The Hall of Fame Resort and Entertainment Co. is continuing to branch into eSports and digital media for the future.
Hall of Fame Resort CEO Michael Crawford said in a conference call Friday that the company got more focused on virtual and remote entertainment after seeing the effects the Covid-19 pandemic.
Going forward, the resort wants to “create synergy between the destination-based assets, its media company, and gaming division,” Crawford said.
“We’re hiring great talent for our gaming division and for our media division ... we think that the fan engagement here will be at an all-time high," Crawford said.
eSports Entertainment Group, a full-stack eSports and online gambling company, is partnering with the Hall of Fame Resort on the new Helix eSports Venue, which will bring an on-site eSports facility to the Canton, Ohio-based resort.
Tournaments hosted at the Helix will be streamed through Hall of Fame Resort's own media company or on Twitch.
"I can imagine kids coming here and looking for great things to do while staying here. Playing eSports is part of that," Crawford said. "You can imagine challenges with some of the greatest to ever play against some of the youth athletes while they're here, and things like that."
A tournament is being discussed for after the building opens in mid-2022.
eSports could also potentially tie into the Hall of Fame Resort's offsite asset strategy in the future, Crawford said.
"We're looking at this as a very synergistic opportunity," Crawford said. "And when I think of mini-replications of the Hall of Fame in NFL cities, eSports could become a part of that."
In the conference call, Hall of Fame resort executives discussed initiatives around digital media and eSports, including upcoming gaming legislation in Ohio, the launch of the Hall of Fantasy League app, the Helix venue, and the “Playbook” NFT series.
“The events that we’re hosting are the best quality, and fans and guests are coming to participate,” Crawford said. “In 2019, we hosted a little over 2 million people. We’re aiming to double that in the coming years.”
Financial Statements
During the conference call, Hall of Fame Resort executives also discussed the company's results for the second quarter, which ended June 30.
Revenue for the second quarter was $2.4 million, up 39% from the same period in 2020, the company reported. However, operating expenses rose 92% in the period to $11.1 million.
The company had a loss from operations of $8.7 million in the quarter. The loss for the same quarter last year was $4.1 million.
Net income was $15.5 million, up from a loss of $9.7 million from Q2 last year. The company said the improvement was mostly due to income of $26.3 million related to “a change in fair value of warrant liability.”
The company finished the quarter with $73.7 million in cash, up from $68.5 million at the end of March.
