Billionaire Mike Repole Buys 1.5% Stake in Churchill Downs

Beverage billionaire and racehorse owner Mike Repole has taken a major stake in Churchill Downs (NASDAQ: CHDN).

With stock down 35% year-to-date and hovering around its lowest levels in six years, Churchill Downs may be a value bet for Repole, who’s a racehorse owner and an investor in other sports entities, including the United Football League (UFL).

“Over the past four days, I’ve purchased 1 million shares and close to a 1.5% stake in Churchill Downs, and I may acquire more. I’m extremely excited about the possibilities,” wrote Repole in an X post earlier today (Oct. 8).

Worth an estimated $2.5 billion, Repole’s fortune is largely attributable to selling two beverage companies – the makers of Smartwater and Vitaminwater and BodyArmor – to Coca-Cola (NYSE: KO) in 2017 and 2021, respectively. He praised the Kentucky Derby as a “crown jewel” asset.

“Churchill has tremendous assets, led by what I believe is the global crown jewel of horse racing, the Kentucky Derby,” he wrote on X. “Last year’s Derby peaked at 24.4 million viewers. To me, that’s a major proof point of how BIG this sport can become.”

Repole Stake Could Spark Rebound for Churchill Downs Stock

While shares of Churchill Downs didn’t react in after-hours trading to news of Repole’s involvement, it’s possible that sentiment will change, particularly if he expands his stake. Some members of the sell-side community believe it’s possible Repole’s name being tied to Churchill Downs could be a catalyst for the stock.

“Both the development of prospective investor engagement and indications of Derby ticket pricing growth should draw a positive reaction in the shares,” notes Jefferies analyst David Katz.

“The -35% YTD stock performance, coupled with the flattish earnings performance of 2025-2027E, suggests upside opportunities remain within the asset base. Although the current investor circumstance is early stage, we believe incremental and alternative views can be productive when growth and stocks underperform.”

In noting he’s eager to work with the Churchill Downs board of directors and CEO Bill Carstanjen, Repole said he wants to create value for investors while improving the economics of the horseracing industry.

“I believe a meaningful ownership stake in Churchill gives me the greatest opportunity to help create value for Churchill shareholders AND make a positive financial impact across all of racing,” he said on X.

No Mention of Regional Casino Sales

While Churchill Downs continues its effort to divest nine regional casino properties, Repole made no mention of the asset sale in his post, focusing exclusively on horse racing operations.

Separately, the gaming company announced new seating and ticket packages for the 2027 Kentucky Derby, scheduled for Saturday, May 1, 2027.

“The 2027 Derby ticket release reinforces our view that the asset maintains meaningful pricing power within its marquee asset,” adds Katz. “While headline increases in core products were generally modest, the larger opportunity remains the company’s increasing use of dynamic pricing, category segmentation, and premium inventory expansion.”

If Churchill Downs can capitalize on Repole’s activist enthusiasm and leverage the pricing power of its crown-jewel assets, the stock may finally find the momentum it needs to break out of its multi-year slump.