LEXINGTON, Ky. — Churchill Downs Inc. announced Tuesday that it has purchased the intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes from 1/ST Maryland LLC for $85 million, consolidating ownership of the first two legs of American horse racing's Triple Crown under the Louisville-based company.

The deal, expected to close after the 151st Preakness on May 16, marks a significant consolidation in the sport. Churchill Downs will now control two legs of horse racing's Triple Crown, with only the Belmont Stakes in New York remaining outside its ownership.

"This acquisition adds one of the most iconic brands in American sports to our portfolio and is consistent with our strategy of investing in premier Thoroughbred racing assets with long-term growth potential," Bill Carstanjen, Churchill Downs CEO, said in a statement.

The intellectual property rights purchased remain subject to a licensing agreement from 2024, when 1/ST Racing entered a master agreement with Maryland as part of a redevelopment plan that includes improvements at Pimlico Race Course. Under the new arrangement, Maryland will pay a license fee to Churchill Downs to conduct the Preakness.

The deal comes a day after Governor Wes Moore announced a $48.5 million agreement with 1/ST Holdings to purchase Laurel Park, the last facility in Maryland owned by the Stronach family. This year's Preakness will be held at Laurel Park while Pimlico undergoes construction; the race is scheduled to return to its Baltimore home in 2027.

The acquisition bolsters Churchill Downs' portfolio as the horse racing industry seeks to strengthen its competitive position. Churchill Downs, as the bellwether of the industry, has the greatest opportunity to turn around operations and infrastructure by leveraging its broader ecosystem, according to industry analysts.

Churchill Downs' investment in Kentucky racing extends beyond the Derby, with the company making significant commitments to strengthen the state's horse racing industry. The company operates racing and gaming facilities across multiple Kentucky locations and has invested heavily in historical racing machine facilities that support purses at tracks statewide.

The acquisition also positions Churchill Downs to influence scheduling and broadcast negotiations for the Triple Crown. The Preakness' broadcast deal with NBC expires after this year, with the race's potential move to a different calendar slot generating increasing interest in its television rights.