Hall of Fame Resort revenue grows with hotel usage and stadium events

CANTON — Revenue generated from events at the Tom Benson Hall of Fame Stadium and use of the DoubleTree by Hilton hotel helped Hall of Fame Resort & Entertainment Co. cover lost sponsorship dollars due to dispute with Johnson Controls.

The company expects to end the year with revenue of more than $20 million, company officials said Friday. New tenants are expected to begin occupying the Fan Engagement Zone shopping complex and the Constellation Center for Excellence later this year.

Michael Crawford, president and CEO of the company developing Hall of Fame Village powered by Johnson Controls, reviewed the company’s financials through the first half of 2022 during a conference call Friday morning. The company released its first-half results on Thursday evening.

The dispute with Johnson Controls, which became public in May, is headed for mediation, Crawford said. Both companies claim the other broke agreements that gave Milwaukee-headquartered US-headquartered Johnson Controls the naming rights to the Hall of Fame Village developments. Under the agreement, Johnson Controls would pay $4.75 million per year as a sponsor.

The sponsorship payment was not made this year due to the dispute. The sponsorship deal was completed in November 2016, before Hall of Fame Resort & Entertainment Co. formed in July 2020 and took over development of the Village project.

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Increase in total revenue for Hall of Fame Resort

Although the Hall of Fame Resort does not receive sponsorship payments from Johnson Controls, the company has still seen increased revenue this year.

The company posted revenue of $2.69 million for the second quarter ending June 30, an increase of 13.9% from $2.36 million last year. The company posted a loss of $9.2 million, or 8 cents per share, compared with a profit of $15.5 million, or 16 cents per share, last year. The profit for the second quarter of 2021 was due to a change in the calculation of the value of warrants issued by the company.

In the first half of 2022, the company’s revenue was $4.79 million, up 12% from $4.28 million last year. The loss for 2022 is $17 million, or 16 cents per share, compared to $110.6 million, or $1.30 per share, in 2021.

More than half of this year’s revenue was generated by the DoubleTree by Hilton in downtown Guangzhou. The company shows revenue through the end of June at $2.51 million, up from $1.91 million last year. Meanwhile, events and rentals at the Hall of Fame Village generated more than $1 million in revenue this year, up from $103,680 in the first half of 2021.

The figures do not include revenue generated by an event related to the Pro Football Hall of Fame enshrinement last week. The company also had revenue from several events in July at Tom Benson Hall of Fame Stadium.

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Construction continues, tenants are getting ready

Over the past year, the Hall of Fame Village has built the shopping complex, the Play Action Plaza performance center.

“In one year, we’ve gone from land to destination,” Crawford said on the conference call.

The Performance Center, a domed structure west of McKinley High School, hosted events during the Pro Football Hall of Fame enshrinement last week, Crawford said. The building is hosting an event this weekend and will host a variety of programs and events later this year.

A tenant is queuing to occupy the third floor of the Constellation office building, and another tenant is queuing for the first floor. A Starbucks is already open in this building.

In the fan engagement area, a Build-A-Bear and Visit Canton store are expected to be occupied by Oct. 1, while a Don Shula restaurant, Smoosh Cookies and TopGolf Swing Suite, affiliated with The Brew Kettle, are expected to open before the year. ends.

Crawford said the grand opening of a 180-room hotel and water park in the village is expected to take place later this year.

Stock Trading Problems

Crawford also reviewed trading in Hall of Fame Resort shares. Earlier this year, the stock price fell below $1 per share, and after trading below $1, the stock was delisted from NASDAQ.

The company’s officers and directors are reviewing options for the shares to relist. Crawford noted that one option is for the shares to start trading at a price above $1 per share. This happened earlier this month when the stock closed above $1 for several days. The company needs this trend to occur for 10 consecutive trading days.

Crawford said he, other managers and directors had acquired stock and planned to increase their personal investment in the company.

There is value in the business, Crawford said on the conference call, adding that he had purchased stock and would continue to make purchases as business rules permit.

“I see where it is (Hall of Fame Resort),” he said. “And I see where it’s going to go.”

Contact Edd at 330-580-8484 or [email protected] On Twitter: @epritchardREP

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