Churchill Sets Opening Day, Aims to Host Fans at Derby

On a day when the opening date for a spectatorless spring meet was announced as May 16, while conceding protocols will almost certainly need to be in place because of ongoing policies during the COVID-19 outbreak, Churchill Downs Inc. CEO Bill Carstanjen expressed a strong commitment to having fans attend this year's Kentucky Derby Presented by Woodford Reserve (G1) Sept. 5 at Churchill Downs.

While some tracks have conducted racing without fans—an approach Churchill Downs plans to take in order to get the delayed spring meet underway—Carstanjen affirmed his company's dedication to on-site attendance for the American classic. The Derby was moved from its original May 2 date because of the global coronavirus pandemic, while the spring meet was originally slated to begin April 25.

"We will adjust and respond to whatever the circumstances and will work tirelessly with state and local officials to develop any and all protocols and procedures to make our event a safe and respectable spectator event," Carstanjen said during a teleconference with investors and analysts Thursday morning. "The Derby has been held every year since 1875. Most years, it's easy. This year we have to work hard with our state and local leaders to make it everything it can be, and we will do that."

After the spring meet's opening weekend May 16-17, racing will be staged Thursdays through Sundays with a special holiday card on Memorial Day, May 25. Ben Huffman, Churchill Downs' vice president of racing, is crafting a condition book for the schedule of races, including a revised stakes schedule, which is expected to be released online this weekend so horsemen can begin preparing their horses for those engagements. 

On April 29 Churchill Downs received approval from state officials to reopen its stable areas at both Churchill Downs racetrack and the auxiliary Trackside training center May 11 under strict guidelines to effectively mitigate the impact of COVID-19.

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The stable areas will reopen under a phased, systematic approach, with incoming horses by their current stabling area.

Racing at Churchill Downs during the spring meet will be conducted spectator-free until government officials approve fans returning to the historic track. Only authorized racetrack employees and Kentucky Horse Racing Commission license holders who are providing support for a horse stabled at the facility will be permitted on the property. This specifically includes only trainers with horses stabled or racing on the facility grounds and those who are responsible for the care of the horses (veterinarians, grooms, exercise riders, and farriers).

Kentucky Derby Impact Remains Key

Revenue from Kentucky Derby attendance—including luxury seating options—is important for Churchill Downs, and the track is counting on a team approach to make the Derby an event that includes fans. Track officials are in close contact with government officials and regulators while also monitoring the latest information on COVID-19 in the region and beyond.

"We are working extremely closely with federal, state, and local authorities, as well as leading experts, to take all necessary steps to protect the health and safety of all who attend and participate in the Derby," Carstanjen said. "Recently, the data in this area has looked promising. Of course, the Derby is a national and international event, so there's a lot of data to track. 

"But, generally, what the future looks like the next four months is going to be a reflection of the policies and procedures and protocols that have been put in place by the various states and localities, and the effectiveness of those policies. So far, we see a lot to be happy about. There have been a lot of good decisions that have been made by leaders, including those in this state."

The track expects to incorporate a number of protocols based on the various seating options at Churchill Downs.

"We're not like a football stadium in the sense that not everyone is sitting shoulder to shoulder in a bowl, or one after another in lines of people," Carstanjen said. "Our facility is well more than a million square feet and features a variety of different environments. We have environments similar to high-end restaurants, a festival-type atmosphere in the infield, and we also have some stadium seats. But, generally, you see a variety of different environments, and so the protocols for each of those will be different."

Though he did not provide specifics, the track owner reported strong interest from customers and sponsors. 

"With our customers, I've been particularly humbled by the level of commitment to our event. Our customers remain excited. We offered refunds, and the percentage of folks pursuing refunds certainly was less than I expected," Carstanjen said. "There's still a great deal of excitement in our community and among our customers—wherever they come from—in our event. I think there's an expectation on their part that we'll work through whatever challenges in order to offer them an experience as close as possible to what they normally expect."

In working to allow fans at this year's Derby, Carstanjen noted the importance of the event to the city, state, and region. As originally scheduled, the event was expected to have an economic impact on Louisville of more than $400 million.

"The impact of the Kentucky Derby spreads well beyond the Twin Spires of Churchill Downs. It is an incredibly important time for the city of Louisville and the commonwealth of Kentucky—culturally, economically, and with respect to our time-honored traditions," Carstanjen said. "Whatever is capable of being done in this country in four months, whatever can be done—the maximum acceptable processes and protocols—that's where we'll be. That's what we'll do." 

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Carstanjen said he's been energized by the commitment of fans, sponsors, and the community to the Derby.

"Everybody is bringing a sense of wanting to work together and see what the art of the possible will be," he said. "When we talk about these issues with our teams, it's important to remind them that nobody gives you anything. Nobody says it's going to be easy. Nobody says you're entitled to something. Everything we get, we expect to earn. We expect to earn the right to hold our event, earn the right to our customers' business. We expect to work hard to make this event happen.

"Our morale among our sponsors, our partners, and our team members is, 'Let's get on with it.' We have four months to figure this out, four months to prepare. Let's do that."

Castanjen also said he appreciated working with state and local officials to develop a plan for the spring meet.

"We are among a very limited number of businesses permitted to open in the first round in Kentucky, and our team has worked very, very constructively with the governor's office to earn that privilege," Carstanjen said. "It was really gratifying to work directly with Gov. Beshear on the protocols to open Churchill Downs racetrack. If you've seen some of his commentary, he was fairly complimentary of us with respect to the comprehensiveness and the complexity of our processes to keep everybody safe that comes on our property. And that's what you can expect from us going forward."

Carstanjen said he believes the virtual Derby, which will be televised Saturday by NBC, will keep the event in the public eye. The virtual Derby featuring the 13 Triple Crown winners is scheduled for about 5:45 p.m. ET as part of a 3-6 p.m. broadcast.

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"We have partnered with NBC to develop and host a day-long Derby party on May 2, the original date of the 146th Kentucky Derby, with the goal of raising $2 million for COVID-19 emergency relief efforts," Carstanjen said.