HOFV stock soared more than 40% in after-hours trading on December 31, 2020, after the company announced a partnership with StakeKings.
Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV, HOFVW), the only resort, entertainment and media company centered around the power of professional football, today announced that it has partnered with StakeKings to power the Hall Of Fantasy League (“HOFL”), the first community-backed national fantasy league. The partnership will introduce staking – the concept of making a financial contribution to cover a portion of a participant’s entry or buy-in fee, and in return taking a percentage of the winnings – to a season-long fantasy sports league for the first time.
“We are excited by the significant progress we have made on our go-to-market strategy for the HOFL since we acquired the League this past summer,” said Michael Crawford, President and Chief Executive Officer of HOFV. “As a result of this important partnership with a category leader in StakeKings, we now have the infrastructure we need to power the HOFL and allow individuals to purchase a stake in a communally shared fantasy team that competes over the course of a season, not just on a given day. We are the only fantasy league to offer this kind of opportunity to the public.”
The StakeKings platform will enable the public to partially stake any of the HOFL’s 10 regionally based franchises, thereby becoming team stakeholders and gaining access to exclusive content, communications, and team governance features. Stakers will be entitled to their pro rata shares of their teams’ winnings and will have opportunities to provide input on key roster moves while engaging directly with their franchises’ Front Office teams and fellow stakeholders.
“StakeKings is excited for our partnership with the HOFL,” said Tyler Hancock, Founder and CEO of StakeKings. “Together, we look forward to bringing a new form of entertainment to fantasy football, and we can’t wait for next season!”
The HOFL’s inaugural draft is expected to take place in summer of 2021 and its first season will commence alongside the 2021-22 NFL season. Announcements pertaining to franchise locations, team names and logos, front office personnel and league rules will be announced in the months leading up to the draft. The League will leverage its access to the Pro Football Hall of Fame, NFL alumni and fantasy football personalities to create original video, audio and written league-focused content that will be hosted on its platform, helping to entertain, educate and engage team stakeholders throughout each week of the season.
On December 15, 2020, Maxim analyst Michael Diana initiated coverage of Hall of Fame Resort & Entertainment (HOFV) with a Buy rating and $5.00 price target. The analyst cites the management’s “detailed” growth plan to reach $167M in revenue and $54M in EBITDA in 2026. Diana adds that the stock’s 26% discount relative to Disney (DIS) based on its enterprise value to expected 2024 EBITDA multiple is “appropriate at this time”.
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