Officials with Churchill Downs Inc. April 25 sounded a bit like a gift giver looking forward to the receiver's reaction as they discussed changes, centered on a $200 million new paddock, that await fans arriving Kentucky Derby Week this year.
One day after releasing a quarterly report that included some record numbers for the first three months of 2024, CDI officials were looking forward to the company's signature event, the May 4 Kentucky Derby (G1), which this year includes added significance as the 150th renewal. In a conference call with analysts and investors, CDI CEO Bill Carstanjen expressed confidence that the changes at Churchill Downs will be well received.
New seating around the paddock will put some fans just feet away from where horses are being saddled. The paddock project also has effectively centered the track's famous twin spires with its main entry.
Welcome to the NEW Churchill Downs Paddock! 🏇🏼#KyDerby pic.twitter.com/IOTlZMtTIY
— Kentucky Derby (@KentuckyDerby) April 24, 2024
"We have completed one of the most significant construction developments ever at Churchill Downs racetrack: the new paddock project," Carstanjen said. "Every guest who enters through our front gates will be treated to breathtaking views of the twin spires and paddock area. Those who have tickets in the newly created sections will enjoy spectacular seating and dining that will deliver a once-in-a-lifetime experience."
For the April issue of BloodHorse magazine, Churchill Downs racetrack senior vice president and general manager Mike Ziegler noted the new first impression fans will receive.
"It's transformational," Ziegler said. "Instead of walking in and seeing the racing office building, they're going to see horses in the paddock and the twin spires. All the new spaces are just sensational. People are going to love it."
The paddock project concludes a three-year overhaul that has seen the track unveil in 2022 the $45 million Homestretch Club that renovated the grandstand area adjacent to the twin spires—adding new seating and hospitality space there. Last year the track added the $90 million "First Turn Experience," which brought standalone stadium seating and hospitality to that area of the track.
That seating in the first turn proved a big hit last year both on Derby day and throughout Derby week. Carstanjen said interest this year in the new seating around the paddock has exceeded expectations.
"The paddock project has been a multi-year, massive undertaking that fundamentally improves the entire venue," Carstanjen said. "As we unveil it for its first Derby, we will undoubtedly find both operational opportunities to improve upon, and new ancillary investments to give the customer more of what they tell us they value. We believe our $200 million investment in this transformative project will provide a foundation around which to further innovate for years to come."
For 2025, Carstanjen said CDI is looking at a smaller project in the $60-80 million range that will enhance the customer experience in another area of the venue. More details will be revealed later this year.
Carstanjen said a strength of the company is learning and improving from each new project. He said that knowledge will continue to be used in the years ahead.
"We'll be looking for ways to monetize everything about our facilities, sponsorships, TV rights, better wagering opportunities; all the different categories that go into driving the entire pie," Carstanjen said. "So it's a process of constant improvement. But the key to unlocking it is the physical facility and the energy that our guests bring when they interact with it."
