Latest news with #Carstanjen
Time of India
03-05-2025
- Business
- Time of India
Have Donald Trump's tariffs impacted the Kentucky Derby 2025? All about the economic impact
The 151st running of the Kentucky Derby 2025 promises the usual spectacle on the track, but economic uncertainty driven by President Donald Trump's evolving tariff policies is casting a long shadow off it. #Pahalgam Terrorist Attack Code of war: India and Pakistan take their battle to the (web)front Forex reserves show a pauperised Pakistan, a prospering India Pakistan conducts training launch of surface-to surface ballistic missile From delayed construction to slower ticket sales, stakeholders across the board are feeling the ripple effects of trade tensions. Renovation Plans Halted Amid Cost Concerns Churchill Downs, the iconic venue that hosts the Derby, recently paused a $900 million redevelopment project that had been scheduled to debut next year, as mentioned in a report by NBC. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Duong An Don: Beautiful New Senior Apartments with Two Bedrooms Senior Apartments | Search Ads Search Now Undo The upgrade was expected to bring 20,000 new seats, 36 luxury suites, and major infrastructure enhancements. Bill Carstanjen, CEO of Churchill Downs Inc., cited unpredictability in material costs as a key reason for the halt. 'Uncertainty is a theme out there in the American economy,' Carstanjen remarked, as mentioned in a report by NBC. Live Events 'We did pause our $900 million construction project... because we weren't sure what things were going to cost.' Tariffs have driven up the price of essential construction materials like steel and disrupted supply chains, making cost projections difficult. Churchill Downs officials described this as a "double whammy" — rising prices coupled with logistical delays that have created "unanticipated and currently unquantifiable expected cost increases." Attendance Holds, But Spending Softens While the Kentucky Derby 2025 is still expected to draw crowds consistent with past years, the track has noted some hesitancy in consumer spending. Lower-tier ticket sales have shown signs of lagging, and sports wagering has dipped by over $1 million. Carstanjen attributed the downturn to weakened consumer confidence, adding that despite the event's strong brand, some economic headwinds are being felt. 'There is overall softness in certain parts of the operation, especially where everyday consumers are involved,' he said. Political Backlash Over Tariff Impact Kentucky Governor Andy Beshear has openly criticized the Trump administration's economic strategy, describing the tariffs as 'an attack on the American people.' In a state that is heavily reliant on trade, Beshear warned that both small enterprises and major employers are facing financial strain. 'The president's current tariff plan is causing chaos in our economy,' he said at a recent press briefing. 'UPS has announced layoffs, and mid-sized businesses are being squeezed.' Even Kentucky's two Republican U.S. senators have voiced concern over the ongoing tariff policy. Broader Economic Repercussions in the Region Beyond Churchill Downs, various industries closely tied to Kentucky's identity are feeling the pinch. Experts point to sectors like agriculture, bourbon, energy, and manufacturing, all of which are vital to the state's economic fabric. Bourbon alone has a $9 billion annual impact in Kentucky. Kate Shanks, Vice President of the Kentucky Chamber of Commerce, emphasized the wider consequences of Churchill Downs' decision. 'A billion-dollar investment paused has a regional ripple effect,' she said. 'We were looking at significant job creation across skilled trades and materials suppliers. That's now in limbo.' With an estimated 480,000 Kentucky jobs linked to trade , the Chamber warns that tariffs could cost each resident as much as $1,200 annually. Derby Spirit Endures, But Uncertainty Lingers Despite economic pressures, long-time attendees like Ed Massey of New Jersey remain optimistic. 'Tariffs won't dampen the Derby spirit,' he told NBC News. 'But the question is: can the event grow under these conditions?' As preparations for the Kentucky Derby 2025 continue, the grandeur of the sport remains intact. But behind the scenes, economic realities are forcing the track — and the state — to reckon with new limits. FAQs Why are horses 3 years old in the Kentucky Derby? The English horse owners who first established these races may have also had selfish reasons for instituting the limit. Some racing horses get worn down after they turn 3 * and never race as 4-year-olds; the English horsey set wanted to ensure that their prize thoroughbreds got a chance on the track Is the Kentucky Derby only for male horses? The Derby is for male and female 3-year-olds only.
