Churchill Downs Incorporated announced on Tuesday that it had entered into a definitive agreement to acquire the intellectual property of the Preakness Stakes and Black-Eyed Susan Stakes from 1/ST Racing for $85 million in a deal that unites the first two legs of U.S. thoroughbred racing’s Triple Crown.
The parties expect the transaction, which is subject to customary conditions, to close after the running of the May 16 Preakness Stakes at Laurel Park in Laurel, Maryland.
Churchill Downs, home of the Kentucky Derby, said in a press release it would license to the State of Maryland the intellectual property rights necessary to conduct the running of the Preakness Stakes and Black-Eyed Susan Stakes in exchange for an annual fee.
“This acquisition adds one of the most iconic brands in American sports to our portfolio and is consistent with our strategy of investing in premier Thoroughbred racing assets with long-term growth potential,” said Bill Carstanjen, chief executive officer of CDI.
“In keeping ownership of the Preakness intellectual property in the racing industry, CDI will support efforts to fully realize the potential of a redeveloped Pimlico and Preakness Stakes within the Triple Crown and the broader sports and entertainment landscape.”
The Preakness Stakes, first run in 1873, is the second leg of U.S. thoroughbred racing’s Triple Crown. The Black-Eyed Susan is a leading race for three-year-old fillies traditionally conducted at Pimlico Race Course on the day before Preakness.
Source: Reuters.com