Governor Moore Announces Maryland Fully Owns Preakness Intellectual Property Rights After Final Acquisition
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ANNAPOLIS, MD – Governor Wes Moore today announced that the State of Maryland has completed its acquisition of the Intellectual Property (IP) Rights to the Preakness Stakes and Black Eyed Susan from 1/ST Racing. On June 18, Gov. Moore notified 1/ST Racing that the State of Maryland was exercising its right of first refusal to match the $85 million offer made by Churchill Downs, Inc. to acquire the IP rights.
“The Preakness Stakes is a cornerstone of Maryland's history, culture, and economy– so our administration is dedicated to preserving our state as a key power player in the Triple Crown for generations to come,” said Gov. Moore. “With this final acquisition we are not only leveraging the Preakness’s iconic status and uplifting our horse racing industry, we are revitalizing the communities that directly benefit from the economic opportunities of the race.”
The Maryland Economic Development Corporation (MEDCO) issued notes to finance the acquisition. No General Fund tax dollars are being expended to acquire the IP rights.
“MEDCO is proud to have had the opportunity to conceive and execute a financial transaction that secures ownership of the Preakness and Black-eyed Susan IP and cements the success of horse racing in Maryland for generations to come,” said Maryland Economic Development Corporation (MEDCO) Chief Executive Officer Tom Sadowski.
Through this acquisition, the State of Maryland secured ownership of the valuable IP rights, ensuring that the Preakness will call Baltimore and Maryland home well into the future and the State will remain in firm control of Maryland’s multi-billion dollar equine industry. With the acquisition of the IP rights, the State of Maryland now possesses sole ownership of the vital assets that drive its horseracing sector– with Pimlico Race Course and Laurel Park under control of the Maryland Stadium Authority and day-to-day horseracing being overseen by The Maryland Jockey Club, a not-for-profit organization established by state law.
"We thank Governor Moore for his leadership on this acquisition and look forward to executing the State’s vision for a world-class Preakness and Black-Eyed Susan event next year at the new Pimlico,” said Bill Knauf, President and General Manager of The Maryland Jockey Club. “With all assets now residing with the State, we will work closely with the Maryland, Baltimore and Park Heights business communities to showcase the Preakness on the national stage."
This acquisition is a strategic move to ensure the Preakness Stakes remains a world-class event, managed in the best interest of Maryland’s racing community and taxpayers. By owning the IP, the State will no longer be subject to the disadvantageous fee structure of the existing exclusive licensing agreement, which would have escalated costs for the State over time. Instead, the State will operate under a model that prioritizes industry health and community benefit, consistent with the nonprofit model adopted by the Maryland Jockey Club.
The State remains committed to growing the Preakness and enhancing its status as a premier event in the Triple Crown. The Maryland Jockey Club has already secured partnerships with best-in-class industry leaders, including Oak View Group for sponsorship growth and KO Productions for world-class event production. While the State will now own the IP, it remains open to identifying areas of mutual interest with Churchill Downs and other industry partners to benefit the broader Triple Crown and the sport of horseracing.
In 2024, the Maryland General Assembly authorized the Maryland Stadium Authority to issue $400 million in bonds to redevelop the Pimlico Race Course in Baltimore. The new facility will support over 500 jobs, and go from hosting approximately 15 racing days per year to becoming the permanent home of Maryland Thoroughbred racing with more than 100 racing days annually. As the centerpiece of Maryland’s Thoroughbred racing industry—which sustains more than 28,000 jobs and has generated approximately $3 billion in economic impact—the new Pimlico Race Course will be a year-round hub of economic activity for Park Heights, surrounding communities, and Baltimore City.
The State of Maryland has also prioritized investments in Park Heights through the ENOUGH Initiative, which has provided nearly $3 million to revitalization efforts led by Park Heights Renaissance. One of 27 ENOUGH communities, Park Heights is implementing evidence-backed initiatives to improve the wellbeing of young people, including revitalizing vacant homes, addressing food insecurity for residents, and strengthening educational resources for parents.
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