Officials with Churchill Downs Inc. confirmed Feb. 22 that the new paddock will be completed on schedule in time for this year's spring meet that will feature the 150th edition of the Kentucky Derby (G1) May 4 at the company's flagship track in Louisville, Ky.
In a Feb. 22 conference call with investors and analysts, CDI CEO Bill Carstanjen said the $200 million project that also has included a $14 million refurbishing of the Finish Line Suites will be completed before the end of April. The spring meet is scheduled to open April 27.
"On the first Saturday in May we will host the highly anticipated 150th Kentucky Derby," Carstanjen said. "We will introduce the re-imagined world-class paddock and renovated Jockey Club suites—$200 million of exciting investments for our guests that we believe will drive energy and engagement for years to come."
Carstanjen and others on the call brought their own high energy one day after the company announced record adjusted earnings (EBITDA) of $1 billion in 2023 largely behind successful and expanding historical horse racing operations in Virginia and Kentucky but that earnings report also noted the continued success of Kentucky Derby week.
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As part of driving that success, CDI has committed to capital improvements at Churchill Downs racetrack. The new paddock concludes a three-year stretch in which the track added the $45 million Homestretch Club in 2022 that renovated the grandstand area adjacent to the twin spires and added new seating and hospitality space there. In 2023 the track added the $90 million "Turn 1 Experience" that added permanent stadium seating, improved amenities, and hospitality in the first turn, and this year's new paddock project will add seating and dining centered around the paddock area, giving visitors a close view of horses before they race.
"This transformative project will reinvent Churchill Downs racetrack in a way that will touch every one of our front side customers regardless of where they are seated," said Carstanjen of the project also expected to improve the flow of visitors at the facility. "This is a testament to our team's experience and ability to deliver highly impactful capital projects that drive increases in the profitability of the Kentucky Derby. This is the most significant undertaking at the track that I've seen my nearly 20 years with the company. And I'm pleased to tell you that there is much more we plan to do in the future to grow our iconic events."
Later answering a question from an analyst participant on the call, Carstanjen said that the company plans to continue to improve the Churchill Downs facility.
"There are a couple of significant projects that that we think are possible. So our first goal is to execute on this one and prove this one out, which I couldn't feel more confident about," Carstanjen said. "So one thing at a time, execute on this one, take what we learn from this one, and roll that into some of the other significant projects that we've considered. This isn't the call where I reveal what those might be and we haven't decided as a management team or with our board exactly what should come next.
"But I would just point out that when you come to the Derby, take a look around. You still see significant areas that could see material improvement ... It's a big place and there's a lot of vantage points around the track."
Note: The April issue of BloodHorse magazine will look further at the paddock project at Churchill Downs as well as new plans for the paddock at Keeneland.
