Churchill Downs (CHDN) to Acquire Preakness Stakes Intellectual Property for $85M

Churchill Downs Incorporated (NASDAQ:CHDN) is one of the 9 Best Upside Stocks to Buy According to Analysts.

Churchill Downs Incorporated (NASDAQ:CHDN) is one of the best upside stocks to buy according to analysts. On April 21, Churchill Downs, or simply CDI, entered into a definitive agreement to acquire the intellectual property rights for the Preakness Stakes and the Black-Eyed Susan Stakes from 1/ST Maryland LLC. The purchase price is set at $85 million and includes all trademarks and associated rights. This transaction is expected to close following the running of the 2026 Preakness Stakes, with funding provided by CDI’s cash on hand and existing credit facilities.

Following the acquisition, Churchill Downs Incorporated (NASDAQ:CHDN) will enter into an exclusive license agreement with the State of Maryland. This arrangement allows the state to continue conducting these historic races in exchange for an annual fee paid to CDI. The Preakness Stakes, established in 1873, serves as the second leg of the Triple Crown, while the Black-Eyed Susan remains a premier event for three-year-old fillies held annually at Pimlico Race Course.

The move aligns with CDI’s broader strategy to invest in elite Thoroughbred racing assets with high growth potential. CEO Bill Carstanjen emphasized that keeping the brand ownership within the racing industry supports the ongoing redevelopment of Pimlico. The company aims to maximize the commercial and entertainment value of these iconic sports brands within the Triple Crown framework and the wider sports landscape.

Churchill Downs (CHDN) to Acquire Preakness Stakes Intellectual Property for $85M

Churchill Downs Incorporated (NASDAQ:CHDN) is a racing, online wagering, and gaming entertainment company. It is anchored by its flagship event, the Kentucky Derby. The company operates through three segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming.

While we acknowledge the risk and potential of CHDN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CHDN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.