Recently, there has been significant public discussion about Maryland’s acquisition of the Preakness Stakes and Black-Eyed Susan Stakes intellectual property, the new NBC Sports media rights agreement, and the announcement of the new Thoroughbred Championship Series.

Much of that discussion has created understandable questions about what actually changed, how the acquisition is financed, whether taxpayer dollars are involved, what the new championship series means for the Triple Crown, and why Maryland chose to purchase the Preakness rather than continue licensing it.

This FAQ is intended to provide clear, factual answers to the most common questions. It explains what Maryland acquired, how the transaction is financed, why ownership is financially preferable to perpetual licensing, what the new NBC Sports agreement accomplishes, and why the Preakness remains firmly established as the second jewel of the Triple Crown.

Whether you are a racing fan, horseman, industry participant, or Maryland taxpayer, we hope these questions and answers provide the context needed to better understand these historic developments.

‍

The Preakness and Black-Eyed Susan Stakes Intellectual Property (IP)

1. What exactly did Maryland acquire?

The intellectual property (names, trademarks, and associated commercial rights) of the Preakness Stakes and Black-Eyed Susan Stakes.

In April, Churchill Downs, Inc. (CDI) announced that it had agreed to purchase the intellectual property (IP) of the Preakness Stakes and Black-Eyed Susan Stakes from 1/ST Racing for $85 million. The State of Maryland held a longstanding statutory right of first refusal, which allowed the State to acquire the IP by matching CDI’s independently negotiated offer to 1/ST Racing.

Maryland therefore faced a practical choice: (1) allow another company to own these historic brands, with the new nonprofit Maryland Jockey Club paying an annually escalating licensing fee in perpetuity to use them (discussed in detail below); or (2) match the third-party offer, secure permanent ownership, and eliminate those ongoing licensing costs.

On June 18th, Governor Moore notified 1/ST Racing that the State was exercising its statutory right to match CDI’s offer for the Preakness and Black-Eyed Susan IP. The State officially completed the IP purchase on July 30th.

The IP acquisition from 1/ST Racing complements Maryland’s ownership of Pimlico, Laurel Park, and the nonprofit Maryland Jockey Club’s track operational role. It brings the essential venue, event operations and brand rights under Maryland control – just like the New York State Franchise Oversight Board owns the intellectual property of the Belmont Stakes.

‍

2. Did the State spend General Fund taxpayer dollars to purchase the IP?

No.

The Maryland Economic Development Corporation (MEDCO) issued $85 million of bonds on behalf of the new nonprofit Maryland Jockey Club, Inc. (TMJC) to finance the acquisition of the Preakness and Black-Eyed Susan IP. Governor Moore’s office states expressly that no General Fund dollars will be used. TMJC’s future Preakness and Black-Eyed Susan revenues – including wagering, ticketing, and sponsorships – will be used to repay the annual principal and interest on the MEDCO bonds.

‍

3. How is buying the intellectual property cheaper than continuing to license it from either 1/ST Racing or Churchill Downs?

Because the previously negotiated annual Preakness IP license fee was perpetual, escalating every year, and never resulted in an opportunity to own.

Under the previous 2024 agreement negotiated by the Maryland Thoroughbred Racetrack Operating Authority (MTROA), the new nonprofit Maryland Jockey Club (TMJC) would have paid a perpetual, annually escalating license fee to the IP owner (either 1/ST RACING or CDI) for the right to use the Preakness and Black-Eyed Susan brands – while the private owner retained permanent ownership of the IP.

The MTROA negotiated license fee required TMJC to pay the IP owner a $3 million base fee with annual escalators along with a percentage share of the wagering handle of all races held on both Preakness and Black-Eyed Susan race days. Those annually increasing obligations would have continued indefinitely and totaled hundreds of millions of dollars in the long run.

By exercising the longstanding right of first refusal in State law, Maryland matched CDI’s $85 million offer to 1/ST RACING and substituted fixed financing for an escalating, perpetual obligation. At the end of the 30-year fixed financing term, the debt service payments stop and Maryland continues to own the IP.

‍

4. Are thoroughbred racing industry funds involved in the IP acquisition?

Yes. The financing is backed by horse-racing industry revenue, not the State's General Fund.

Both the previous licensing arrangement (with annual license payments owed to 1/ST RACING or CDI), and the IP ownership option rely indirectly on casino funds already allocated to Maryland's thoroughbred industry. Racing-generated revenues are the first guaranteed source for repayment of the debt. If those revenues are insufficient, the Maryland Jockey Club has an industry backstop from casino revenue that ordinarily supports Thoroughbred purses.

That distinction matters. The question is not whether industry funds are involved; they are under either approach. The real choice was whether those industry dollars would continue paying an escalating license fee indefinitely or instead finance ownership of a permanent asset. Under the acquisition, the financing ends after 30 years, while Maryland retains ownership of the Preakness and Black Eyed Susan IP.

‍

‍5. Does ownership shut Churchill Downs or other national partners out of the Preakness?

No.

Ownership means Maryland controls the asset; it does not prevent collaboration. Governor Moore’s press release expressly says Maryland remains open to working with Churchill Downs (CDI) and other partners to benefit both the Triple Crown and the broader industry. CDI likewise publicly said it understood Maryland’s decision to purchase the IP and remained committed to working with Maryland to realize the potential of the redeveloped Pimlico, the Preakness, and the Triple Crown.

‍

The New NBC Sports Agreement and the CDI/NYRA Thoroughbred Championship Series

1. What does the new NBC Sports agreement provide?

It secures and expands national coverage of Maryland racing through 2032.

