Despite this, by 1991 Hackett had become vulnerable due to changing demographics (because of continued white flight to the suburbs and an increasing black population, the city was nearly 55% African-American by 1991) as well as controversies during his second full term, including Holiday Inn's corporate headquarters leaving the city for Atlanta, serious problems with the Memphis Housing Authority and embarrassing issues involving the financing of the Pyramid Arena in downtown.
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The forced resignation was a public relations fiasco for the university and athletic director R. C. Johnson, as the deal was finalized immediately following Finch's final game in one of the concession areas of the Pyramid Arena.