- The groundbreaking new Vegas landmark is wrapped in 1.2 million LED lights on the outside, transforming it into a massive, mesmerizing spectacle
- It cost $2.3 billion to build and opened on September 29 with two sold-out U2 concerts
- But on Wednesday, the company reported its latest quarter earnings, which came with operating losses of nearly $100 million
The newest jewel in Las Vegas’ crown, the $2.3 billion Sphere Arena, has reported an operating loss of $98.4 million – just ten days after the CFO quit after being “yelled at” by the CEO ” had been.
The groundbreaking state-of-the-art entertainment venue opened on September 29th with two U2 shows that wowed audiences.
But this week, the company behind the venue announced its results for the fiscal quarter ended September 30 – which came with an operating loss of a whopping $98.4 million.
In announcing the numbers on an earnings call on Wednesday, CEO James Dolan was quick to reassure shareholders, saying the arena is off to a “great start.”
The company attributed the losses to “corporate overhead costs, expenses associated with Sphere Studios and related content and technology development, and costs associated with operating the Las Vegas venue.”
Sphere cost $2.3 billion to build and enchants Las Vegas
U2 can be seen on stage in the middle of the Sphere – a venue that has thrilled the audience
And given the two shows in the quarter generated $4.1 million in event revenue and $2.6 million from suite licenses and advertising, the losses aren’t surprising.
The company expressed confidence that the venue was now fully open.
“Our journey with Sphere is just beginning.” And while it will take some time for Sphere to reach its full potential, we are off to a great start,” said Dolan.
The Sphere opened on September 29 and Dolan said they have “averaged ticket sales of over $1 million every day” since then.
The groundbreaking venue is wrapped in 1.2 million LED lights on the outside, transforming it into a massive, mesmerizing display, the largest ever built.
Inside is a 16K curved screen — measuring about 250 feet tall and 400 feet wide — one of the highest resolution screens ever made.
However, it’s not all plain sailing for the company – the new financials come 10 days after CFO Gautam Ranji resigned on October 30.
Sources told the New York Post that Ranji submitted his resignation after being verbally abused by CEO James Dolan, whose companies include Madison Square Garden and the NBA team New York Knicks.
They said Dolan “yelled and yelled” at Ranji before “calmly” leaving the room in the middle of the meeting and delivering his resignation to the company’s general counsel.
The source said the timing of Ranji’s departure, a few days before the quarterly earnings presentation, was notable.
James Dolan (left), the billionaire owner of Madison Square Garden and the Sphere in Las Vegas, is said to have “yelled and yelled” at Sphere CFO Gautam Ranji (right). Ranji resigned on October 30th
The largest building of its kind in the world, The Sphere is wrapped in 1.2 million external LEDs and features a massive 16K screen inside that is 250 feet tall and 400 feet wide
You said: “A CFO quitting less than a week before earnings is a rarity.”
Ranji, who has been on the job for 11 months, will be replaced on an interim basis by Greg Brunner, the company’s senior vice president.
Dolan addressed Ranji’s departure on Wednesday, saying it wasn’t a “fitting fit” and that they would “move on.”
He added: “It’s a new business.” It’s quite a challenge – and I think we’ve both come to the conclusion that it’s probably not a good fit.
“And so we are facing a change.” But I don’t – there are no problems with reporting or anything like that. That’s all. This is all in good condition. It depends much more on the fit.
“I have to say that the job of CFO at Sphere Years has a strong operational component that we probably didn’t foresee.” So let’s move on. And I don’t expect much to change.”