Jim Dolan floats ‘mini-Sphere’ rollout plan

Sphere Entertainment executive chairman and CEO James Dolan has revealed the company is developing a smaller version of its iconic Sphere venue to potentially roll out to other markets.

It was confirmed last autumn that the world’s second Sphere will be built in Abu Dhabi in partnership with the Department of Culture and Tourism – Abu Dhabi, and is expected to be similar in scale to the 20,000-cap Las Vegas original.

But speaking during the company’s fiscal Q2 2025 earnings call, Dolan teased that future expansion could also involve 5,000-cap mini-Spheres.

“As far as expansion goes beyond Abu Dhabi, we’re currently working on the architecture for a smaller Sphere, which we think will be deployable to more markets somewhere in the 5,000-seat range,” said Dolan. “We’re looking to take advantage of the content we’ve created already and the business we’ve created already and bringing it out to other markets. I anticipate by year-end, we’ll have more to say about that. But right now, we’re in the planning and design phase.”

Dolan said he did not expect the Abu Dhabi venue to be a “carbon copy” of the $2.3 billion Vegas Sphere, which opened in September 2023, in terms of programming.

“We believe we are on a path toward realising our vision for this next-generation medium and generating long-term shareholder value”

“I do not think that Abu Dhabi will be a carbon copy of Las Vegas when it comes to things like residencies, etc,” he said. “I definitely believe there will be residences in Abu Dhabi, but I think that the content has to be customised to the marketplace. And the marketplace in Abu Dhabi is probably going to be different than the marketplace in Las Vegas, so I think that there will be some differences. I think bottom line, it’s going to be just as robust of a product and Abu Dhabi as it is in Vegas, but probably with a different mix of content.”

Sphere Entertainment reported revenues of $308.3 million (€293m) for the three-month period ending 31 December 2024 – a dip of $5.9m (€5.6m) as compared to the prior year quarter. The firm reported an operating loss of $142.9m for a year-on-year improvement of $16.7m. Adjusted operating income was down $18.6m y-o-y to $32.9m.

For the last six months of 2024, the company reported $536.2m in revenue, an increase of $104m compared to the prior year period. It also posted an operating loss of $260.6m, an increase of $31.1m. AOI for the period was $22.7m, an increase of $29.1m compared to the prior-year period.

“As we enter a new fiscal year, we see significant opportunities to drive our Sphere business forward in Las Vegas and beyond,” said Dolan. “We believe we are on a path toward realising our vision for this next-generation medium and generating long-term shareholder value.”

The venue’s first electronic music act, Afterlife presents Anyma The End Of Genesys, completed a 12-show run between December and the beginning of March, while the Eagles are in the midst of a 32-show residency. Dead & Company, Kenny Chesney and the Backstreet Boys have all announced residencies at Sphere for later this year.

“The biggest opportunities are in the operating efficiencies and how well we exploit the marketplace”

With regards to revenue growth opportunities moving forward, Dolan offered both a short-term and long-term forecast.

“Short-term meaning this year, I think that the biggest opportunities are in the operating efficiencies and how well we exploit the marketplace,” he said. “Longer-term, it’s an interesting competition but if I had to pick one, I would probably say that the expansion of more Spheres is probably [the] one I think will deliver the most. Essentially, it’s a bit of a franchise model, right? And what we make to play in Las Vegas will play everywhere else and so therefore you get to spread the capital costs out across a greater base.

“As far as the overall business equation goes, I think that’s probably best opportunity. But there are plenty of other opportunities that are there and probably some we don’t know yet.”

Dolan also played down the prospect of the venue agreeing a naming rights partnership.

“I don’t really think, to be honest, that you’re going to ever see a name in front of the Sphere,” he said. “I don’t think that you’ll ever see a name in front of it, just like there’s no name in front of Madison Square Garden. The value of the brand equity is too high to sacrifice that to a naming opportunity.”

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