Next year, the NHL is planning to hold its last centralized draft at one of the most breathtaking venues in Las Vegas.
Most major league sports no longer get together for their annual drafts. Instead, their teams meet up virtually from their home markets. Starting in 2025, that’s how the NHL will conduct its draft. In 2024, however, the US hockey league will get together like rockstars, one last time.
On Tuesday, NHL Commissioner Gary Bettman announced that the league is planning to hold its 2024 Draft at The Sphere. The iconic venue just opened in September but has already made a name for itself. Its debut event featured U2 to sellout crowds. It was a hit during the F1 Las Vegas Grand Prix, as it followed the cars around the track. And Phish has already booked the Sphere for a four-date tour in April.
Bettman said, “I think it’ll be a pretty well-viewed event, both in terms of the draft itself and the viral use of The Sphere inside and outside using the globe. So, we think it’ll be fun. We think it’ll be dramatic and compelling.”
Wall Street Concerned Over The Sphere’s Financial Plans
So far, The Sphere has been wildly popular with everyone – with perhaps one exception. On Tuesday, Sphere Entertainment announced plans to raise $225 million from a convertible debt offering. Shares of the company stock dropped as much as 20 percent on the news. While financing in this manner isn’t uncommon, the company was vague about how it would use the proceeds to benefit The Sphere’s operations.
Analysts were also confused by the timing of the debt offering. By last count, The Sphere had $453 million of cash on its balance sheet with only $103 million in debt due over the next 12 months. While borrowing extra cash isn’t something that normally concerns analysts, Wall Street’s jitters are understandable, in context.
Sphere Entertainment is a brand-new company, recently split off from its co-owner, the Madison Square Garden Sports Corporation. So, it doesn’t have much of a track record as a public company. In fact, it won’t be until February before analysts get to view a full quarter of financial results from The Sphere. Until then, analysts will be a bit jumpy over any news that doesn’t fit the norm.
