By Bill Finley
Maryland Governor Wes Moore has announced that the state of Maryland has matched the $85-million bid from Churchill Downs for the intellectual property and branding rights to the Preakness, which will now be held by the state.
The story was first reported by the Baltimore Banner.
Gov. Wes Moore said in a statement provided to the Banner that his administration has made “historic investments” to ensure the future of Maryland's racing industry, and that the $85-million decision will secure a “vital asset for our state.”
It will “preserve Maryland's position as a key power player in the Triple Crown for generations to come,” he said.
According to the Banner, Moore wrote in a letter to 1/ST and Churchill on Thursday that he hoped the state could collaborate with Churchill and others to “unlock growth and drive innovation to benefit the Preakness Stakes, Maryland's horseracing industry, and the entire Triple Crown.”
In April, it was reported that Churchill was set to pay $85 million for the intellectual property, including all trademarks and associated rights, of the Preakness Stakes and the Black-Eyed Susan Stakes from 1/ST Maryland LLC. While Churchill's role in the future of the Preakness was never clearly defined, having Churchill involved created a degree of uncertainty about the future direction of the race.
According to the Banner, funding for the $85-million payout to 1/ST will come from bonds issued by the Maryland Economic Development Corporation (MEDCO), a quasi-governmental agency.
Officials at Churchill Downs, Inc. confirmed Thursday afternoon the state of Maryland had notified Churchill of the offer match.
“We understand why the state of Maryland would decide to acquire the Preakness IP rights as a state-owned asset from 1/ST Maryland LLC,” said Bill Carstanjen, Chief Executive Officer of CDI. “We remain committed to working with the Governor and other elected leaders and horse racing constituents in Maryland to fully realize the potential of a redeveloped Pimlico and Preakness Stakes within the Triple Crown and the broader sports and entertainment landscape.”
The Maryland Jockey Club (TMJC) shared an enthusiastic statement Thursday evening applauding Gov. Moore's decision.
“Thank you to Governor Moore and First Lady Dawn Moore for their leadership in making one of the most significant industry decisions in Maryland's history,” said Jim Dresher, Chairman of the Board of TMJC. “Retaining the Preakness in Maryland safeguards the event's future, and TMJC and its Board of Directors are committed to advancing that vision.”
Bill Knauf, President and General Manager of TMJC, added: “In keeping with Governor Moore's vision, the Maryland Jockey Club is ready to further elevate the Preakness into a world-class, bucket-list event for Marylanders and racing fans worldwide. We are also excited to work with our strategic partners on new events and entertainment options leading up to Preakness weekend. We very much look forward to collaborating with our Triple Crown partners.”
Greater Baltimore Committee President and CEO Mark Anthony Thomas also issued a statement late Thursday afternoon. In full, it read:
“The Preakness is more than a horse race. It is one of Maryland's most iconic brands, one of its most important cultural assets, and one of the State's strongest opportunities for long-term economic growth.
“Ownership ensures that the decisions shaping the future of the Preakness are made in the interest of Maryland and that the value created through public investment benefits Maryland taxpayers, businesses, workers, communities, and the equine industry. The Greater Baltimore Committee applauds Governor Wes Moore for his thoughtful leadership, due diligence, and commitment to ensuring that this decision reflects the long-term interests of the State.
“Acquiring the Preakness intellectual property secures one of Maryland's signature assets and creates an opportunity to generate even greater economic value through tourism, business investment, sponsorship, job creation, and cultural activity. We look forward to working alongside the State, the Maryland Jockey Club, and partners across Maryland to help maximize this opportunity and ensure the Preakness continues to grow as a source of pride, prosperity, and economic opportunity for generations to come.”
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