The MSG Sphere has reported a loss of $98.4 million for the financial quarter ending on September 30, just a day after the venue first opened in Las Vegas Strip.
Though the loss was announced around a week after Gautam Ranj resigned as Sphere Entertainment’s chief financial officer, the company denies the two things were related.
Sphere Entertainment said Ranj’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”.
According to a Securities and Exchange Commission filing. Ranj held his role for 11 months. Senior vice-president Greg Brunner has been the company’s interim CFO since November 3.
The company earned $4.1 million in event revenue and $2.6 million from advertising and suite licensing from the Sphere’s massive exterior screen during the last quarter.
Just last month, U2 played at the $2 billion entertainment venue. The Irish band were projected onto what is now the largest LED screen in the world. The concert centred on their Achtung, Baby album, and was their first performance in a series that will run at the venue until the end of December.
What is the Sphere?
The Las Vegas Sphere – usually referred to as The Sphere at the Venetian Resort and previously MSG Sphere – is an entertainment venue in Nevada, United States, near the Las Vegas Strip.
The project was announced in 2018 by the Madison Square Garden Company and designed by Populous, a global architectural and design practice. It was initially estimated that the project would cost $1.2 billion (£992m) but the cost continued to increase. It eventually surpassed $2 billion (£1.7bn) due to the 2021-2023 global supply-chain crisis and inflation.
The final cost is estimated at $2.3 billion (£1.9bn).
The Sphere features an 8,600-seat auditorium, immersive video, and audio capabilities, a 16K resolution wraparound interior LED screen, speakers with beamforming, and wave-field synthesis technologies, as well as 4D physical effects.
How much does it cost to advertise on the Sphere?
The stadium is using its features to its advantage and is already offering advertising opportunities. The price for having one day’s advertising on its screen is $450,000 (£372,000), while a week of advertising could reach $650,000 (£537,000), News 3 agency reported.
Who else will be performing at the Sphere?
MSG plans on hosting four to six residencies each year at the Sphere. U2 were the first to play the venue and it is rumoured that we can also expect Harry Styles to perform in March, as well as progressive/psychedelic rock band Phish the same month.
In terms of events and attractions, the Sphere Experience is taking place at the venue from October 6 and is apparently hosted by a robot.
The official description reads: “The Sphere Experience begins the moment you walk through the doors where you’ll be greeted by Aura, our real-life humanoid robot: one of five identical robots you can interact with.”
There will then be a screening of a new film from Black Swan and Mother! director Darren Aronofsky, called Postcard from Earth.
It’s thought that it “will take you on a journey to all seven continents: deep into the ocean, high into the mountains, into the eye of a storm, and out into space. And everywhere you go, you’ll feel like you’re really there,” the description for the film reads.
