Churchill Plans Further Seating Upgrades in Years Ahead

Confident there continues to be support for new seating options at its flagship track for Kentucky Derby (G1) week, Churchill Downs Inc. officials Oct. 24 outlined major upgrades and seating expansion for the area past the finish line as well as in the infield.

In meeting with analysts and investors during a conference call that also outlined record third-quarter results, CDI CEO Bill Carstanjen noted previously announced facility upgrades at Churchill Downs are on schedule before unveiling plans for new seating projects past the finish line and in the infield.

"We are also planning to complete over the next three to four years a series of renovation and development projects that will provide new and extraordinary experiences in the sections starting approximately 180 feet past the finish line to the First Turn Club," Carstanjen said. "The scope of this project covers approximately 500 feet of racetrack frontage, starting with the Sky Terrace structure, which we will take down and replace with a new building that will extend through the box seats adjacent to the First Turn Club. 

"To put this further in perspective, the First Turn Club has approximately 330 feet of track frontage. These projects will replace over 10,000 existing seats that currently consist of uncovered box seats and dated dining areas with approximately 16,000 seats representing a variety of premium hospitality experiences. This is a considerable undertaking and will meaningfully increase the number of reserved seats and experiential options at various price points on the front side of the racetrack."

The track also plans to add permanent seating options in the infield. That project may include the addition of another tunnel.

"We are also designing a series of new infield experiences that will, in part, convert the current temporary infield structures—where we see approximately 800 guests—to permanent premium structures providing hospitality for approximately 7,000. Accomplishing this requires a new ingress and egress option for our guests to reach the infield," Carstanjen said. "Hence, we are exploring a novel additional tunnel between the front side and infield that will be part of the overall experience as guests arrive to a re-imagined Oaks and Derby infield."

As for the timing of these projects, Carstanjen expects some to be completed by 2026 and others in 2027 or 2028. 

"Collectively, these projects will by far be the largest expansion we have done to date, and will increase our premium seating inventory by approximately 20%," Carstanjen said. "We will provide a more detailed update on these multiyear development plans at our next earnings call in February 2025. Our commitment to investing in our flagship assets reflects our belief in our ability to generate consistent, adjusted EBITDA growth with nominal levels of risk for years to come."

In July CDI announced an $80 million-$90 million project to renovate the existing grandstand to update ticketed seating options and adding amenities to that seating. The Grandstand Club and Pavilion project aims to replace existing outdoor aluminum bleachers with 8,300 new seating varieties, including covered and uncovered stadium-style seats as well as rail boxes along the outer rail.

The project will see new concessions, bars, and wagering windows added on the first floor as well and aims to improve and add amenities for 2,800 guests in the existing third-floor box seats under the Starting Gate Suites. Carstanjen said the projects are on schedule to be ready before the 2025 Kentucky Derby. 

"We are on track to complete this project on budget and on time for next year's Kentucky Derby," Carstanjen said.