Maryland finalizes $85 million deal to acquire rights to Preakness

Maryland has finalized its $85 million dollar deal to acquire the rights to the Preakness Stakes. 

The finalization, which also includes the Black-Eyed Susan Stakes, had been expected after Maryland announced in June that it had matched an $85 million offer for the two events sought by Churchill Downs. 

The $85 million offer secures ownership of the two brands, allowing the state to remain in control of the multi-billion-dollar horse racing industry. Maryland already owned Pimlico Race Course, home of the Preakness. The facility is currently undergoing a major renovation.

No taxpayer money used

The acquisition was funded with tax-exempt revenue bond issuance by the Maryland Economic Development Corporation, and no general fund tax dollars were used to pay for it, according to the office of Maryland Governor Wes Moore. 

By owning the rights to the brands, the state will no longer have to follow the fee structure of a former exclusive licensing agreement, which would have increased costs over time, state officials said.     

After the deal was finalized, Moore said in a statement the Preakness Stakes "is a cornerstone of Maryland's history, culture, and economy– so our administration is dedicated to preserving our state as a key power player in the Triple Crown for generations to come." 

Leveraging the Preakness's 'iconic status'    

"With this final acquisition we are not only leveraging the Preakness's iconic status and uplifting our horse racing industry, we are revitalizing the communities that directly benefit from the economic opportunities of the race." he added. 

"Through this acquisition, the State of Maryland secured ownership of the valuable IP rights, ensuring that the Preakness will call Baltimore and Maryland home well into the future," a statement from Moore's office said.