- The groundbreaking new Vegas landmark features 1.2 million exterior LED lights that transform it into a massive, mesmerizing display
- It cost $2.3 billion to build and opened on September 29 with two sold-out U2 concerts
- But on Wednesday, the company reported earnings for the latest quarter, which came with nearly $100 million in operating losses
The latest jewel in Las Vegas’ crown, the $2.3 billion Sphere arena, has reported an operating loss of $98.4 million – just ten days after its CFO resigned after being ‘shouted out’ by the CEO.
The groundbreaking, state-of-the-art entertainment venue opened on September 29 with two U2 shows dazzling attendees.
But this week, the company behind the venue announced its results for the fiscal quarter ending September 30 – which came with a hefty operating loss of $98.4 million.
Announcing the numbers on an earnings call on Wednesday, CEO James Dolan quickly reassured shareholders, saying the arena had gotten off to a “great start.”
The company attributed the losses to “operating overhead, costs associated with Sphere Studios and associated content and technology development, as well as costs associated with operating the Las Vegas location.”
Sphere cost $2.3 billion to build and dazzles Las Vegas
U2 takes center stage at Sphere, a venue that wowed the crowd
And with the two shows alone in the quarter – which generated $4.1 million in event revenue – and $2.6 million from suite licensing and advertising – the losses aren’t surprising.
The company said they were confident now that the location is fully open.
“Our journey with Sphere has only just begun. And while it will take some time for Sphere to realize its full potential, we are off to a great start,” said Dolan.
The Sphere opened on September 29 and Dolan said they had “brought in over $1 million in average daily ticket sales every day since then.”
The groundbreaking venue features 1.2 million exterior LED lights that transform it into a massive, mesmerizing display, the largest ever created.
Inside, a curved 16K screen – which measures approximately 70 meters high and 120 meters wide – is one of the highest resolution screens ever created.
But it’s not all plain sailing for the company: the new financial figures come ten days after CFO, Gautam Ranji, resigned on October 30.
Sources told The New York Post that Ranji resigned after being berated by CEO James Dolan, whose company also owns Madison Square Garden and the New York Knicks NBA team.
They said Dolan “yelled and screamed” at Ranji before “calmly” leaving the room in the middle of the meeting and giving his notice to the company’s general counsel.
The source said the timing of Ranji’s departure, days before the quarterly earnings presentation, was notable.
James Dolan (left), the billionaire owner of Madison Square Garden and the Sphere in Las Vegas, has reportedly “yelled and screamed” at Sphere CFO Gautam Ranji (right). Ranji quit on October 30
The largest building of its kind in the world, The Sphere is wrapped in 1.2 million external LEDs and houses a huge 16K screen inside, measuring 70 meters high and 120 meters wide
They said, “A CFO resigning less than a week before earnings is unheard of.”
Ranji, who served for 11 months, will be replaced on an interim basis by Greg Brunner, the company’s senior vice president.
Dolan said during Wednesday’s call about Ranji’s departure that it wasn’t a “good fit” and that they were “moving on.”
He added: “It’s a new company. It’s quite challenging – and I think we both came to the conclusion that it probably wasn’t a great fit.
“And so we…a change is coming. But I don’t: there are no problems with reporting or anything like that. That’s all. That’s all in good condition. It’s much more about the fit.
“I will say that the CFO job at Sphere Years has a heavy operational component that we probably didn’t anticipate. So we move on. And I don’t expect much to change there.’