Las Vegas’ MSG Sphere has reportedly lost $98.4 million
The venue's CFO has allegedly quit his post, just over a month since opening
Las Vegas’ multi-billion dollar venue, the MSG Sphere, has reported a loss of $98.4 million.
Officially opening on September 29 with U2’s residency, the luminous space was predicted revenues to be $117.3 million, however, it is down 71% as reported by The New York Post.
Revenue from the venue included $4.1 million from the two sold-out U2 shows and $2.6 million from suite licensing and advertising on its exosphere.
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The Sphere is expected to post a quarterly loss of $1.27 a share, claims a survey of Wall Street analysts.
On top of this, The Sphere’s chief financial officer, Gautam Ranji, has reportedly quit according to a Securities and Exchange Commission filing.
Ranji’s resignation 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,” the company filing claims.
However, The New York Post reported that he suddenly quit after CEO James Dolan was “yelling and screaming” at Ranji.
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“They did a wonderful job burying the news,” said a source to The New York Post. “A CFO quitting less than a week before earnings is unheard of.”
The Sphere’s structure cost $2.3 billion to build, with Las Vegas residents describing it as “like a sun on earth”.
The dome's design is tailored towards live performances and the arts, other than a standard arena built just for sports.
While giving a tour to Apple Music’s Zane Lowe, U2’s Bono said: “There are no speakers. The entire building is a speaker. So wherever you are, you have perfect sound is the plan,”.
Next week, the Sphere will host a multiday takeover of the Las Vegas Grand Prix.
Mixmag has reached out to MSG Sphere for a comment on the situation.
Becky Buckle is Mixmag's Multimedia Editor, follow her on Twitter