What's Happening?
The state of Maryland has finalized a deal to purchase the intellectual property rights of the Preakness Stakes from 1/ST Racing for $85 million. This acquisition follows the state's previous purchase of two racetracks from the Canadian company, marking
a significant transition of local thoroughbred racing assets to state control. Governor Wes Moore emphasized the importance of the Preakness Stakes to Maryland's history and economy, committing to maintaining the state's role in the Triple Crown. The Maryland Jockey Club, a state-created nonprofit, will manage the race branding. The state plans to use bonds issued by the Maryland Economic Development Corp. to fund the purchase, with the Maryland Jockey Club paying off these bonds over 30 years.
Why It's Important?
This acquisition is crucial for Maryland as it secures the state's control over a key cultural and economic event, the Preakness Stakes, which is part of the prestigious Triple Crown series. By owning the intellectual property, Maryland ensures that the race remains a significant local event, potentially boosting tourism and local business. The deal also prevents other racing industry giants, like Churchill Downs Inc., from acquiring the rights, which could have led to the race being moved or rebranded. The state's investment in the racing infrastructure, including the redevelopment of Pimlico Race Course, underscores its commitment to preserving and enhancing its racing heritage.
What's Next?
The state will continue its efforts to develop the racing infrastructure, with plans to transform Laurel Park into a training center and complete the rebuild of Pimlico Race Course. The next Preakness Stakes is expected to be held at a partially completed Pimlico, with temporary facilities in place. By 2028, the venue is projected to be fully operational. The Maryland Jockey Club will collaborate with local business communities to promote the Preakness on a national level, aiming to attract more spectators and enhance the event's profile.
