The MSG Sphere, a multi-billion dollar venue in Las Vegas, has suffered losses of $98.4 million, according to reports. Despite opening its doors officially on September 29 with U2’s residency, the venue’s revenue is down 71% on the predicted $117.3 million. The venue generated $4.1 million from the two sold-out U2 concerts and an additional $2.6 million from advertising on its exosphere and suite licensing.
Wall Street analysts predict that the Sphere is expected to post a loss of $1.27 a share for the quarter. Furthermore, the Sphere’s chief financial officer, Gautam Ranji, has reportedly quit abruptly due to a disagreement with CEO James Dolan, who was “yelling and screaming” at Ranji.
The luxurious Sphere, tailored towards live performances and the arts, cost $2.3 billion to build and its design is optimized for acoustics with the entire building acting as a speaker. Its opening was welcomed by local residents and visitors alike in Las Vegas for its state-of-the-art design, tailored towards the arts rather than the sports entertainment market.
Despite the $98.4 million loss, the venue plans to continue with its hosting of the multi-day takeover of the Las Vegas Grand Prix next week. Mixmag has contacted the venue for comment on the situation, which has been described as uncommon for new COOs
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