Maryland Moves to Claim Preakness Stakes IP for $85 Million
Maryland is invoking a state law to seize control of the Preakness Stakes trademark, matching Churchill Downs' agreed purchase price of $85 million.
Maryland has signaled it will block Churchill Downs Incorporated from acquiring the intellectual property behind one of horse racing's most storied events. The state formally notified CDI of its intent to exercise a right-of-first-refusal provision under Maryland Code Ann. Bus. Reg. §11-520(d), a statute that empowers Maryland to match any agreed purchase price for the Preakness Stakes trademarks and associated rights — effectively stepping in front of the Louisville-based racing giant.
Churchill Downs, which operates the Kentucky Derby and is among the most powerful commercial forces in American horse racing, had previously reached an $85 million deal to acquire the Preakness IP Rights from 1/ST Maryland LLC, an affiliate of 1/ST Racing. That agreement would have given CDI ownership of both the Preakness Stakes and the Black-Eyed Susan Stakes brands. Maryland's decision to match that figure means the state, not CDI, would become the steward of those trademarks — a move with significant implications for how the second leg of the Triple Crown is governed and commercially developed going forward.
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The maneuver underscores a longstanding tension between private racing entities and state governments over who ultimately controls legacy sporting assets that carry deep cultural and economic weight. The Preakness Stakes, run annually at Pimlico Race Course in Baltimore, is more than a race — it is a civic identity for Maryland, and lawmakers have historically been reluctant to cede influence over its future to out-of-state operators. By invoking the statutory matching right, Maryland is asserting that public oversight of the Preakness brand is worth $85 million.
What happens next will depend on how Maryland structures its acquisition and whether ongoing redevelopment plans for Pimlico — which have been tied to broader negotiations involving the racing industry — proceed in parallel. CDI had not yet commented publicly on how the state's decision affects its broader Maryland strategy. The outcome could reshape the competitive landscape for Triple Crown sponsorships, broadcast rights negotiations, and the long-term viability of Pimlico as a racing venue.
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