MARYLAND — Churchill Downs Inc. agreed to pay $85 million to acquire the trademarks and associated intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes from 1/ST Maryland LLC, an affiliate of 1/ST Racing. The agreement covers the intellectual property tied to the races, not the events themselves.

Under a separate licensing arrangement, Churchill Downs will grant the state of Maryland the rights needed to continue staging the races in exchange for an annual fee. The company said the transaction is expected to close after the 2026 running of the Preakness Stakes, pending customary conditions, and it plans to fund the purchase with cash on hand and its existing credit facility.

"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," Churchill Downs chief executive Bill Carstanjen said. He added that keeping ownership of the Preakness intellectual property within the racing industry would support efforts to maximize the event's potential, particularly as plans move forward to redevelop Pimlico Race Course.

In 2024, Maryland bought Pimlico Race Course from 1/ST Racing but allowed 1/ST Racing to retain the intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes. Under that arrangement, 1/ST Racing received annual payments and a share of wagering revenue tied to the races.

The Preakness Stakes was first run in 1873 and is the second leg of U.S. horse racing's Triple Crown, held two weeks after the Kentucky Derby and followed by the Belmont Stakes. The Black-Eyed Susan Stakes is a major race for three-year-old fillies traditionally run the day before the Preakness at Pimlico Race Course in northwest Baltimore.

With Pimlico undergoing redevelopment, the 2026 Preakness Stakes will not be run there. The race is scheduled for Laurel Park in the Maryland suburbs between Baltimore and Washington under limited-capacity conditions, with attendance capped at fewer than 5,000 spectators.

The Preakness has been run two weeks after the Kentucky Derby since 1950. Derby winners have skipped the Preakness in recent years due to the short turnaround time, including Rich Strike in 2022 and Sovereignty in 2025. Industry discussions have included the possibility of moving the race to three weeks after the Kentucky Derby beginning in 2027 to encourage greater participation from top horses.

NBC's contract to broadcast the Preakness expires after this year's running, and future media rights negotiations are expected to be tied to potential changes in the schedule. Multiple bidders including NBC, Fox, Amazon and Netflix have expressed interest in the next media rights deal.