Churchill Downs Inc. Pleased With Full Return of Derby

While the Kentucky Derby Presented by Woodford Reserve (G1) takes about two minutes, most years the Louisville-area events that lead up to the race at Churchill Downs go on for weeks.

After COVID-19 protocols forced the 2020 race to be moved to September and last year limited race attendance and continued to restrict community events associated with the race, officials with Churchill Downs Inc. noted that 2022 feels like a full return of the race as well as the community build-up. In an April 28 conference call with investors and analysts, CDI CEO Bill Carstanjen noted those good vibrations.

"The energy and excitement is back," Carstanjen said. "Our team has been finishing the preparations to welcome everyone to Churchill Downs for an amazing Derby week. We will begin with opening night this Saturday evening (May 1) with live music and Derby-inspired fashion; and of course an exciting evening of horse racing. We will have racing and other festivities and activities throughout the week at the track."

Based on ticket sales and sponsorship interest, Carstanjen predicts another record-breaking year for this year's May 6 Longines Kentucky Oaks (G1) and May 7 Kentucky Derby.

"Based on advance reserved ticket sales, we expect to deliver record Derby results," Carstanjen said. "We will issue a press release after the Derby later that night with all the details. We look forward to seeing everyone next week."

Part of the financial success of the Derby has been fueled by Churchill's efforts to overhaul the grandstand and seating options to offer different seating experiences, which in general are higher-priced seats. The track will unveil its $44.5 million Homestretch Club project this spring and is redeveloping its turn one seating in an $89.2 million project. 

On Wednesday evening Churchill put out a release about the final phase of the three-year redesign: a $185 million-$200 million redevelopment of the paddock scheduled to be ready for the 150th edition of the Derby in 2024. During Thursday's call, Carstanjen provided some detail on that project—noting that it will aesthetically improve the facility but also deliver added revenue.

"The paddock is the heart of the racetrack. It's where the horses are paraded and saddled for everyone to see, where the jockeys mingle before they hear, 'Riders up,' and mount up. It's where some of our guests decide for whom they will cheer and bet," Carstanjen said. "The paddock is truly where the best of the pageantry and spectacle that is the Kentucky Derby converge to create the energy that courses throughout the racetrack.

"The current layout of the paddock restricts circulation between the clubhouse and the grandstand. The paddock roof blocks the views of the twin spires as our customers enter Churchill Downs and the area under the twin spires has limited and outdated amenities. We can also create spectacular new seating and viewing areas where none even exist today. And most importantly, we can reintroduce our historic facility, weaving the best of 21st-century hospitality into the history and the pageantry of America's longest continuously held sporting and entertainment event."

Top tracks throughout the world have successfully added seating around paddock areas. Carstanjen predicted the paddock project would be paid for in eight years.

"We will be adding over 3,600 new, premium reserved seats and 3,250 new standing room only premium tickets," Carstanjen said. "We will also upgrade over 3,700 premium reserved seats. Due to the prime location of new seats, we also anticipate that some portion will be sold with personal seat licenses.

"We will be removing approximately 2,200 existing seats and thus the total number of additional seats added by this project is approximately 1,400," Carstanjen added. "The seats we are replacing are priced lower than the price of the 3,600 new seats due to the lack of amenities and aging accommodations of the current seating areas. When we are done with this project, we will have transformed Churchill Downs racetrack."