Maryland Gov. Wes Moore’s administration matched Churchill Downs‘ $85M offer to buy the Preakness Stakes’ intellectual property, meaning the state “will own the rights,” according to Cohn, Chingarande & Carey of the BALTIMORE SUN. Moore’s decision “ends the shuffling of ownership among racing properties.” The Preakness has “moved between state entities and 1/ST Racing,” which operated this year’s race at Laurel Park because of renovations at Pimlico Race Course. Historically, Maryland has leased the intellectual property rights, including all branding and trademarks, though that arrangement has “left the state in a vulnerable position.” The acquisition will be “funded through a tax-exempt revenue bond issuance by the Maryland Economic Development Corporation (MEDCO), and no General Fund tax dollars will be used.” The debt service will be “backed by future revenues from the Preakness Stakes and the Black-Eyed Susan, including wagering, ticketing, and sponsorship streams.” Next year’s Preakness is expected to return to Pimlico (BALTIMORE SUN, 6/18). In Baltimore, Gardner & Sanderlin note between $6M and $7M a year in “revenue from the racing industry will pay off those bonds over 30 years,” totaling about $200M. State officials are “confident” that the Preakness will “generate enough money to annually pay that amount and break even.” If it is unable to, the Maryland Jockey Club is “backstopped with state money generated by slot machines that typically funds horse racing purses” (BALTIMORE BANNER, 6/18).
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