When Hall of Fame Resort and Entertainment set out to transform Canton, Ohio into a football-themed destination, they promised investors a vision akin to the "Disneyland of football." However, four years of missed financial targets, mounting debt, and a recent default have cast doubt on their ambitious plans, leaving many to wonder if this was more of a "Ghost Town Village" than the grand sports and entertainment empire they envisioned.

Turning the Hall of Fame into a Destination

Hall of Fame Resort was founded in 2016 as a partnership between Industrial Realty Group and the nonprofit Pro Football Hall of Fame. The goal was to leverage the Hall of Fame's assets and Canton's proximity to 15 NFL franchises to create a 200-acre football-themed destination that would draw millions of fans. The original plans included a rebuilt stadium, a four-star hotel, a conference center, a symphony hall, and a senior care facility for aging NFL alumni, among other features.Over the years, the existing stadium has been rebuilt, but efforts elsewhere have fallen short of the initial vision. Instead of a four-star hotel, there is a DoubleTree, along with some retail shops and restaurants, seven artificial turf fields, and one grass field. The company sold 80% of those fields to Josh Harris and David Blitzer for $10 million in December. An indoor waterpark, intended to feature a lazy river and swim-up bar, is only half-built and years behind schedule.

Ambitious Projections and Missed Targets

From the start, Hall of Fame Resort showed red flags to investors. The company went public through a special purpose acquisition company (SPAC), which often struggle to find success outside their stated areas of concentration. In its initial presentations, the company pointed to a previously successful effort to build an amusement park in Sandusky, Ohio – in 1878, a questionable comparison.More concerning were the company's financial projections, which have fallen well short in reality. In its 2019 presentations to shareholders, Hall of Fame projected 2023 revenue would be $131 million, with about a quarter coming from the waterpark, up from a baseline of $40 million in 2020. However, this year's revenue will miss that $24.1 million target, due in part to the loss of USFL games on its campus and the company's failure to book enough new events.

Crushing Debt and Uncertain Future

The company's biggest issue is its crushing debt. Hall of Fame Resort has $229 million in long-term obligations, a level that dwarfs its $8 million market capitalization. This debt burden has made it increasingly difficult to secure financing, forcing the company to explore "alternative models" and "public-private financing models."The recent default on $2.6 million in lease payments for the unfinished waterpark has only exacerbated the company's troubles. The landlord, Oak Street Capital, a subsidiary of Blue Owl, now has the right to seize nearly all of Hall of Fame Resort's physical assets, including its lease rights to the football stadium and equity in various sports fields and commercial parcels.

Potential Lifelines and Restructuring

The default has cast doubt on a proposal by real estate giant Industrial Realty Group to take the business private at $1.98 per share. With the stock now trading around $1.30, the future for shareholders who bought into the dreams of a football-themed empire looks bleak.However, there may still be a glimmer of hope. Industrial Realty Group, Hall of Fame Resort's biggest creditor, could potentially provide a lifeline through a takeover or some form of restructuring. Additionally, Oak Street Capital may choose not to exercise its right to seize all of the company's pledged assets, potentially allowing Hall of Fame Resort to continue its operations, albeit in a more limited capacity.Ultimately, the downfall of Hall of Fame Resort serves as a cautionary tale for investors and entrepreneurs alike, highlighting the importance of realistic planning, prudent financial management, and the ability to adapt to unforeseen challenges. As the "Disneyland of football" dream fades, the future of this once-ambitious project remains uncertain, leaving many to wonder what could have been.