The ever-evolving Churchill Downs racetrack will have a significantly different look ahead of next year's Kentucky Derby Presented by Woodford Reserve (G1) and apparently plenty of people are looking forward to taking in that view.
In an Oct. 28 conference call with investors and analysts, Churchill Downs Inc. said they're seeing unprecedented interest in the Derby for this far out from the event. The conference call followed the release of the company's third quarter financials Oct. 27.
"As of yesterday, we have sales and commitments for the new area (the homestretch club) and all-inclusive pricing levels, for nearly all the premium seating on the rail, dining tables, and private VIP lounges, and for more than 50% of the new stadium seats. And we are still more than six months away from the Derby," CDI CEO Bill Carstanjen said Thursday. "Those are very strong results this far out from Derby Day."
Carstanjen said seeing that interest is encouraging as CDI launches a three-year project of planned upgrades at the track.
"This is a nice backdrop against which to pursue these projects that will provide unique experiences for our guests and further solidify the iconic nature of this amazing annual entertainment spectacle," Carstanjen said.
One of the first things those fans will notice is a renovated turf course that Carstanjen said will allow the track to offer more turf races Derby week and attract more international trainers and horses. He said the course should deliver larger fields that generate increased betting interest.
"Our $10 million new turf course is essentially done. We've installed new drainage, new irrigation, and a new turf rail along with 14 acres of a Bermuda grass hybrid that represents the best of today's turf technology," Carstanjen said. "This will allow us to run additional races on the turf course, provide for more running lanes, and greatly increases the durability of the racecourse."
There was no grass racing during the September meet at Churchill Downs, nor will there during its upcoming fall meet as the course takes root.
Carstanjen also said the $45 million project to develop the homestretch club is on track for opening ahead of next year's Derby week.
The third phase of upgrades is scheduled to be ready ahead of the 150th Derby in 2024. Carstanjen provided some new detail on those plans that involve a significant redesign of the paddock area and areas underneath and adjacent to the Twin Spires.
"This project will enhance the overall experience for everyone who comes to our racetrack by creating an immediately visible iconic view of the paddock walking ring and the horses framed against the backdrop of the twin spires," Carstanjen said. "The redesign will also reduce congestion by significantly improving the flow of guests through the paddock and surrounding areas.
"We will create a new paddock club in the area on the first floor under the Twin Spires that will provide never before seen window views of the paddock and the tunnel that the horses walk through, as well as provide hospitality and other amenities for our guests from designated sections of our third-floor clubhouse seating. We are also exploring the addition of terraces, including a new Turf Club balcony overlooking the paddock to add additional premium seating and to further enhance the guest experience and existing premium areas."
In other CDI news:
- At Turfway Park, Carstanjen said the company is on track to open the new grandstand and historical horse racing facility there by 2022.
- Fair Grounds Race Course and Slots has reopened following its closure, along with 15 off-track betting locations, Aug. 27 with the approach of Hurricane Ida. While Fair Grounds and some other properties sustained damage, the track and eight of the OTBs were able to reopen by Sept. 15. By the end of September, all but two of the OTBs had been reopened and Carstanjen said CDI is working hard to reopen the remaining two closed OTBs as soon as possible.
- Carstanjen noted that CDI has property insurance, as well as business interruption insurance that the company anticipates covering most of the costs.
- Carstanjen said despite the company's sale of Arlington International Racecourse, CDI is not down on the Chicago market but was opposed to state requirements for added gaming at tracks. CDI co-owns a casino not far from Arlington.
- "Our decision to sell Arlington Park really wasn't any kind of comment on Chicago or the Chicagoland region or even the state of Illinois. It was really a comment on the archaic racing laws that really haven't been changed in a material way in that state in 30 plus years and no longer worked," Carstanjen said. "While gaming was passed, it wasn't really passed in a form that was enough to make up for the racing paradigm in the state."
- On the gaming side, Carstanjen said CDI is one of four bidders interested in developing a casino in Terre Haute, Ind. CDI has proposed a $240 million facility and Carstanjen said the company expects a decision from the Indiana Gaming Board Nov. 17.
