CDI Sells Illinois Property to Chicago Bears
Author:
Megan Butler
Racetrack operator Churchill Downs Incorporated (CDI) has recently revealed that it has completed the sale of a property located in Arlington Heights, Illinois, to neighboring National Football League (NFL) team and franchise the Chicago Bears. The deal extends all the way back to September 2021, when the Bears agreed to pay $197.2 million to acquire the site.
Churchill Downs Incorporated (CDI) has completed the sale of a property located in Arlington Heights, Illinois, to local National Football League (NFL) team and franchise the Chicago Bears.
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Racetrack in Arlington Heights Has a Storied History; First Opened in 1927
The highly prominent racetrack operator Churchill Downs Incorporated (CDI) has announced that it has finalized the sale of a racetrack property situated in Arlington Heights, Illinois, to the neighboring National Football League (NFL) team and franchise the Chicago Bears.
The deal was actually first put down in writing all the way back in September 2021, when the Bears agreed to hand over an impressive $197.2 million to take over the 326-acre site, which, as mentioned, currently hosts the Arlington Heights Racecourse.
The racecourse itself actually has a long and storied history: it first opened in 1927. At the time of its closing, it boasted a capacity of 35,000 seats. No form of racing had occurred or been hosted at the venue since the deal with the Bears was struck in 2021.
CDI First Revealed Intentions to Sell Site in February 2021
The deal between Churchill Downs Incorporated (CDI) and the Chicago Bears extends even a little further than September 2021. Churchill Downs first revealed its intentions to sell the site in February 2021. The Bears are now naturally exploring plans to build a new stadium on the site.
However, worth noting is that, upon the announcement of the deal’s completion, the Bears tempered expectations slightly by clarifying the purchase does not necessarily mean it will go ahead with a new stadium project:
“Finalizing the purchase does not guarantee the land will be developed, but it is an important next step in our ongoing evaluation of the opportunity.”– Spokesperson, Chicago Bears,Press Release
The Bears penned an open letter after the deal officially closed, revealing that there remains an enormous amount of work and regulatory due diligence that needs to be carried out to see if the site can even sustain a modern football stadium in the first place:
“There is still a tremendous amount of due diligence work to be done to determine if constructing an enclosed state-of-the-art stadium and multi-purpose entertainment district is feasible.”
The sale of the site to the Chicago Bears arrives just ahead of the scheduled announcement of Churchill Downs Incorporated’s (CDI) financial showings for the 2022 fiscal year. The operator is expected to release its full-year report on February 23rd, 2023.
CDI Building Dedicated Horse Racing Betting App for DraftKings
In other major Churchill Downs Incorporated (CDI) news, the racetrack operator announced in December 2022 that it had stepped into a lucrative multi-year deal with DraftKings, resulting in it beginning to develop an exclusive parimutuel wagering horse racing product for the gambling giant – titled DK Horse.
CDI’s B2B horse racing subsidiary TwinSpires will be the ones building the white-label solution for DraftKings, which will include actually handing over its advanced deposit wagering technology to DraftKings.
The final part of the deal specifies that CDI will provide parimutuel wagering rights to content that the business owns or controls, such as the Kentucky Oaks and world-famous Kentucky Derby. CEO and chairman of the board of DraftKings, Jason Robbins, expressed strong hope that the operator will bring horse racing fans into its fold as a result of the deal:
“We are excited to collaborate with Churchill Downs Incorporated, not only to give our existing customers an opportunity to engage with parimutuel horse wagering, but also to acquire new customers efficiently during marquee horse racing moments. Due to the structure of the agreement, we expect this new product offering to be immediately profitable.”– Jason Robbins, CEO and Chairman, DraftKings,Press Release
Churchill Downs Purchased Ellis Park in September 2022
And back in September 2022, Churchill Downs Incorporated (CDI) finally completed its previously announced acquisition of the Ellis Park racetrack and gaming facility in Kentucky for a total sum of $79 million.
The deal was taken care of with cash on hand, as well as via CDI’s existing credit capabilities. Much like its deal with the Chicago Bears, the deal paves the way for Churchill Downs to take over Ellis Park’s tentative plans to construct a track extension facility at Owensboro’s Towne Square Mall.
Churchill Downs Incorporated (CDI) chief executive, who is named Bill Carstanjen, took the opportunity to already reveal to observers that construction had already begun in both Henderson county and on the Owensboro racing site:
“Our team is already hard at work in both Henderson and Owensboro. In the coming days, we look forward to sharing more about our plans to invest in the racing infrastructure at Ellis Park and to drive significant purse improvement through the Owensboro historical racing opportunity.”
