Hall of Fame Resort Announces Increase in Third Quarter Profits
TOWNSHIP − The Hall of Fame Resort & Entertainment Co. recorded an increase in third quarter revenue compared to a year ago, while new attractions and plans continue to unfold at Hall of Fame Villageincluding the start of construction of an indoor water park.
Third quarter revenue was $8.7 million, a 149% increase over a year ago, driven by popular events at The Village and Tom Benson Hall of Fame Stadium, including including the USFL Playoffsa Dave Chappelle comedy show and travel concert which was well attended and highly profitable during the Pro Football Hall of Fame Enshrinement Festival.
Revenues were also supported by DoubleTree by Hilton Canton Downtown, owned by the Hall of Fame Resort. The sports events and tournaments of the Village and its components also generate revenue throughout the year.
Meanwhile, the company posted a net loss of $11.1 million in the third quarter, compared to a net profit of $8.1 million in the same period last year.
Michael Crawford, president and CEO of Hall of Fame Resort, also said on a conference call on Tuesday that construction of a Village hotel is on hold until late spring, citing inflation concerns and supply chain constraints. The hotel and water park are expected to open in 2024, he said on the call.
The hotel and the water park are the centerpieces of the second phase of the Village. Construction of the water park is expected to begin soon.
“We have funding to complete phase two,” Crawford said. “That’s what everyone was waiting to hear.”
“We are already thinking about phase three and planning for phase three,” he added.
Revenue and events were among the many bright spots and positive trends highlighted on the earnings call.
“You have to leave very encouraged,” Crawford said of the Village project’s prospects.
Additionally, “the company is intensely focused on expense management,” said Benjamin Lee, the company’s chief financial officer, while noting that another priority is to continue its “diversification” of revenue streams.
New “Winter Blitz” event coming to Hall of Fame Village
Revenue from the event should continue to grow in the fourth quarter, Crawford said, citing the high school football playoffs and a new event called “Winter Blitz.”
More details will be announced about the event, which Crawford described as a “truly unique offering” and vacation experience for the community and visitors from outside of Stark County.
Hall of fame is developing the Hall of Fame Village powered by Johnson Controls, a $600 million+ project to create a football-themed campus and attractions around the Pro Football Hall of Fame.
Shareholders “go all-in”
In September, Hall of Fame Resort requested an extension in its bid to avoid having its stock delisted from the Nasdaq stock exchange.
Despite national economic challenges, many facets of the village are making progress, Crawford said. These factors, however, weigh on the construction schedule of some projects, he explained.
Shareholders are “getting involved” in the entire Village project, which also includes in-person retail sports betting starting Jan. 1, when regulated sports betting becomes legal in Ohio.
The Ohio Casino Control Board in Columbus recently conditionally approved online and retail sports betting licenses for the Hall of Fame Resort & Entertainment Co., which Crawford says “was paramount to the success of our sports betting efforts”.
Crawford said the company has “absolutely no concerns” about meeting the requirements for full approval.
Despite a weak stock price, Crawford said he was confident the Village project would have many financial benefits that will be apparent next year.
The Tom Benson Hall of Fame Stadium, the ForeverLawn Sports Complex, the Constellation Center for Excellence and the Center for Performance. Construction continues in the retail area of the Fan Engagement Zone. Play-Action Plaza is another attraction, which includes a zip line and amusement park style carousel with giant wheelwhich could open in about a week.
Topgolf Swing Suite is expected to open in late December or early January
New business continues to percolate at the Village for the remainder of this year, including a planned soft opening in December for a Don Shula restaurant, Crawford said. A topgolf Swing Suite is scheduled to open in late December or early January in the Village shopping promenade.
Crawford also mentioned Donald Driverplans to open one of its Driven Elite Fitness centers at Hall of Fame Village Constellation Center of Excellence.
The Brewing Kettlea craft brewery and restaurant with multiple locations in the Cleveland area, is also still under construction at the Village.
The retail promenade will include two buildings spanning the Hall of Fame Village campus between the Constellation Center for Excellence and a 180-room Tapestry by Hilton hotel. The promenade also includes a Helix eSports complex operated by Esports Entertainment Group.
Crawford hopes for resolution with Johnson Controls
Crawford also provided an update on the dispute with Johnson Controls over the naming rights deal for Hall of Fame Village. Johnson Controls believes the village failed to meet “financial deadlines,” a point the Hall of Fame Resort disagrees with.
Earlier this year, Johnson Controls said it was ending the deal due to project delays. Both sides are trying to find a solution, Crawford said.
The first step is mediation efforts through a neutral third-party mediator. If mediation fails, either party may submit the dispute to binding arbitration.
Crawford said the company is open to binding arbitration if necessary, but “hopefully it doesn’t come to that” because both parties want to resolve the disagreement.
The Resort & Entertainment Group is awaiting Johnson Control’s response to its proposal.
“I plan to get a resolution,” Crawford said.
Once the dispute is settled, the Hall of Fame Resort will have an opportunity to “expand sponsorships in a very big way in 2023,” Crawford said, noting that “multiple conversations” have taken place on the subject.
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