Photo Courtesy of Preakness Stakes
The State of Maryland announced last Thursday that it will exercise its right to match an $85 million offer for the intellectual property rights associated with the Preakness Stakes and the Black-Eyed Susan Stakes. The rights had been set to be sold by 1/ST Maryland LLC to Churchill Downs Inc., the owner of the Kentucky Derby. However, Maryland retained the right to match any offer for the properties under a 2024 agreement with 1/ST.
The acquisition will be financed through tax-exempt revenue bonds issued by the Maryland Economic Development Corporation. According to the Moore administration, the bonds will be repaid using revenues generated by the races, including wagering, ticketing, and sponsorship proceeds. The administration emphasized that the transaction will not use money from the state’s general fund.
Governor Wes Moore described the Preakness as “a cornerstone of Maryland’s history, culture, and economy” and said ownership of the intellectual property will allow the state to shape the future of the race. The administration noted that Maryland already owns Pimlico Race Course, is preparing to acquire Laurel Park, oversees the Preakness, and controls the state’s racing calendar. State officials said acquiring the intellectual property rights will consolidate control over the race’s essential assets.
The purchase is part of a broader state investment in Maryland’s horse racing industry. Maryland is spending approximately $400 million to redevelop Pimlico Race Course and has committed $48.5 million to acquire Laurel Park for use as a training facility. The Maryland Stadium Authority also previously spent $4.5 million to purchase a Carroll County property for a potential training facility, but later determined that the site was not feasible due to cost and environmental concerns. Pimlico is currently closed for construction, with officials stating that the renovated facility is expected to host the Preakness next May.
Some lawmakers have raised concerns about the financial risks associated with the purchase. Senate Minority Leader Steve Hershey argued that the state should have pursued a long-term partnership with Churchill Downs rather than assuming the debt and operational risk associated with the intellectual property. He also questioned whether the nonprofit organization responsible for Maryland racing will be able to generate sufficient revenue, sponsorships, and national exposure.
The Moore administration said Maryland remains open to working with Churchill Downs and other industry partners on opportunities that support the Triple Crown and the broader horse racing industry. Churchill Downs CEO Bill Carstanjen similarly expressed a willingness to work with Maryland officials and racing stakeholders to maximize the potential of the redeveloped Pimlico and the Preakness Stakes.
The acquisition has received support from organizations including the Maryland Jockey Club and the Greater Baltimore Committee. Greater Baltimore Committee President and CEO Mark Anthony Thomas called the Preakness one of Maryland’s most significant cultural and economic assets, stating that public ownership will help ensure that future decisions and economic benefits remain focused on Maryland’s taxpayers, businesses, workers, communities, and equine industry.
