Triple-Crown Tectonic Shift: Churchill Downs Buys Preakness From 1/ST

Churchill Downs and 1/ST, the Belinda Stronach-run racing group that was the owner of Pimlico before its recent sale to the state of Maryland, have agreed on an $85-million deal for the “intellectual property rights” for the storied 151-year-old Preakness — which is to say, in effect, Churchill now has the rights to stage and to profit from the running of the second jewel in the Triple Crown as well as the first. The landmark deal, announced on April 21, will be finalized at some point after this year’s Preakness, which will be run by 1/ST at Laurel, with Pimlico now being rebuilt by the state of Maryland.

The principals were understandably effusive about the, for the sport, enormous implications of the change of hands. For her part, Belinda Stronach was at pains to point out that 1/ST was by no means exiting racing, although the retreat from Pimlico and the Preakness does now mean that 1/ST will officially no longer have a public footprint in Maryland. Two of the nation’s most popular and successful tracks, Santa Anita in California and Gulfstream in Florida, remain the major focus of the group, according to Stronach.

For Churchill Downs, it’s a really smart move at an opportune moment. The aging, tatty, late-modern Pimlico was demolished last year as 1/ST and the state of Maryland hammered out their $48-million deal for the state to take over the track. A fine new grandstand will be built. From Churchill’s point of view, then, now was the time to drive a deal with 1/ST, who had already sold the track. Why control just one jewel of the Triple Crown when you can control two? NBC’s contract to broadcast the Triple Crown is coming up for renewal after this year.