Churchill Downs CEO sees strong demand despite uncertainty

The 151st running of the Kentucky Derby is set for Saturday amid a backdrop of global economic uncertainty, waning consumer confidence and tariffs that could cause construction costs to rise.

Churchill Downs has paused a $900 million capital improvement project at its storied race track in Louisville, Kentucky, the site of the world’s most famous horse race.

CEO Bill Carstanjen blamed tariffs for putting construction on hold.

“We weren’t sure what things were going to cost. Whenever you build something, you got to be very careful on the cost side, because you need to get a return on your capital,” Carstanjen told CNBC.

But where demand and fan enthusiasm is concerned, Carstanjen said it’s on pace to match that of last year. International participation at the Derby has never been higher, he said, with the race set to be broadcast in a record 170 territories.

This year also marks a return for famed horse trainer Bob Baffert, following a three-year-suspension from Churchill Downs properties after his horse Medina Spirit won the Derby in 2021 but failed a drug test.

This year Baffert’s horses are Rodriguez (12-1) and the juvenile champion, Citizen Bull.

It’s a new chapter for the two-time Triple Crown-winning trainer and for the Churchill Downs CEO, who oversaw Baffert’s temporary banishment.

“Bob earned his way into this event. He earned his way into this race,” Carstanjen told CNBC. “He’s welcomed back. This is America. Everybody gets second chances.”