Churchill Downs Incorporated (CDI) has halted a nearly $1bn (£750m/€878m), multi-year renovation project at the horse racing complex in Kentucky.
Work on the 170,000-capacity venue, which hosts the annual Kentucky Derby, has been paused due to uncertain construction costs. This follows the enactment of tariffs by US President Donald Trump.
“The decision to delay these construction projects is due to the increasing uncertainty surrounding construction costs related to tariff and trade disputes as well as current macro-economic conditions,” the company said in a statement.
“In the coming months, CDI will assess the evolving economic landscape and evaluate any changes to the timing and sequencing of these multi-year projects.”
The project, which was announced in February, was expected to bring several changes to the venue’s infield, Skye Terrace and more with the aim of improving the fan experience.
Originally a finishing point of 2028 had been targeted for the series of developments that would collectively mark the largest expansion and renovation undertaken in the 150-year history of Churchill Downs.
The first focused on the section of the venue that starts just past the finish line and extends to the First Turn Club.
It would replace 11,500 existing seats with 13,300 new ones while providing a range of premium hospitality experiences including improved track views and upgraded amenities.
Between $455m and $465m had been earmarked for the first phase, dubbed The Skye Project.
Furthermore, the existing Skye Terrace structure would be replaced with a new five-story structure that would transform the Clubhouse turn.
Meanwhile, the Conservatory Project looked at replacing the temporary suites in the infield which line the home straight on the racetrack.
It would have replaced the 2,100 temporary seats with new permanent structures, providing more than 7,000 premium experiences for guests including 36 suites.
CDI had planned to invest between $320m and $330m on this part.
Several infrastructure improvements budgeted at $55m were then included into the plans including a new tunnel to the infield to facilitate seamless access to and from the front side.
Some of the renovations were expected for next year’s edition of the Kentucky Derby but CDO now states that it will instead deliver a smaller project with renovations of the existing Finish Line Suites and The Mansion at the track.
This is now expected to be completed in April 2026 at an estimated cost of $25m to $30m.
“We are pleased to announce these new projects designed to significantly improve the Finish Line Suites and The Mansion which are two of our most exclusive areas of the racetrack,” said Bill Carstanjen, chief executive officer of CDI.
“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.
“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.”
