Churchill Downs Incorporated: Quick Thoughts on the New Thoroughbred Championship Series

Research evidence excerpt

Churchill Downs Incorporated: Quick Thoughts on the New Thoroughbred Championship Series

J P M O R G A N North America Equity Research

03 August 2026

Churchill Downs Incorporated Overweight

CHDN, CHDN US

Quick Thoughts on the New Thoroughbred Price (03 Aug 26):$83.47

Championship Series

Gaming & Lodging

Earlier today, CHDN announced that it’s partnering with the New York Racing Daniel Politzer, CFA AC

Association to create a six-part Thoroughbred Championship Series (TCS) (1-212) 622-0110

beginning in 2027. The competition will kick off with the Kentucky Derby in early daniel.politzer@jpmorgan.com

May, followed by Belmont Stakes in June, with two of the last four races each Samuel Nielsen

taking place at Saratoga (NY) and Churchill Downs. Notably, Preakness Stakes (1-212) 622-1366

will not be part of the TCS. We view this as a slight positive for FY27 EBITDA samuel.nielsen@jpmchase.com

(tough to handicap), and consistent with CEO Bill Carstanjen’s recent EPS call Michael Hirsh, CFA

commentary on CHDN pursuing opportunities for high quality growth built (1-212) 622-0295

michael.hirsh@jpmchase.com

around TwinSpires and the Derby. J.P. Morgan Securities LLC

We caught up with CHDN management, and our key takes are as follows: (1)

Minimal to no capital will be required; (2) for CHDN, the series will allow CHDN

to better leverage its existing racetrack cost structure, providing additional

opportunities for ticketing, sponsorship, and wagering opportunities; over time,

CHDN could also leverage the Thoroughbred Championship Series to drive its

broadcast fees higher; (3) a lot of details are still being flushed out, but this should

help drive higher engagement and interest in the sport, as it evokes a similar/

prolonged “cup structure” that tennis and golf benefit from.