Churchill Downs announced last month its intent to buy the Preakness Stakes’ intellectual property for $85 million, creating more intrigue about the race’s future as the state is set to take control in 2027.

But left unsaid is that Maryland has an opportunity to match the offer. The government is on the clock to consider whether to reclaim ownership of the branding and trademarks associated with the famed race and the Black-Eyed Susan, a stakes race for fillies held the Friday before Preakness.

The state agreed in 2024 to take over ownership of Pimlico Race Course and to set up a nonprofit entity to operate thoroughbred racing in Maryland. That deal left Preakness branding in the possession of the racetrack’s former owner, 1/ST Racing, a Canadian company also known as The Stronach Group.

Under that arrangement, the nonprofit, dubbed the Maryland Jockey Club, would indefinitely pay about $5 million to 1/ST each year for the right to use the Preakness name.

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1/ST selling the intellectual property, however, would mean the Maryland Jockey Club would instead pay Churchill Downs, the massive casino and racing company famous for hosting the Kentucky Derby.

But there is a catch. A provision in state law gives Maryland a “first right of refusal,” meaning it has up to 60 days to make its own offer for the intellectual property.

It’s not clear if the state will seek such a deal, which would require it to identify a funding source. A statement from a spokesperson for Gov. Wes Moore was noncommittal.

“The State is aware of its options ... and is engaging with key partners and stakeholders to ensure the future success of the Preakness Stakes and Maryland’s horseracing industry,” spokesperson Rhyan Lake said.

The Maryland Stadium Authority, which owns Pimlico, issued a similarly noncommittal statement: “Since Churchill Downs announced its intent to acquire the Preakness and Black-Eyed Susan IP, the State has engaged with stakeholders to ensure a strong future for Maryland horseracing.”

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Churchill Downs reported $2.9 billion in revenue last year and is a giant in the casino and racing business. Among its portfolio is the casino and harness racing track Ocean Downs in Berlin on the Eastern Shore.

Amid consternation that the company would meddle with Preakness, Churchill Downs CEO Bill Carstanjen said during an earnings call last week, “Maryland is in control of the destiny of the Preakness.”

“We certainly, upon closure, will be the owners of the intellectual property and have started, already, a very strong dialogue with the state about how we may be able to help them achieve those goals,” Carstanjen said.

The Kentucky Derby is Saturday, and the 151st running of the Preakness Stakes will take place May 16 at Laurel Park — while the state razes and rebuilds Pimlico.

Preakness is annually run two weeks after the Derby, although there is renewed chatter about shifting the date in the coming years.

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Next year will be the first that the Maryland Jockey Club is in charge of running Preakness, expected to be held at a partially rebuilt Pimlico. The venue is scheduled to host the 2027 event — using temporary structures — before being fully ready for the 2028 edition.

Unless the state buys the intellectual property for $85 million, the Maryland Jockey Club will be on the hook to pay $3 million to Churchill Downs, plus 2% of the weekend betting handle, a percentage that will likely translate to over $2 million.

It’s not clear how long the state has to counter the offer from Churchill Downs.

Under state law, once Maryland is notified of a pending sale of Preakness, a 60-day window opens for the state to make its offer. The deal was made public April 21, but it’s unclear when the state was notified.

As part of a plan to use more than $500 million in public funds to revitalize racing in Maryland, state government is also purchasing Laurel Park for $48.5 million.

The state had first pegged a Carroll County farm for a training center but recently switched gears. It will turn Laurel Park in Anne Arundel County into the training track, which will complement everyday racing activities at Pimlico.