NBC News
03-05-2025
- Business
- NBC News
How tariffs are affecting the Kentucky Derby
There are no sure things on the Churchill Downs racetrack — and this year, there are few sure things around the track as well. Uncertainty over the economy due to President Donald Trump's oscillating tariff policies looms large over America's longest running sporting event and the most exciting two minutes in sports — the Kentucky Derby. The track itself has put some projects on hold. 'Uncertainty is a theme out there in the American economy, and that's one we pay attention to,' said Bill Carstanjen, CEO of Churchill Downs. 'So we did pause our $900 million construction project primarily, and mostly because we weren't sure what things were going to cost. And whenever you build something, you've got to be very careful on the cost side.' Churchill Downs announced last week it was pausing a major renovation project it had announced in February due to the uncertainty in the economy and Trump's tariffs. The racetrack had planned to debut these renovations during the next year's racing season, including more than 20,000 new seats, 36 luxury suites and upgrades to the infrastructure. But the higher price of steel — crucial to construction — and supply chain interruptions, created a 'double whammy' for Churchill Downs. Carstanjen said the tariffs and current economic environment created 'unanticipated and currently unquantifiable expected cost increases in materials.' While the 151st Kentucky Derby is on track to meet its normal attendance, Carstanjen did see some hesitance in sales this year, particularly in the lower-tier tickets. In addition to ticket sales, Carstanjen said Churchill Downs is seeing overall 'softness' in some areas of betting, including a slip in sports wagering to the tune of more than $1 million. He blamed faltering consumer confidence. Kentucky Gov. Andy Beshear, a Democrat in a largely Republican state, called Trump's tariffs an 'attack on American people' and noted that both Republican senators from his state have also criticized the president's economic strategy. 'The president's current tariff plan is causing chaos in our economy,' he said at a press conference Thursday. 'It is slowing our economic growth. It's hitting large businesses, with UPS announcing a lot of layoffs. It's hitting small and medium-sized businesses.' Many Derby goers were cognizant of Churchill Downs' announcement, especially those who were impressed by this year's renovations. Ed Massey of New Jersey has been coming to the Derby for decades. 'Tariffs are not going to get in the way of the 151-year Derby spirit,' he told NBC News. 'But I do worry about the future growth of the event. The Derby will outlast any tariffs, but will it be able to grow? That remains to be seen.' Horse racing and betting aren't the only two Kentucky staples that are taking a hit from the tariffs. Economic experts in the state say they've already seen an impact on agriculture, energy, manufacturing and bourbon — which has a $9 billion impact in Kentucky. 'A billion-dollar investment is more than just what it means for the track — that will have a ripple effect on the economy in the region,' said Kate Shanks, vice president of the Kentucky Chamber of Commerce. 'You've got to purchase lumber. You've got to purchase glass, steel, hire electricians, HVAC workers, and we were eager to see that happen. And now that's been paused, and it's absolutely going to have an impact on jobs in the region.' According to the Kentucky Chamber of Commerce, the state has approximately 480,000 jobs that depend on trade. The chamber estimated these tariffs will cost the average Kentuckian up to $1,200 per year.
Yahoo
02-05-2025
- Business
- Yahoo
Churchill Downs Makes Disappointing Announcement Before Kentucky Derby
The 151st running of the Kentucky Derby is set for Saturday, May 3 with famed horse trainer Bob Baffert making his return from a three-year suspension after his horse Medina Spirit won the Derby in 2021 but failed a drug test. Churchill Downs CEO Bill Carstanjen made it clear Baffert would be welcomed back this year along with his horses, Rodriguez and the juvenile champion, Citizen Bull. '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.' Advertisement Baffert's return isn't the only thing of note ahead of the Kentucky Derby this year, though. Late last month Carstanjen revealed the nearly $1 billion renovation project at the Louisville track was placed on pause amid inflation and ongoing global trade disputes as a result of tariffs handed down by the United States. "A lot has changed in the world in the past nine weeks since that (February announcement), including increased general economic uncertainty and risk of significant inflation, driven in part by the new tariffs that the U.S. intends to charge on products from almost every country in the world," Carstanjen said, via the Courier Journal. "This has created unanticipated and currently unquantifiable expected cost increases in most materials." With the main project on pause, Churchill Downs still plans a less costly project of around $30 million to update areas like The Mansion, the Finish Line Suites and the Trophy Room. Carstanjen made it clear the $1 billion renovation is still planned, but will remained on pause for the rest of the year. Advertisement "We will use the coming months to assess the evolving economic conditions as well as to evaluate any changes that we want to make to the timing and sequencing," Carstanjen said. "This is an opportunity to revisit and to make sure we deliver products that best meet and exceed our customers' expectations." The 151st running of the Kentucky Derby is set for approximately 6:57 p.m. ET on May 3. Related: Coca-Cola Makes Big Announcement After Pepsi's Bad News
CNBC
02-05-2025
- Business
- CNBC
Churchill Downs CEO says interest in the Kentucky Derby is strong despite global 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."
