Churchill Downs Pauses $920M Renovation Due to Tariffs, Prioritizes $30M Upgrade for Kentucky Derby 152

Churchill Downs Incorporated (CDI) has paused its $920 million renovation plan for its Louisville racetrack due to rising construction costs from tariff and trade disputes and economic uncertainty. Instead, CDI will undertake a smaller $25–30 million renovation to upgrade the Finish Line Suites and The Mansion, aiming for completion by April 2026, before the 152nd Kentucky Derby. The original plan included major projects like the Skye Terrace and Conservatory, supported by potential $1.2 billion in bonds. Despite strong financial performance, CDI emphasizes financial discipline amid volatile market conditions.

$920 Million Project Paused Amid Economic Headwinds

Churchill Downs’ original plan, announced in February 2025, included three major components: the Skye Terrace Project, the Conservatory Project, and the Infield General Admission Project. These developments were intended to modernize the racetrack’s infrastructure, expand premium seating, and enhance the fan experience. The full scope of the project was scheduled to roll out in phases from 2025 through 2028, with the goal of completing all renovations ahead of the 154th Kentucky Derby.

However, on April 23, CDI confirmed that the project would be paused due to “increasing uncertainty surrounding construction costs related to tariff and trade disputes as well as current macro-economic conditions.” The company emphasized the need for financial discipline in the face of volatile market conditions.

“The decision to pause the Skye Terrace and infield projects was a difficult one for us to make because we do not want to disappoint our fans; however, we have a responsibility to be disciplined given the recent changes in the economic environment,” said CDI CEO Bill Carstanjen in a company statement.

Shift to Smaller-Scale Renovation

In lieu of the larger expansion, Churchill Downs will move forward with a more modest renovation project estimated at $25–30 million. This initiative will focus on upgrading existing facilities, specifically the Finish Line Suites on the fifth floor and The Mansion on the sixth floor of the racetrack.

The Finish Line Suites will undergo a full modernization, including updated finishes and amenities. The renovation will increase the suites’ capacity to 750 guests. Adjacent to the suites, the Trophy Room will also be refreshed with new finishes and the addition of a feature bar, enhancing the hospitality experience for Derby attendees.

The Mansion, originally opened in 2013 and considered one of the most exclusive areas at Churchill Downs, will receive updated finishes and other enhancements. These upgrades are designed to maintain the venue’s premium appeal while aligning with the company’s revised capital strategy.

Both projects are expected to be completed by April 2026, ensuring they are ready for Kentucky Derby 152.

Original Expansion Plans and Financial Backing

The now-paused $920 million project was one of the most ambitious in Churchill Downs’ history. The Conservatory Project alone was projected to cost between $320 million and $330 million, replacing 2,100 temporary seats with 7,000 permanent premium experiences. The Infield General Admission Project, budgeted at $60–70 million, aimed to transform the eastern edge of the infield with permanent structures for general admission patrons. The Skye Terrace Project was also a key component, offering new viewing areas and hospitality spaces.

The full project was contingent on financial incentives from both the city of Louisville and the state of Kentucky. Local officials had introduced legislation to support the development through up to $1.2 billion in industrial revenue bonds. Despite the pause, Metro Council member Markus Winkler, a co-sponsor of the bond ordinance, stated that the legislation would continue to move forward.

“They want to be ready to build,” Winkler said. “It’s not a walk away but a pause due to federal uncertainty.”

Financial Context

The decision to delay the large-scale renovation comes at a time when Churchill Downs is reporting strong financial performance. The company posted a record net revenue of nearly $643 million in the first quarter of 2025, a 9% increase over the same period in 2024. Much of this growth was attributed to the February opening of the Owensboro Racing and Gaming venue in Western Kentucky, which contributed $8.9 million in revenue.

Despite the strong earnings, CDI opted to scale back its capital expenditures in response to unpredictable construction costs and global economic pressures. The company stated it would continue to monitor the economic landscape and may revisit the larger renovation plans in the future.

Timeline and Derby Readiness

While the larger project is on hold, Churchill Downs has confirmed that the scaled-down renovation will be completed in time for the 152nd Kentucky Derby in May 2026. The 151st edition of the race, scheduled for May 3, 2025, will proceed as planned with no impact from the construction pause.

The company reiterated its long-term commitment to enhancing the racetrack and delivering premium experiences for fans and stakeholders. “We remain committed to growing our iconic flagship asset over the long term with projects that will provide new once-in-a-lifetime experiences for our guests and deliver best-in-class shareholder returns,” Carstanjen said.

References

• Churchill Downs halts nearly $1B renovation, citing economic uncertainty
• Race to expand hits wall: Churchill Downs halts nearly $1B expansion
• Citing 'tariff and trade disputes,' Churchill Downs hits pause on $920 million construction plan
• Churchill Downs pausing $920M projects as tariffs cause uncertainty
• Citing tariffs, trade disputes, Churchill Downs to halt nearly $1 billion project
• Kentucky Derby site, Churchill Downs, pauses nearly $1 billion renovation, citing tariffs