The Kentucky Derby

Not long after the state of Kentucky was settled by Europeans in the late 1700s, the horse racing that lead to the development of Kentucky Derby at the Churchill Downs began. The first horse racetrack was actually in Lexington and not Louisville, where the Churchill Downs is located. The Lexington racetrack, called The Commons, started as a park and became regulated due to concerned citizens citing safety reasons. The group of men who organized The Commons formed a Jockey Club shortly thereafter.

Predecessors to the Kentucky Derby

Today when you visit Louisville, Kentucky, you soon notice that the streets close to the river in the Downtown area are wide. Main Street hugs the waterfront and the next block over from there is Market Street. Market Street itself is the heartbeat of this city and is the current location of many thriving businesses that have been around almost as long as the city such as the Haymarket Bar in the NuLu neighborhood.

It was on Market Street in 1783 that local horse races in Lexington originally took place. The attractiveness and popularity of the sport soon led the need for a formal location. In 1805, it was decided that Shippingport Island, in the middle of the Ohio River bordering Louisville, would be the home of the new track known as Elm Tree Gardens. This racetrack was used until 1827 when a new one was built near the bourbon storage warehouses at 16th and Main.
Churchill Downs
Over the years leading up to the Kentucky Derby, there were other racetracks in Louisville such as the Oakland Race Course at Seventh Street and Magnolia and the Woodlawn Course in the Saint Matthews neighborhood. Harness racing, a form of horse racing where the horse is restricted to a trot or pace and pulls a sulky behind it that seats its rider was also popular in Kentucky. The Greenland track for harness racing opened in 1868 just near where the Kentucky Derby eventually would take place.

The man behind the Kentucky Derby

As racing gained in popularity, a man by the name of Meriwether Lewis Clark began plans for a race track that would showcase Kentucky’s race horse breeding abilities and allow the people of Kentucky to experience a European style race. Clark, descended from the famous General Lewis Clark of the Lewis and Clark expeditions of America, was orphaned at a young age when he went to live with his maternal aunt and her sons. Clark named the Churchill Downs after his mother’s name in honor of her.

It was not until Clark traveled Europe as a young man that he came up with the idea to build a racetrack and have a large annual race occur there. In Europe, he happened to learn about a system of gambling called ‘parimutuel’ betting. Since the gambling in America was rather corrupt at the time, Clark’s idea was that he could create a track that honored a different wagering system and circumvented some of the corruption involved in placing bets on horse races. When he was 26 years old, Clark came up with the business model for the Kentucky Derby and presented it to some of the prominent racing leaders such as the English Admiral Rous and France’s Vicompte Darn. He used his cousin John and Henry Churchill’s land to set his plan in motion.

Kentucky Derby beginnings

In May of 1874, the attempts to create a racetrack where there would be a large and well known horse race began to take shape. In addition to selling 320 memberships to the track for the initial $32,000 in funding, Clark filed paperwork for the Louisville Jockey Club. Unlike other racetracks of the time, this had several buildings that welcomed guests to stay at the track. A year later, the first Kentucky Derby took place on opening day in May 1875.

Business History of the Churchill Downs

The Kentucky Derby was a successful business venture, but there were financial problems behind the scenes. Part of this dip in profits is not related to alcohol prohibition, internal corruption, and gambling laws changes in the United States. Instead, the stock market crash of 1893 left the bookkeeping at Churchill Downs in shambles.

Clark was kept as a judge for the track, but Churchill Downs was incorporated after 1894. Regardless, the business problems were not fixed, and the track was taken over in 1902. Finally, in 1903, Churchill Downs and the Kentucky Derby turned their first profit. Over the 1900s, this racetrack management operation would go through a few more drastic changes but since then has continued to be successful and profitable.

History of Churchill Downs, Kentucky Derby style

Derby Hats In 1895, renovations brought in the Twin Spires that the Kentucky Derby is famous for. Since that time, other pieces of character have been slowly added. Some parts of the Kentucky Derby identity have been there since the beginning. Dressing up and wearing hats on Derby Day is a long standing tradition that shows no signs of slowing. Listed below is the history of other notable Kentucky Derby traditions.

Garland of Roses: In 1896, almost 20 years after the first Kentucky Derby, the winning horse was presented with a garland of roses. Today, those roses are red, but in the early days they were often pink and white.
Mint Julep: Since the early 1900s, people have enjoyed a Mint Julep at Churchill Downs. Over 1,000 pounds of mint are delivered to the track to make over 100,000 Mint Juleps during the Kentucky Derby.
Derby Trophy: In 1924, the 50th Kentucky Derby took place and the first trophy was awarded. Each year a new trophy is made by New England Sterling Company for the Kentucky Derby.