Lexington Hospitality Businesses Welcome Breeders' Cup

The return of the Breeders' Cup to Keeneland would provide a nice boost for the Lexington economy in a normal year. But that impact is even more forceful after two anything-but-normal COVID-19 pandemic years.

"For two-and-a-half years, it's been a struggle," said Debbie Long, owner of the popular downtown restaurant Dudley's on Short. "So this is really nice to have this event."

How good? One measure would be Dudley's reservations.

"We've been full for Friday and Saturday night (of the Breeders' Cup) since March," Long said. "And Thursday is full; so it feels great."

This is the third time the Lexington-based Breeders' Cup has brought its World Championships home to Keeneland. The track reported a $65 million economic impact from the 2015 event before the Breeders' Cup returned in 2020. Much of that impact from the second year was lost because the pandemic led to a renewal with limited attendance.

"Two years ago was kind of a non-event almost," Long said, saying her restaurant had a small boost but nothing like 2015.

After Keeneland took on those challenges of 2020, Breeders' Cup officials promised to give Lexington and its track another shot as soon as practicable, which is this year.

"I think it's really special this year because it's all—to be honest—the last two years were very difficult, particularly for local businesses, hotels, and the hospitality industry," said Breeders' Cup president and CEO Drew Fleming. "And I think it's so special, and a testament to our board and nominators, that we said we'd come back as soon as we could to support those local businesses—restaurants, hotels, shops—and we're going to do just that."

A Breeders' Cup impact study from the 2017 event at Del Mar near San Diego showed a $97 million impact, Fleming said. If the $65 million impact cited by Keeneland were repeated and adjusted for inflation, Lexington would see an impact of more than $81 million this year.

Fleming said one piece of economic impact this year has already occurred thanks to the $11 million Breeders' Cup is spending with Keeneland on temporary infrastructure to accommodate the World Championships' larger crowds than what Keeneland normally welcomes.

That investment is, "So that our fans from around the world have the world-class atmosphere that they so deserve," Fleming said, noting that it looks as if many of those fans will be coming in early, which allows them to stay late and visit all the many businesses.

"We expect tremendous economic impact here," Fleming added.

Keeneland president Shannon Arvin said everyone at the Lexington track is excited to build on 2015—finally—after what might have been in 2020.

"Twenty-fifteen was a huge success, had a huge buildup, and we had 45,000 people there," she said. "And then in 2020, as you know, we just felt like it was really a success to have had the meet at all, to have had the Breeders' Cup World Championships. We're thrilled for 2022. We can't wait. Everybody's so excited, and we're ready. And the weather's cooperating, too. It's going to be warmer here than it is in L.A. on Friday and Saturday."

Arvin said the event is designed to drive the economic and community impact broadly, including with the Breeders' Cup festival.

"That's one of the best parts of Breeders' Cup is that it's way beyond Keeneland's gates," she said. "It definitely involves the community, and we work really hard with the festival and the city leaders to be sure that everybody is involved, and whether they're at Keeneland or not, they have a chance to celebrate."

The festival included the public being invited to the post position draw at Rupp Arena, outdoor concerts at a downtown park next to the old Fayette County Courthouse that holds the Breeders' Cup offices, and a film festival at the historic Kentucky Theatre on Main Street that was closed for months during COVID and reopened in February.

The event also precedes the major breeding stock sales a few hundred feet from the racetrack in the Keeneland auction pavilion and across town at Fasig-Tipton's Newtown Paddocks.

Arvin said the presence of the Breeders' Cup has a collateral benefit for Keeneland's sales.

"It in and of itself wouldn't drive the sale," Arvin said. "But we're at such an exciting time right now in our market because there's such a demand for Thoroughbreds that I think definitely it helps build the excitement, which in turn yields great economic results also."

Keeneland's sales also benefit from the Thoroughbred stories that the Breeders' Cup provides the marketplace.

"I think definitely it helps build the excitement before the sales because it's tremendous you'll have a horse that was foaled in our farms around the Keeneland grounds, and then often went through the sales ring as a yearling, and then races on the track and then goes back to sell through our sales ring," Arvin said. "Everything comes full circle."

For Long, it's a great run that began when Keeneland's fall meet commenced in early October.

"Keeneland was strong this fall," she said. "They had great weather and we were really busy. And so it runs right from Keeneland (fall) into Breeders' Cup and then the November sale. So we have a nice month-and-a-half, six weeks, of real strong business. We're real fortunate here in Lexington to have all these great events."