorities of Maryland, nan metropolis of Baltimore and nan organization for their support. We stay focused connected our halfway assets successful California and Florida and supporting a beardown and sustainable early for our sport.”

While nan effect of this woody will return immoderate clip to benignant itself out, 1 point is clear: Churchill has an moreover greater power connected nan early of nan Triple Crown and equine racing.