MD intends to pay at least $85M for Preakness intellectual property

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Gov. Wes Moore announced Thursday that Maryland intends to secure ownership over the intellectual property rights of the Preakness Stakes and the Black-Eyed Susan by exercising its right of first refusal to match the $85 million offer made by Churchill Downs Inc.

“The Preakness Stakes is more than just a race; it is a cornerstone of Maryland’s history, culture, and economy,” Moore, a Democrat, said in a statement. “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.” 

Maryland already maintains ownership over Pimlico Race Course, oversees the management of the Preakness and has a pending purchase of the Laurel Park Race Course. According to a Thursday news release, the state’s decision to invoke its right of first refusal regarding the offer made by Churchill Downs was made as a result of a strategic evaluation to control the “essential assets” of the race.

The purchase will be funded via a tax-exempt revenue bond issuance by the Maryland Economic Development Corporation. No General Fund tax dollars are to be used for this acquisition.

The debt service will be supported by revenue — including wagering, ticketing and sponsorship streams — generated by the Preakness Stakes and Black-Eyed Susan.

Because the state will own the intellectual property, it will not be subject to the current licensing agreement and instead will use a model advantageous to the surrounding community and racing industry as a whole.

In 2024, the Maryland General Assembly approved $400 million in bonds to redevelop the Pimlico Race Course in Baltimore‘s Park Heights neighborhood. With that investment, racing at the course is set to increase from 15 days a year to more than 100.

The state has also infused funding for investments in Park Heights through Moore’s ENOUGH Initiative, which has put $3 million toward neighborhood revitalization efforts led by Park Heights Renaissance.

“Ownership ensures that the decisions shaping the future of the Preakness are made in the interest of Maryland and that the value created through public investment benefits Maryland taxpayers, businesses, workers, communities, and the equine industry,” Mark Anthony Thomas, the president and CEO of the Greater Baltimore Committee, said in a statement Thursday. “We look forward to working alongside the State, the Maryland Jockey Club, and partners across Maryland to help maximize this opportunity and ensure the Preakness continues to grow as a source of pride, prosperity, and economic opportunity for generations to come.”