Building anything in Las Vegas is time-consuming, challenging, and expensive. Building something as tech-packed and as complicated as the Las Vegas Sphere increases all of that by a significant margin. I have a soft spot for Las Vegas, I attended CES for 7 years straight, until COVID-19 cancelled everything. Thankfully, I am finally going back for CES 2024 and when I get there, you can bet I will be checking out the Las Vegas Sphere.
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Assuming it will still be in operation, anyway. According to the Las Vegas Sun, the Las Vegas Sphere has already reported a $98.4 million loss for the fiscal quarter ending Sept. 30 and the Chief Financial Officer has quit.
Gautam Ranji, the CFO for Sphere Entertainment Co., has also resigned, according to a Securities and Exchange Commission filing. According to the Las Vegas Sun; “The New York Post reported Tuesday that Ranji suddenly quit after a bout of yelling and screaming from CEO James Dolan.”
The Las Vegas Sphere cost $2.3 billion to construct and complete, and the entire building is covered in LED lights which can project just about anything you can imagine. The company has been looking for advertisers to use the LED space, but the price is high, perhaps too high. According to Design Rush; “the Sphere offers advertising on its expansive 1.2 million LED lights screen at a staggering rate of $450,000 per day or $650,000 per week.”
The interior of the Las Vegas Sphere is equally impressive and packed with technology. The ceiling can also project light and image shows and is an astonishing setting for concerts and other entertainment. U2 held a concert, in which many concert-goers came away impressed with the Sphere’s performance.
The Las Vegas Sun said; “Revenue for the quarter included $4.1 million in event revenue — those two sold out U2 shows — and $2.6 million from suite licensing and advertising on the Sphere exosphere.”
“We are building positive momentum across Sphere and remain confident that we are well positioned to drive long-term value for shareholders,” Dolan said.
So I guess only time will tell if the Las Vegas Sphere will be able to recoup the over $2 billion it took to build it.
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