The state of the art $2.3 billion massive spherical venue, which was opened on 29 September, has already made a huge loss – and lost its CFO.
ADVERTISEMENTThe MSG Sphere reported losing $98.4 million (approx. €92,2 million) for the financial quarter ending on 30 Sept, a day after the venue first opened in Las Vegas Strip.
What started as a simple sketch became a reality seven years later. A $2.3 billion (€2.19 billion) massive spherical venue, standing 111 metres high and lighting up the Las Vegas skyline.
On 29 September, the much-anticipated moment arrived as the Sphere unveiled its grandeur to the world for the first time, setting the stage for U2's 25-show residency - with the band's use of the Sphere’s groundbreaking LED and audio system. It has since hosted events and screenings, including the new Darren Aronofsky film, Postcard from Earth.
The loss was announced around a week after Gautam Ranj resigned as Sphere Entertainment’s chief financial officer, according to a Securities and Exchange Commission filing. Ranj, who had been on the job for 11 months, will be replaced on an interim basis by Greg Brunner, the company’s senior vice president, according to the filing.
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.”
However, the New York Post reported that Ranj suddenly quit after a bout of yelling and screaming from CEO James Dolan.
During the latest quarter, 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.
Following the news of the operating loss, Dolan told shareholders that the company is building a positive momentum and is positioned to drive long-term value.
