Horse racing-Churchill Downs to buy Preakness intellectual property for $85 mln

April 21 (Reuters) – Churchill Downs Incorporated announced on Tuesday that it has reached a definitive agreement to purchase the intellectual property of the Preakness Stakes and Black-Eyed Susan Stakes from 1/ST Racing for $85 million in a deal combining the first two legs of the U.S. thoroughbred racing Triple Crown.

The parties expect the transaction, which is subject to customary conditions, to close following the conduct of the May 16 Preakness Stakes at Laurel Park in Laurel, Maryland.

Churchill Downs, home of the Kentucky Derby, said in a press release that it will license the intellectual property rights necessary to run the Preakness Stakes and Black-Eyed Susan Stakes to the State of Maryland for an annual fee.

“This acquisition adds one of the most iconic brands in American sports to our portfolio and is consistent with our strategy of investing in world-class Thoroughbred racing assets with long-term growth potential,” said CDI CEO Bill Carstanjen.

“CDI, which retains ownership of the Preakness intellectual property within the racing industry, will support efforts to realize the full potential of the Pimlico and Preakness Stakes as they are redeveloped within the Triple Crown and broader sports and entertainment landscape.”

First held in 1873, the Preakness Stakes is the second leg of the Triple Crown of U.S. thoroughbred racing. The Black-Eyed Susan is a premier race for three-year-old fillies that is traditionally held at Pimlico Race Course the day before the Preakness. (Reporting by Frank Pingue, Toronto Editing by Toby Davis) Churchill Downs Inc.