The Las Vegas Sphere is discovering that with great size comes great operating costs.
Earlier this week, the company that owns the $2.3 billion state-of-the-art entertainment venue and eye-catching attraction reported an operating loss of $98.4 million during the final quarter.
The period ended Sept. 30, just a day after the Sphere opened with band U2 performing the first show of its multimonth residency.
The report of the large operating loss came days after Sphere Entertainment’s chief financial officer Gautam Ranji quit the company after what The New York Post reported as “yelling and screaming” from CEO James Dolan directed at Ranji.
According to a filing with the Securities and Exchange Commission, Ranji’s departure was “not a result of any disagreement with the company’s independent auditors or any member of management on any matter of accounting principles or practices, financial statement disclosure or internal controls.”
Cost and revenue
Sphere Entertainment said the operating losses were due to corporate overhead, expenses related to Sphere Studios, associated content and technology development, and costs to operate the venue.
The Sphere, which sits on the Las Vegas strip, claimed revenue of $4.1 million from the two sold-out U2 shows and another $2.6 million from suite licensing and advertising fees.
Dolan, who also owns the New York Knicks and Madison Square Garden, did say during the earnings call that Sphere is bringing in $1 million a day in ticket sales, so there’s confidence that the venue is heading in the right direction now that it is up and running.
“Our journey with Sphere is just beginning, and while it will take some time for Sphere to realize its full potential, we're off to a great start,” Dolan said. “We are building positive momentum across Sphere and remain confident that we are well positioned to drive long-term value for shareholders.”
Main attraction
The Sphere is a 360-foot, 500-foot auditorium that offers 18,000 seats and a 16K, 250-foot-tall, 410-foot-wide state-of-the-art curved screen on the inside.
The outside is made up of 1.2 million LED lights with stunning visuals seen from all over Las Vegas. The NBA and NFL’s Sunday Ticket have been featured on the mammoth attraction.
It’s just one of many that bring tourists and sports bettors to Nevada, a state that generated $811.3 million in legal sports betting handle in September.
Stay updated with the latest picks, odds, and news! Tap the 
to add us to your favorites on Google News to never miss a story.
