As the new Maryland Jockey Club moves forward, it will have complete control, rights, and benefits of the Preakness Stakes (G1), which industry and political leaders in the state believe will be crucial for success.
The previous owner of the Maryland Jockey Club, 1/ST Racing (The Stronach Group), had maintained an intellectual property ownership of the Preakness as part of a sweeping plan that has seen a not-for-profit entity take over the Maryland Jockey Club. In April, Churchill Downs Inc. and 1/ST Racing announced a deal to transfer those intellectual property rights from 1/ST Racing to CDI for a purchase price of $85 million.
While the rights deal was announced April 21, the state had retained the right of first refusal on that former 1/ST Racing interest in the Preakness through a matching offer. On June 18, Maryland Gov. Wes Moore announced the state's intention to match the offer
"The Preakness Stakes is more than just a race; it is a cornerstone of Maryland's history, culture, and economy," Moore said in a statement. "Our administration has made historic investments to revitalize Pimlico Race Course and secure the long-term sustainability of the Maryland horse racing industry.
"This decision secures a vital asset for our state, allows Maryland to shape its horse racing 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 racing is banking on a plan to build a new Pimlico Race Course to become its racing home, while Laurel Park becomes a training facility. The Preakness was conducted at Laurel Park this year, but is scheduled to return to Pimlico in 2027 although the facility will not be fully ready at that point. The plan is to use temporary facilities while construction continues.
If 1/ST Racing or CDI had retained the intellectual property ownership, the new MJC would have paid a $3 million base fee for the Preakness, as well as an amount equal to 2% of the handle on Preakness weekend (Friday and Saturday) annually for at least 10 years. Now the new MJC will retain all profits from the Preakness weekend.
Mark Anthony Thomas, president and CEO of the Greater Baltimore Committee, praised the state's decision to buy out CDI.
"The Preakness is more than a horse race. It is one of Maryland's most iconic brands, one of its most important cultural assets, and one of the State's strongest opportunities for long-term economic growth.
"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. The Greater Baltimore Committee applauds Governor Wes Moore for his thoughtful leadership, due diligence, and commitment to ensuring that this decision reflects the long-term interests of the state.
"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. 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."
