Two out of three ain't bad – Churchill Downs to purchase the IP rights to the Preakness Stakes

*The Preakness Stakes, the second leg of America’s famous Triple Crown, will be run under the banner of Churchill Downs Inc in a $US85 million deal. (Photo by Emilee Chinn/Getty Images)*

Churchill Downs Inc, the company that owns America’s most prominent race, the Kentucky Derby, has secured the intellectual property rights of the second leg of the US Triple Crown, the Preakness Stakes.

In an intriguing development ahead of the 2026 edition of the Derby, to be held on May 2, and the Preakness, to be conducted at Laurel Park on May 16, the two events will be effectively owned by the same company, with a deal expected to be finalised in the coming months.

Churchill Downs Inc purchased the rights from the Stronach Group, trading as 1/ST, for US$85 million. It does not involve any rights over Pimlico racecourse, traditionally the home of the Preakness and currently undergoing a massive renovation by the state of Maryland, who purchased it from 1/ST in a deal worth US$45 million in 2024.

Instead, the rights to conduct the Preakness as well as those of the Black-Eyed Susan Stakes will be leased back to Maryland by CDI 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 realise the potential of a redeveloped Pimlico and Preakness Stakes within the Triple Crown and the broader sports and entertainment landscape.”

The Preakness Stakes was first run in 1873, while the Black-Eyed Susan is a leading race for three-year-old fillies traditionally conducted at Pimlico Racecourse on the day before Preakness.

The move gives CDI much greater control of the broadcast of and wagering on the first two legs of the Triple Crown.

1/ST has said it will focus on its racetracks at Santa Anita and Gulfstream and remains committed to racing despite selling off several assets in the past few years.

“Bringing together two prestigious racing brands, the Kentucky Derby and the Preakness Stakes, is a significant step toward the successful longevity and growth of the American Triple Crown of Thoroughbred racing,” 1/ST Chairman and chief executive Belinda Stronach said.

“The agreement with Churchill Downs Inc. to acquire ownership of the intellectual property rights of the Preakness Stakes, immediately following Preakness 151, closes our company’s Thoroughbred racing chapter in Maryland.

“1/ST is proud to have served as a steward of the Preakness Stakes, and we are grateful to the fans, industry stakeholders, the State of Maryland, the City of Baltimore, and the community for their support. We remain focused on our core assets in California and Florida and supporting a strong and sustainable future for the sport.”

Laurel Park will host the 2026 edition of the Preakness before undergoing redevelopment after the Maryland government agreed to a US$48.5 million deal to secure the 229-acre property from 1/ST, signed only this week.

It is set to become a purpose-built training facility.

The third leg of the Triple Crown, the Belmont Stakes, is staged by the New York Racing Association (NYRA). It has been held at Saratoga the past two years and will again in 2026, while Belmont Park undergoes its own US$455 million rebuild.