As Churchill Downs Inc. officials detailed the latest facility upgrade plans for Churchill Downs—the most extensive to date—CEO Bill Carstanjen noted an interesting circular dynamic that occurs relative to the television audience.
When the at-home television (and streaming) audience sees a packed house and shots of fans having a great time watching the Kentucky Derby (G1), it piques their interest in watching the broadcast—helping ratings—while also planting a seed of one day attending. In a Feb. 20 conference call with analysts and investors, Carstanjen said that cycle begins with creating a once-in-a-lifetime on-track experience.
"All that the Derby is, starts with our guests' enthusiasm and experience while at the track," Carstanjen said. "That on-site energy is contagious and highly visible, and it truly defines the television experience for those around the world."
In the years ahead, Carstanjen envisions some of that excitement coming from some new seating areas at the company's flagship track. After the close of trading Feb. 19, CDI announced both a record year in terms of net revenue and adjusted earnings as well as another multiyear series of capital projects for Churchill Downs that will be "the largest expansion and renovation undertaken in the company's 150-year history."
The renovation includes three projects at Churchill: The Skye Reconstruction and Expansion Project, or "The Skye Project," the Conservatory Project, and the Infield General Admission Project.
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The Skye Project will see 11,500 existing seats—uncovered box seats and dated dining areas just past the finish line and extending to the First Turn Club—replaced with 13,300 seats "providing a variety of premium hospitality experiences that include improved track views and upgraded amenities."
The existing Skye Terrace structure will be torn down and replaced with a new five-story structure.
The first three floors are expected to be operational for the 2027 Kentucky Derby (G1), with project completion anticipated for the following edition.
The Conservatory Project will replace 2,100 temporary suites in the infield, which line the homestretch of the racetrack, with new permanent structures providing more than 7,000 premium experiences for guests, including 36 suites. Carstanjen noted that a new tunnel will also be added to access this seating.
The Infield General Admission Project will see the building of three new permanent structures within the infield. The plan is intended to improve the general admission experience and allow CDI to "create ticket upgrade opportunities with additional entertainment and rooftop viewing options." One building will open in time for each successive Kentucky Derby, beginning with the 2026 Run for the Roses.
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"We anticipate having all three projects, as well as the necessary infrastructure improvements, completed by Derby 154 in May 2028," Carstanjen said. "When finished, we will have materially and directly improved the Derby experience for approximately 20% of our current guests, while adding premium reserve tickets representing an additional 10% to our current inventory.
"These projects enable us to continue to better segment and improve our guest experiences and to add a very manageable number of additional premium reserve tickets to optimize our revenue growth over the next several years. We think every single guest will feel the energy and excitement created from these innovative and transformational improvements to Churchill Downs."
Churchill will wrap up another multiyear project that saw the addition of a new paddock last year. This year, it will unveil new seating near the starting gate, where 10,000 bleacher seats will be transformed into 8,500 stadium and box seats. Carstanjen said those recent projects have helped increase fan interest, noting that this year's ticket sales are ahead of last year's 150th edition of the Derby.