NBC Sports and the new nonprofit Maryland Jockey Club extended a relationship that began in 2001. Beginning in 2027, the Preakness moves to Sunday and will be presented on NBC and Peacock; the Black-Eyed Susan will receive a Saturday showcase on NBC and Peacock. The agreement also adds Peacock coverage of Maryland Million Day and Preakness Preview Day, highlighted by the Federico Tesio and Weber City Miss stakes.

The NBC Sports agreement is an expansion of Maryland racing’s national platform, not evidence that the Preakness has been diminished. Jon Miller, the President of Acquisitions and Partnerships for NBC Sports noted that NBC is “excited to continue our relationship as the media home of the Preakness Stakes and look forward to an enhanced schedule, showcasing Maryland’s best races on both Saturday and Sunday. This extension is a testament to the strength of the relationship between the Maryland Jockey Club and NBC Sports and underscores our commitment to horse racing.”

‍

2. Is the NBC agreement connected to the State’s exercise of its right of first refusal?

They are separate agreements and actions that strengthen different parts of the same long-term strategy.

The right-of-first-refusal action concerns ownership of the Preakness and Black-Eyed Susan brands. The NBC agreement concerns media rights and distribution. One secures the asset; the other expands the audience and commercial platform.

‍

3. What is the CDI/NYRA Thoroughbred Championship Series?

A separate six-race, points-based competition for 3-year-olds beginning in 2027.

The announced series runs from the Kentucky Derby through a new September championship race and includes the Belmont Stakes, Matt Winn, Jim Dandy and Travers. It offers a $5 million bonus pool intended to encourage leading 3-year-olds to race through the season which is primarily in the summer and fall. The Preakness is not currently one of its points races.

That omission does not remove the Preakness from the Triple Crown. The Triple Crown remains the Kentucky Derby, Preakness Stakes and Belmont Stakes. A new points series can include two Triple Crown races without replacing the historic three-race achievement.

‍

4. Was the championship series designed to end the Triple Crown?

No credible evidence supports that claim, and NYRA’s president has repeatedly described the Triple Crown as sacred to the sport.

NYRA President and CEO David O’Rourke has called the Triple Crown “the holy grail” and “the one thing that works.” He warned that changing it too aggressively could “break it,” describing that as a nightmare scenario. In an earlier direct interview, he called the Triple Crown “sacrosanct to our industry” and emphasized that changes must be thoughtful, not knee-jerk.

After the announced championship series, the NYRA CEO noted the following to the Paulick Report:

“This is in no way at all … touching the Triple Crown,” O’Rourke said. “This builds on top of the Triple Crown, or alongside it. We don’t change anything with that. I still see the Triple Crown as one of the biggest, rarest things in sports.”

Those comments are inconsistent with claims that the Championship Series is intended to abolish the Triple Crown. The more supportable reading is that the championship series is designed to add a season-long storyline and incentive structure alongside - not in place of - the Triple Crown.

‍

5. Does moving the Preakness to the fourth Sunday in May weaken it?

The stated purpose is the opposite: to improve participation and strengthen Preakness weekend.

Beginning in 2027, the Preakness will be run three weeks after the Kentucky Derby, providing more recovery time under modern training practices. The Sunday move also gives the Black-Eyed Susan a larger Saturday television window. Governor Moore said the goal is to improve the likelihood that the Derby winner continues to Baltimore for the second leg of the Triple Crown.

‍

6. How will the new Preakness schedule encourage more horses to enter races at Pimlico on Preakness weekend?

The additional week will give horses competing on Kentucky Derby weekend more time to recover and prepare, making the Preakness and other stakes on Preakness weekend more practical options.

Historically, Preakness weekend has been held just two weeks after the Kentucky Derby. Under modern training practices, many trainers have been reluctant to run a horse in another major race only 14 days after Derby weekend – particularly when the horse was not pursuing the Triple Crown.

Beginning in 2027, Preakness weekend will be held three weeks after the Derby. The additional time will provide horses with more time for recovery, evaluation and preparation. Although the revised schedule cannot guarantee that every leading Derby horse will participate, it removes one of the most frequently cited obstacles and should make the Preakness, as well as the other stakes on the weekend program, more attractive to a broader group of horses that competed at Churchill Downs.

Larger, more competitive fields also create additional betting interests, which can stimulate wagering and produce a higher handle. Increased participation would benefit horsemen, racing fans and the broader Maryland racing industry.

‍

7. Will the Preakness conflict with the Indianapolis 500 when both are held on the same Sunday?

Under usual schedules, the two marquee events are separated by several hours and air on different networks.

The Indy 500 is televised by FOX, not NBC. Its green flag is traditionally scheduled for approximately 12:45 p.m. ET, and the race generally takes about three to three-and-a-half hours to complete. That normally places the race finish in the mid-to-late afternoon.

NBC has announced that the Sunday Preakness will be showcased in the late-afternoon/early-evening window. The Preakness traditionally has a post time around 6:50 to 7:01 p.m. ET.

Accordingly, when the events fall on the same Sunday, viewers should ordinarily be able to watch the Indianapolis 500 finish well before the Preakness Stakes. There is no broadcast-network conflict, and the normal race times provide substantial separation. As with every outdoor sporting event, an unusual weather delay could affect a particular year’s schedule; official coverage and post times will be confirmed annually.

‍

Short Summary:

Maryland (1) replaced an escalating perpetual, IP licensing payment with fixed, industry-backed financing that culminates in Maryland Preakness IP ownership; (2) secured expanded NBC/Peacock coverage for the Preakness and Black-Eyed Susan through 2032; and (3) preserved the Preakness as the second jewel of the Triple Crown.

The IP acquisition is fiscally responsible: it avoids General Fund spending, saves hundreds of millions of dollars against the previous licensing alternative, ends the payment obligation after the fixed financing term and keeps the long-term value of the Preakness right here in Maryland.

‍