2023-11-11 10:24:33
The new Sphere venue in Las Vegas posted a loss of $98.4 million.
The multibillion-dollar venue, operated by the company that owns Madison Square Garden, opened Sept. 29 with a U2 concert. The company reported revenue of $118 million, down 71% from the previous year, according to the New York Post.
Venue revenue includes $4.1 million from U2 concerts and $2.6 million from licensing and . Wall Street analysts predicted a quarterly loss of $1.27 per share.
Additionally, The Sphere’s chief financial officer, Gautam Ranji, has reportedly resigned, according to a statement from the Securities and Exchange Commission. According to this document, his resignation “is not the result of a disagreement with the Company’s independent auditors or with any member of management on any matter of accounting principles or practices, financial statement disclosures or internal controls.”
However, the New York Post reports that he suddenly resigned after CEO James Dolan “screamed and screamed” against Ranji. “They did a great job of burying the news,” a source told the newspaper. “A financial director who resigns less than a week before the results is unheard of.”
Requested by the NME For comment, the Sphere referred to a press release regarding their financial situation.
In this release, Executive Chairman and CEO James L. Dolan said: “The opening of Sphere in Las Vegas in September was a milestone, attracting global attention and marking the start of a new chapter for our company. We are creating positive momentum in the together Sphere and we remain confident that we are well positioned to create long-term value for shareholders.”
Despite the venue’s financial loss, it has the opportunity to increase its revenue following the announcement of the extension of U2’s residency, which will see the group perform the entirety of their 1991 album, Attention babyuntil 2024.
It will also host the Las Vegas Grand Prix next week, which will take place over several days.
There were plans to open a similar center in Stratford, east London, but Michael Gove temporarily halted the project earlier this year, following opposition from residents and AEG, which operates the O2, located just four miles from where the stadium had been proposed to be built.
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