Transition Year at Churchill for Kentucky Derby 147

The 147th Kentucky Derby on the traditional first Saturday in May is more of a move toward normalcy than a full return to normal. 

Masks still will be largely required and the crowd likely will be well below 60% of the usual capacity. But around Churchill Downs expressions of relief are common that with some fans returning and the traditional date back in place this year's renewal will be far more recognizable than last September's 146th running without fans in the stands.

"There is growing excitement amongst our team members, our community and our fans with respect to this year's Kentucky Derby," Churchill Downs Inc. CEO Bill Carstanjen said in a teleconference with investment analysts April 22. "Everyone wants to get back towards normal, and our iconic event is an important step on that road for our state and region."

The 2021 Derby represents "the first event, since COVID hit in full force, of this caliber and of this type, with fans in the seats," Carstanjen said encouraging investors to watch the telecast. "So check it out. We'll do it right. We'll make you proud."

Horsemen like Louisville native Brad Cox—who trains the likely Derby favorite Essential Quality and two other expected starters, Mandaloun  and Caddo River —echoed those feelings. They added that they're glad Churchill conducted the race in 2020.

"Last year was odd to say the least with the Oaks and the Derby in September," said Cox, whose Shedaresthedevil  won the Longines Kentucky Oaks (G1). "We were fortunate enough to win the Oaks, but it's almost like there needed to be an asterisk next to that one."

How odd? Eight months ago, Churchill Downs was home to a Kentucky Derby presented by Woodford Reserve (G1) unlike any other in the convergence of health and social crises.

The Derby had been run without interruption, even a century earlier during the Spanish Flu years. But the COVID-19 pandemic delayed the race four months from its traditional first Saturday in May—the first date change since World War II pushed the 1945 race to June. The 2020 Derby also was, for the first time since 1931, the second leg of the Triple Crown.

Then there were the crowds that weren't. After initially hoping to host about 23,000 spectators last year, Churchill limited the crowd to owners and media. No official attendance figure was reported for what appeared to be less than even the reported 10,000 for the first Derby in 1875. The relatively few who attended wore masks, while Kentucky Gov. Andy Beshear, who traditionally would have presented the trophy, stayed home.

Besides the measures taken for pandemic protocols, the racetrack had a Fort Knox feel with fencing around the perimeter and the presence of armed troops and police. Protestors gathered outside, part of the response to the murder of George Floyd by then-Minneapolis officer Derek Chauvin and the fatal shooting by a Louisville police officer of Breonna Taylor during the serving of a search warrant.

One Derby horse, Money Moves , was saddled not by his trainer Todd Pletcher, who remained in New York, but by Pletcher's mentor D. Wayne Lukas.

"The travel restrictions were so difficult," Pletcher said recently. "We were finishing up the end of the Saratoga meet when they're running the Derby, which sounds really strange to even say. So, thankfully, Wayne Lukas helped us out and took care of the horse and did a great job for us. And, unfortunately, the horse didn't run as well as we'd hoped (13th), but we gave him a shot."

Any one of these circumstances would have made a Derby unusual. Collectively they made the 146th running unprecedented.

At the time, Carstanjen reflected on the juxtaposition of a normal Derby and 2020.

"Every year this is a lot of fun and it can be exhausting," he said. "It can be all-consuming. But it's a celebration and it's a lot of fun. But this year (2020), it's not the same celebration, and all the muscle memory that our team members have, with collectively hundreds of years of experience, doing their jobs for Derby, all of that muscle memory has to change because everything's different. …But it is my sincere hope that when we're done, although this will be the the hardest Derby any of us have ever participated in, I hope it's also the one we're most proud of because we've worked so hard to make it happen."

Flash forward to this year's Kentucky Derby, and the community events around it, and more is the same as usual; or at least getting closer to it.

"I think for everyone, horsemen, or just people in general, they are starting to feel better about everything, and things are starting to get back to some normalcy," Pletcher said. "It's been a year that's presented a lot of challenges for a lot of people. And, the horse business, we've been pretty fortunate that we've been able to keep things going somewhat normal in a lot of cases. So we're thankful for that."

In getting back to normalcy around Louisville, Kentucky Derby Festival events are taking place on smaller scales to reduce crowds. The mini-marathon and marathon that used to go through the Churchill infield during training will use different courses and staggered start times, with the mini being spread across four days and with other runners able to run their own routes and submit times later.

The annual Ohio riverfront fireworks smorgasbord known as Thunder Over Louisville was divided into smaller shows at three locations, designed to let people see fireworks from home. A greatly scaled down touring Pegasus Parade took place as a two-day citywide tour with the same goals.

At the racetrack, morning training has been open to the fans since April 17, when a crowd of at least around 100 people attended. Derby week themes are returning, including featuring the arts on the April 24 Opening Night to Thurby.

"We have worked tirelessly to make this year's event, very special for our guests, and we look forward to welcoming them back to our historic facility," Carstanjen told the investment analysts. "It's going to be a great and very welcome experience for everybody."

For Derby Day, between 40% and 60% of reserved seats, depending on maintaining COVID-related venue restrictions in each seating area, have been sold with guests asked to wear masks other than when eating or drinking. Gov. Beshear is expected to attend and present the Derby trophy.

"We will have extra resources dedicated to cleaning and sanitizing high-touch surfaces throughout the week," Carstanjen said in the investment analyst call. The reserved-seat tickets include food and drink "to improve our guest experience and to minimize the need for cash handling. We are also selling a limited number of infield-only tickets at the traditional pricing levels to provide a more affordable option to attend as well."

As to how this Derby will unfold for Churchill financially, Carstanjen was optimistic in the call with investment analysts. Some costs, like cleaning, are greater, but tickets being sold as all-inclusive packages with food and beverage makes revenue more predictable.

Throughout the pandemic, Carstanjen said Churchill's goal has been "to protect the long-term value of our iconic asset, the Kentucky Derby, which remains the longest running annual (consecutively run) sporting event in the history of the United States. We planned aggressively but responsibly for the 2021 Kentucky Derby and will accelerate towards a 2022 event with what we expect will be significantly fewer, if any, COVID-related restrictions."

One investment analyst, Bank of America's Finn Barrett, wrapped up his questions for Churchill officials said he was "definitely looking forward to the Derby and getting back to back normal in 2022."

"Us, too," Carstanjen replied.