The state of Maryland is set to take ownership of the intellectual property rights to the esteemed Preakness Stakes and Black-Eyed Susan horse racing events.
On Thursday, Governor Wes Moore made the announcement, stating that Maryland will exercise its right of first refusal to match Churchill Downs’ offer of $85 million for these rights.
“The Preakness Stakes represents more than just a single event; it is a fundamental aspect of Maryland’s heritage, culture, and economy,” said Moore in his statement. “Our administration has committed significant resources to rejuvenate Pimlico Race Course and secure the future of the horseracing industry in Maryland. This decision not only secures a critical asset for our state but also empowers Maryland to steer its horseracing future. By capitalizing on the Preakness’s legendary status and partnering with industry leaders to enhance the fan experience, we will ensure Maryland’s prominent role in the Triple Crown for years to come.”
State officials clarified that by acquiring the IP rights, Maryland will no longer be bound by the current unfavorable fee arrangements of the exclusive licensing deal, which would have led to increased expenses for the State over the years. Instead, Maryland will adopt a model focused on the health of the industry and the benefits to the community, aligning with the nonprofit framework established by the Maryland Jockey Club.
“Ownership of these rights guarantees that future decisions regarding the Preakness will reflect the interests of Maryland residents and that the value from public investment will benefit taxpayers, local businesses, employees, communities, and the equine sector,” remarked Mark Anthony Thomas, President and CEO of the Greater Baltimore Committee. He expressed appreciation for Governor Wes Moore’s diligent leadership and commitment to ensuring this decision aligns with the state’s long-term interests.
To match Churchill Downs’ $85 million proposal, Maryland will utilize funding sourced from a tax-exempt revenue bond issued by the Maryland Economic Development Corporation (MEDCO). Importantly, state officials have confirmed that no General Fund tax dollars will be allocated for this acquisition.
Revenue generated from wagering, ticket sales, sponsorships, and other future income associated with the Preakness Stakes and Black-Eyed Susan events will be utilized to service this debt.
H. Graham Motion, a Kentucky Derby-winning trainer and member of the Maryland Thoroughbred Horsemen’s Association, commended the state’s initiative to secure the intellectual property rights. “Having dedicated my career to Maryland racing and experiencing the honor of winning a Triple Crown race and competing in the Preakness, I truly understand the significance of this event for our sport and our community,” Motion stated. “Governor Moore’s leadership will ensure that future generations of horsemen, fans, and Maryland families will continue to honor the Preakness where it rightfully belongs—here in Maryland.”
Pimlico Race Course, the traditional home of the Preakness Stakes and the Black-Eyed Susan races, is currently undergoing a $400 million redevelopment aimed at restoring and modernizing the historic facility located in northwest Baltimore.
Due to ongoing construction, this year’s Preakness Stakes and Black-Eyed Susan races were held at Laurel Park Race Course.
In 2024, Maryland acquired ownership of Pimlico Race Course from the Stronach Group for just $1.
Additionally, the state is in the process of purchasing Laurel Park Race Course from 1/ST Holdings, a division of the Stronach Group.
State officials emphasized that Maryland’s acquisition of the IP rights finalizes its control over critical assets associated with the races.
“This is a pivotal moment for Maryland racing,” commented Katharine M. Voss, President of the Maryland Thoroughbred Horsemen’s Association and board member of The Maryland Jockey Club. “We eagerly anticipate collaborating with Governor Moore and the State of Maryland to forge a stronger future for our industry, ensuring the Preakness remains in Baltimore permanently and utilizing this historic event as a catalyst for ongoing investment and revitalization of this beloved city.”
