Maryland Secures Future of Preakness Stakes with Historic Investment
The state of Maryland, under Gov. Wes Moore’s administration, has decided to match Churchill Downs’ $85 million offer to purchase the intellectual property rights of the Preakness Stakes from 1/ST Racing. This means that Maryland will now own the rights to use the Preakness name and branding, securing a vital asset for the state's racing industry. The $85 million payment will be funded through bonds issued by the Maryland Economic Development Corporation, with revenue from the racing industry paying off the bonds over 30 years.
This new arrangement replaces a previous deal that would have required a state-created nonprofit to pay annually for the rights to the Preakness. The decision to purchase the intellectual property is seen as a historic investment by Gov. Wes Moore’s administration to ensure the future of Maryland’s racing industry and maintain the state's position as a key player in the Triple Crown for generations to come. Without the rights to the Preakness Stakes, organizers would not be able to refer to the race by its iconic name.
The Maryland Jockey Club, a nonprofit created by the state in 2024 to operate racing, was initially set to pay an annual fee in perpetuity for the Preakness branding. However, the new agreement with Churchill Downs and 1/ST Racing involves a one-time $85 million payment that will be repaid over 30 years. State officials are confident that the revenue generated by the Preakness race will be sufficient to cover the annual payments and ensure the financial stability of the racing industry.
The Preakness Stakes, the second leg of the Triple Crown, has faced financial challenges in recent years despite its historical significance. The race used to attract over 100,000 fans annually but has struggled to break even in recent editions. With the redevelopment of Pimlico Race Course and plans to convert Laurel Park into a training facility, the state is investing over $500 million in racing infrastructure to revitalize the industry.
Churchill Downs Inc.’s unexpected agreement to purchase the Preakness intellectual property raised concerns about the future of the race and its traditions. However, Gov. Wes Moore expressed hope for collaboration between the state, Churchill Downs, and other stakeholders to drive innovation and growth for the Preakness Stakes, Maryland’s horseracing industry, and the Triple Crown as a whole.
In conclusion, the decision by Gov. Wes Moore’s administration to match Churchill Downs’ offer and purchase the intellectual property rights of the Preakness Stakes represents a significant investment in Maryland’s racing industry. By securing the rights to the Preakness name and branding, the state aims to ensure the long-term success and sustainability of one of the most iconic events in horseracing. The partnership between the state, Churchill Downs, and other stakeholders is expected to drive innovation and growth for the Preakness Stakes and the broader horseracing industry in Maryland.