Washington, DC, looks set to get America’s second Sphere
Revenue for the Las Vegas version of the big orb has soared, but the Sphere is still a money pit.
Following the huge spherical arena’s successful start in the entertainment capital of America, the country’s political capital is the next city pondering a Sphere.
The operator of Las Vegas’ Sphere announced on Sunday that it will be developing its second US location at the National Harbor in the Washington, DC, metropolitan area, aiming to build its first smaller-scale, 6,000-seat venue and adding to Sphere Entertainment’s “global network of Spheres” after the company signed a franchise agreement with the governing body of Abu Dhabi last July to build a Sphere in the Middle East.
Rounding up
Though Sphere Entertainment currently has only one namesake landmark operating under its belt, the company, previously under the umbrella of Madison Square Garden Entertainment before a spin-off, has a lot of seasoned executives in the live entertainment world.
Just like the iconic New York venue, the inside of the Sphere works as a sports and entertainment space that can accommodate up to 20,000 people. Hosting acts including the Backstreet Boys and U2 helped to rake in some $156 million in the third quarter, up 37% year on year.
Tasked with growing its glowing ball business, the company has an additional revenue stream other than events — the arena’s LED-lined exterior, known as the Exosphere, used for advertising and signage — that, combined with sponsorship and suite license revenue, brought in an additional $11 million last quarter... along with a flurry of light pollution worries.
But even with that boost, the giant entertainment ball is far from profitable, with operating costs for the Sphere division of the company coming in nearly 50% higher than its revenue last quarter.
