There’s no arguing that Las Vegas Sphere isn’t impressive.
It is a visually stunning venue, the first of its kind, that can light up the Las Vegas Strip skyline. As a technological marvel, the Sphere is unparalleled. It stands out in a city full of design wonders and impossible-to-believe structures.
However, as a business it is a disaster.
The construction of the Sphere cost $2.3 billion, $1 billion over budget. And cost overruns forced Sphere’s original parent company, Madison Square Garden Entertainment, to (MSGE) – Get a free reportto lay off workers and eventually sell its stake in Tao Group Hospitality.
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Under its new corporate structure as Sphere Entertainment, the company also had a rocky start. The new location lost $90 million in the quarter before it opened.
However, CEO James Dolan is undeterred and has high hopes for the Las Vegas Sphere.
“While it takes some time to reach its full potential, we’ve designed Sphere to be busy 365 days a year with multiple events per day,” he said during the company’s fourth-quarter earnings conference call.
That seems a little unlikely considering the biggest problem the company faces in getting bands and solo artists to perform at this unique venue.
Image source: Daniel Kline/TheStreet.
The Las Vegas Sphere has a headline problem
U2 was the headline act at The Sphere, and the band will play 36 shows in a few months. It has been reported that to attract the band, Dolan’s company paid him $10 million and gave them 90% of the ticket revenue.
Those numbers have not been confirmed but have been reported several times by The New York Post.
The problem (and it is a big one) is that The Sphere has approximately 20,000 seats when configured as a concert venue. To play there, a band or musician needs a wildly expensive, custom-made show designed to take advantage of the venue’s unique capabilities, as Dolan described it.
“This month we completed the installation and testing of most of the technological systems within the facility,” he said.
“That includes our next-generation immersive technologies, such as our indoor display plane, Sphere Immersive Sound, an advanced concert-quality audio system, and 4D multi-sensory technologies that enable effects such as vibration, wind, smell, and temperature changes.”
Ultimately, the company plans to build smaller versions of Sphere in other cities. Until that happens, however, the only headliners available are artists big enough to sell out a 20,000-seat venue multiple times a week at high prices.
U2 aren’t the only ones who fit the criteria, but the list of potential headliners for the venue is very small.
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Las Vegas Sphere wants Beyoncé
For a residency at Sphere to make sense, the act must have the pulling power to sell 20,000 tickets a night and the theatrical talent to make the most of the venue’s technology.
Various reports have had the company discussing a series of dates with the Eagles, but it doesn’t make much sense for that band to spend the money needed to build a show for Sphere. Unlike U2, the Eagles don’t have an expensive show. They’re usually just a band on a basic stage.
Dolan reportedly reached out to Beyoncé, according to the New York Post, but his demands could kill any potential deal.
“To put a ring on Beyonce’s finger and seal the deal, her team is asking for around $10 million to produce the diva’s high-tech show, a source said, about the same amount of money Sphere paid. to U2 to put on their show,” the Post reported.
Beyoncé joins the Eagles, Harry Styles, Bon Jovi, Coldplay and Paul McCartney as artists at least rumored to be in discussion for a series of shows at the Las Vegas venue.
In 2024, however, the venue will host more than just headliner performances.
That program will include films made specifically for the venue’s unique setup, as well as other ticketed events, including something called the Sphere Experience.
“The Sphere Experience will be divided into two parts,” Dolan said. “The first part consists of a series of exhibits chronicling the impact of technology on the development of vision and potential. It will begin with a replica of Gutenberg’s printing press and take you through the creation of a metaverse and the development of ai“.
But this is just the opening act.
“It will then continue to the main stadium, where guests will be fully immersed in a multi-sensory cinematic journey from Academy Award-nominated director Darren Aronofsky,” the CEO added.
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