Maryland to acquire rights to Preakness Stakes, matching $85 million offer from Churchill Downs

Maryland is matching an $85 million offer to acquire the rights to the Preakness Stakes and Black-Eyed Susan Stakes, the governor's office said. 

Churchill Downs announced in April that it reached an agreement to buy the rights and trademarks to both brands. It would have left Churchill Downs to manage the rights for the first two legs of the Triple Crown, which include the Kentucky Derby. 

However, by exercising its right of first refusal, Maryland secures ownership of the brands, allowing the state to remain in control of the multi-billion-dollar horse racing industry. 

"The Preakness Stakes is more than just a race; it is a cornerstone of Maryland's history, culture, and economy," Gov. Wes Moore said. "...This decision secures a vital asset for our state, allows Maryland to shape its horseracing destiny, and by leveraging the Preakness's iconic status and partnering with industry experts to enhance the fan experience, preserve Maryland's position as a key power player in the Triple Crown for generations to come." 

Currently, Maryland owns Pimlico Race Course, which is undergoing a major renovation, and oversees management of the Preakness. The state also plans to buy Laurel Park Race Course. 

According to the governor's office, by owning the rights to the brands, the state will no longer have to follow the fee structure of the existing exclusive licensing agreement, which would have increased costs over time. 

"The State will operate under a model that prioritizes industry health and community benefit, consistent with the nonprofit model adopted by the Maryland Jockey Club," the governor's office said in a statement. 

"Acquiring the Preakness intellectual property secures one of Maryland's signature assets and creates an opportunity to generate even greater economic value through tourism, business investment, sponsorship, job creation, and cultural activity," said Mark Anthony Thomas, President and CEO of the Greater Baltimore Committee.

The acquisition will be funded with tax-exempt revenue bond issuance by the Maryland Economic Development Corporation, and no general fund tax dollars will be used to pay for it, according to the governor's office. 

"While the State will now own the IP, it remains open to identifying areas of mutual interest with Churchill Downs and other industry partners to benefit the broader Triple Crown and the sport of horseracing," the governor's office said.