Churchill Downs

-4.41%

2. Economic and market conditions: Economic downturns and fluctuations in market conditions can affect consumer spending on leisure activities like horse racing. This could lead to lower attendance and revenue for the company.

3. Competition: Churchill Downs faces intense competition from other horse racing tracks, as well as other forms of entertainment such as casinos and online gambling. This could lead to a loss of customers and market share.

4. Dependence on key events: The Kentucky Derby is the company's biggest revenue generator, and any disruption or cancellation of this event due to unforeseen circumstances could have a significant impact on its financials.

5. Weather-related risks: Weather conditions can greatly impact the horse racing industry, as races are often cancelled or rescheduled due to adverse weather conditions. This could lead to a decline in revenue for the company.

6. Regulatory risks: Churchill Downs operates in a highly regulated industry, and changes in regulations related to horse racing or gambling could have a major impact on its operations and financials.

7. Animal welfare concerns: The horse racing industry has faced criticism and concerns over the welfare of the animals involved. Any negative publicity or legal action related to this could harm the company's reputation and lead to a decline in attendance and revenue.

8. Dependence on broadcast revenue: The company generates a significant portion of its revenue from broadcast rights to its races. Any disruption in these agreements or a decline in viewership could have a negative impact on its financials.

9. High debt levels: Churchill Downs has a significant amount of debt on its balance sheet, which could negatively impact its financial flexibility and ability to invest in growth opportunities.

10. COVID-19: The ongoing COVID-19 pandemic has greatly impacted the horse racing industry, leading to race cancellations and a decline in revenue for Churchill Downs. While the company has implemented safety measures and protocols, the pandemic continues to pose a risk to its operations and financials.