Forbes
25-04-2025
- Business
- Forbes
$920 Million Kentucky Derby Renovation Paused Over Tariff Concerns—‘Unquantifiable' Costs Blamed
Churchill Downs' four-year marquee project—announced just two months ago—is already off the burner due to economic uncertainty and a surprising 'hesitancy' in ticket sales for its marquee race. Mystik Dan #3, ridden by jockey Brian J. Hernandez Jr. (R), crosses the finish line ahead of Sierra ... More Leone #2, ridden by jockey Tyler Gaffalione and Forever Young, ridden by jockey Ryusei Sakai to win the 150th running of the Kentucky Derby at Churchill Downs last year. (Photo by Michael Reaves) The parent company of the Kentucky Derby racetrack is temporarily pausing a $920 million four-year expansion of the iconic horseracing venue due to 'increased general economic uncertainty and risk of significant inflation' driven by President Trump's tariffs, which 'has created unanticipated and currently unquantifiable expected cost increases in most materials,' William Carstanjen, CEO of Churchill Downs Inc., told investors on an earnings call Thursday. The project was first announced in the company's previous quarterly financial report in February, but 'a lot has changed in the world in the past nine weeks since that earnings call, including increased general economic uncertainty and risk of significant inflation,' Carstanjen told Wall Street analysts. The Louisville-based gambling and racing company made the announcement as it released first-quarter earnings, which were overall positive with record net revenue up 9% compared to the same period in 2024. 'Derby is their number one asset, and they just don't want to use shareholder capital at the wrong time, particularly when their stock price is where it is,' Chad Beynon, a senior analyst covering gaming, lodging and theaters for Macquarie Capital, told Forbes. Shares of Churchill Downs cratered 16% since Thursday's earnings announcement, and are down 33% year to date. On Churchill Downs' earnings call in late February, the company announced the nearly $1 billion four-year project, which included tearing down and rebuilding the racetrack's Skye Terrace, building new permanent infield venues for premium ticket holders and upgrading amenities for general admissions guests. But President Donald Trump's tariffs have 'created unanticipated and currently unquantifiable expected cost increases in most materials,' Carstanjen told investors. Consequently, Churchill Downs is pausing the project 'to let things settle down so that we can better determine any permanent changes in the cost of this project and better evaluate any changes in the overall economic environment.' Company executives told Wall Street analysts the pause 'could literally mean a quarter or it could mean several quarters,' Beynon said. 'So I think they're just being very disciplined, where this project will get done at some point.' $210.7 million. That was the record amount bet on the 2024 Kentucky Derby race, representing roughly two-thirds of the record $320.5 million wagered on all the races run at Churchill Downs on derby day. 'Year-over-year growth for the event ticket sales subindustry decelerated by approximately 10 percentage points between April 2nd and April 19th, suggesting that consumers are tightening their wallets when it comes to this expensive, very discretionary area—at least for the time being,' Michael Gunther, VP and head of insights at Consumer Edge, told Forbes. His firm analyzes credit and debit card data to track event ticket sales through platforms like Ticketmaster, Stubhub, Seatgeek, Axs, Front Gate, among others. 'The step-down in growth after April 2nd's larger-than-expected tariff announcement is notable, with continued economic uncertainty continuing to pressure spending.' Whether in an environment of reduced discretionary spending, the Derby will draw the enormous crowds it has historically. 'In 2025, in my opinion, [we] took a little bit of a jolt because we didn't have the endless pool of demand that we've seen in prior years,' Carstanjen told investors, noting some 'hesitancy' in sales, particularly for lower-tier tickets, which he pointed out are 'not inexpensive tickets, call them $1,000-plus tickets.' In a note to investors, Beynon wrote: 'For the Kentucky Derby this year, [Churchill Downs] management expects roughly flat EBITDA; recall that this is comping against an impressive $30 million EBITDA increase from last year's Kentucky Derby.' What's On The Kentucky Derby Menu? Chef Robert Lopez Breaks It Down (Forbes)
