Post #390 – The Churchill Downs Inc. move against the Preakness is not Governor Moore’s fault

About a month ago I wrote a piece about saving horse racing industry because it made financial sense at the time. (Post #351)

On Tuesday Churchill Downs Incorporated and the New York Racing Association (NYRA) announcing the creation of a Thoroughbred Championship Series. A new six race competition to start in 2027 that will establish an annual season long championship for America’s leading 3-year-olds. Churchill Downs and NYRA announcement that the new Thoroughbred Championship Series will not include Maryland’s Preakness was a gut punch.

In the middle of the 1950s horse racing was one of the top five favorites of sports fans. The peak of the era was in the 1970’s with horses like Secretariat and Seattle Slew.

As recently as ten years ago at Pimlico the highlight of going to the Preakness was the wild antics of the infield party which over the years has been tamed down dramatically to be more of a snooty little corporate affair.

For political purposes some people may want to blame Governor Moore. At this moment it appears it is not his fault that a private company, Churchill Downs Inc. has decided they don’t want to include the Preakness as a race for their Thoroughbred Championship Series. But maybe the Preakness needs to be rethought. On Wednesday Governor Moore announced that the Preakness would be moved back an extra day and would be done on Sunday May 23^rd. Valerie McDonough on social media criticize the idea of moving the Preakness to the Lord’s day. Clearly, she forgets that the Ravens and Orioles play regularly on Sunday. Also maybe there needs to be consideration of a larger purse, especially for the Kentucky Derby winner if they win the Preakness. Nothing says love like cold hard cash and more money always encourages people to make financial decisions they think will be better for them.

For years people have said that two weeks is not enough time for horses to recover from the Kentucky Derby. Also, as I’ve been told they are not allowed to use some of the drugs they use that could help them heal quicker. In response, will the Belmont Stakes now move a week back. One problem that Preakness has had over the years is some owners of horses skip the Preakness and set their sights on the Belmont Stakes because of the two-week time period between the Derby and the Preakness.

This feud with Churchill Downs started in June when the State of Maryland’s decided to match Churchill Downs Inc. $85 million offer for the intellectual property rights to the Preakness and Black-Eyed Susan Stakes.

In April, the owner of the Kentucky Derby, Churchill Downs announced an $85 million deal to acquire the rights of the Preakness, along with the Black-Eyed Susan Stakes, from 1/ST Racing under the Canadian Stronach Group, which formerly ran horse racing in Maryland. The state currently leases the Preakness brand from 1/ST. That is the key.

Under a state law, Maryland had a 60-day window to exercise its right of first refusal following the formal notification of the sale by 1/ST Racing. The intellectual property package includes the names, branding, and an annuity of guaranteed annual payments. The potential purchase faced some opposition from state lawmakers concerned with taxpayers acquiring ever-expanding financial obligations. It’s $85 million but the state would buy is using MEDCO bonds that would be paid off with Preakness revenues. No taxpayer money used. But if this goes south all hell will break loose in Annapolis.

There is a rumor that Churchill Downs felt Maryland, based on conversations with state officials would not buy the Preakness rights and felt blindsided when the state of Maryland bought it. So, the question is because of all this, is Churchill Downs trying to stick it to the people of Maryland?

I’m not a horse racing fan. I’ve been to Pimlico once, when Bill Clinton was president, so I’ve punched that ticket. MMA has replaced boxing and the world has survived. The problem is how do you get people interested in a sport that so few people care about? In New York and Kentucky horse racing matters, in the majority of other states it’s a shrug of the shoulders.