Maryland exercises its right to match an $85 million offer to keep Preakness branding rights

Maryland Gov. Wes Moore said Thursday the state will exercise its right of first refusal to match Churchill Downs Incorporated’s $85 million offer for the intellectual property of the Preakness Stakes and the Black-Eyed Susan Stakes.Churchill Downs Inc.

, which runs the Kentucky Derby to open the Triple Crown, announced in April it was buying the branding rights to the second leg, as well as the race for fillies the precedes it by a day, from 1/ST Racing with the intent of licensing it back to Maryland annually to stage the races.“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. “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.”

Moore said no general fund tax dollars would be used, with the $85 million cost instead being funded by a tax-exempt revenue bond issuance, which would be paid back by money generated by the race through ticketing, wagering and sponsorships. The state expected the fee paid to Churchill Downs Inc. would escalate over time.

Maryland Thoroughbred Horsemen’s Association President Katharine M. Voss called the decision a defining moment for Maryland racing.“Ownership ensures that the decisions shaping the future of the Preakness are made in the interest of Maryland,” Greater Baltimore Committee President and CEO Mark Anthony Thomas said.

It is Maryland’s latest investment in the industry, in the middle of a massive reconstruction project at Pimlico Race Course, the traditional home of the Preakness and the Black-Eyed Susan in Baltimore. The races moved down the road to Laurel Park this year on a one-time-only basis while Pimlico work is being done.“We plan to be back there next year,” Maryland Jockey C