Churchill Downs Incorporated (CHDN) Earnings Call Transcript

Good afternoon, everyone, and welcome to today's news conference announcing the Thoroughbred Championship series from Churchill Downs Inc. and the New York Racing Association. Thank you for joining us. Today's news conference is being recorded. Joining us today are Mr. Bill Carstanjen, Chief Executive Officer of Churchill Downs Inc.; and Mr. David Ooh, President and Chief Executive Officer of the New York Racing Association. Bill and David will each provide opening remarks, followed by a moderated question-and-answer session. We received a number of questions in advance, and reporters will also have the opportunity to ask questions live. To allow time for as many questions as possible, we ask that reporters limit themselves to 1 question. I would now like to introduce Sam Ullrich, Churchill Downs, Vice President of Investor Relations.

Thank you, Abby. Good afternoon, and welcome to our joint conference call. A copy of this announcement is available at the section of Churchill Down's website titled News located at churchilldownsincorporated.com as well as in the website's Investors section. Some of the statements made today may include forward-looking statements. All forward-looking statements should be considered in conjunction with the cautionary statements in our press release and the risk factors included in our filings with the SEC, specifically the most recent reports on Form 10-Q and Form 10-K. Any forward-looking statements that we make are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. And now I'll turn the call over to Churchill Downs Chief Executive Officer, Mr. Bill Carstanjen.

Good afternoon, everyone, and thank you for joining us. I'm so pleased to be here today with David work and our partners at the New York Racing Association to announce what we believe is 1 of the most significant developments in thoroughbred racing in decades. At its core, the Thoroughbred championship series is about the future of our sport. Thoroughbred racing has everything people love about sports. It has extraordinary equine athletes, iconic races legendary venues and traditions that have captivated fans for generations. Every year, the Kentucky Derby introduces millions of people to a new generation of stars and reminds us why this port holds such a special place in American culture. But today's fans experience sports differently than they did even a decade ago. They want stories that unfold over time. They want rivalries, standings and meaningful competition that builds from 1 event to the next. They want a championship. They can follow throughout an entire season and they want to see a champion crowned each year to celebrate. That's exactly what Churchill Downs and the New York Racing Association have set out to create. Starting in 2027, the Thoroughbred Championship series, or TCS, will bring together each year the world's most spectacular horses and jockeys who compete in the Kentucky Derby, the Belmont Stakes and the travel stakes and link these extraordinary athletes and iconic races to form a new 6 race series over 5 months at our sports most iconic venues. Each of the 6 races matter as we build new traditions and standards of equine excellence culminating with the crowning of a champion at the finality of the series to be held in September at Churchill Downs Racetrack. You do not have to win every race or even any particular race to become the champion. The winner will be the horse who demonstrates consistent excellence in stamina in the face of the world's toughest competition across the 6 races. Each year, the champion of the race for the base will have earned a special place in our sports history. This isn't simply about adding another series to the calendar. It's about connecting our greatest events into 1 compelling season. It's about giving fans a reason to continue following the sport's biggest stars beyond the Kentucky Derby, and it's about creating meaningful incentives that encourage the nation's leading 3-year-olds to continue competing against 1 another throughout the summer and into the fall. We believe that's good for our fans. We believe it's good for Horseman, and ultimately, we believe it's good for the long-term future of thoroughbred racing. None of this would be possible without our partnership with the New York Racing Association. Together, we've built a championship around some of the most prestigious races and historic venues in the sport, and we share a common vision for growing Thoroughbred racing by creating a competition that is easier for fans to follow, more compelling to watch and worthy of the extraordinary athletes that compete in it. We are also very appreciative of our broadcast partners in our case, NBC, for their support and commitment to helping build this event. Both NBC and Fox have demonstrated consistent and tremendous support for racing, and we look forward to collaborating with all parties to bring more exciting racing content to a national audience. 6 races Three iconic racing venues, 1 champion. Great sports create seasons, great seasons great champions. Today, Thoroughbred racing begins a new chapter. Thank you for joining us today. We're excited to share more about this vision. And with that, I'll turn it over to David. David?

Thank you all for joining us. It's an honor to be here representing the New York Racing Association alongside our partners at Churchill Downs. This partnership represents a generally new approach for our sport. Our goal is straightforward, to build a true seasonal long competition that carries the energy of the spring classics through the summer and into the fall. And in doing so, capture the attention of both lifelong fans and entirely new audiences. The third of the championship series will showcase the sports defining races at its most iconic venues to a national audience across both Fox and NBC. This format is built on standings, the season-long chase that develops real rivalries and brings a play off atmosphere to racing, beginning on the first Saturday in May and continuing into the early fall. It's a structured sports fans instantly understand. And with the reach of our television partners at Fox and NDC, we'll be able to tell the compelling stories and introduce the personalities that have always been at the heart of this sport. The Triple Crown shows this every year how powerful these events capture the public imagination. Our aim is to carry that energy across the full season and give the fans a reason to stay with the sports best 3-year olds from May into the fall. We also believe a stronger, more connected 3-year-old season is good for everyone in the sport, we're the horses, were the horseman and for the fans who follow them. Here in New York, we'll soon begin a new era at Belmont Park, which opens on September 18, following a 3-year project to create a world-class sports and entertainment destination. Contrast that modern venue with the historic Saratoga race course 1 of the state's most beloved attractions year after year. And by linking our tracks with the iconic Twin Spires at Churchill Downs, fans across the country will experience the very best our sport has to offer. That's exactly what we envision for the Thoroughbred Championship series, a dynamic thrilling races from the sports fines venues brought to new audiences through compelling national broadcast coverage matched with an in-person experience to rival any live event anywhere. We're grateful to our partners at Churchill Downs, and we can't wait to get started.