VIVA LAS VEGAS ........

 

I have been to Vegas many times ........well 3 to be exact .....i was  fortunate  to be  gifted these vacations  ..........very lucky ......its crass .....loud  and  ......ostentatious .....its Vegas ......since it s   inception it has been the   place  .....for the  degenerate .....famous  ........entertainment .......however  i think the  sphere is  to try and  compete with  Dubai....which is  impossible ......it seems Vegas is  going under a  rebirth .............and of course the Seminoles are   re-doing vegas ........and why not ......god bless it i love it ...........but the writing was on the  wall....... for the sphere  i mean the operating costs  ......alone .....but as  always .......... gamblers are  degenerates  they must   eventually re-coup the  costs......lots of  black jack ......poker........or maybe the chinese may buy it .........

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Las Vegas Sphere: Launch Costs Eclipse Revenues in High-Stakes Gamble

Selene Brophy

Wed, November 8, 2023 at 1:50 PM EST·3 min read

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A view of the Sphere venue in Las Vegas. Source: Sphere Entertainment. The Sphere

Las Vegas likes to gamble, and the opening of The Sphere arena in September was certainly a gamble for its operator. Fresh data shared on Wednesday highlighted the risks and potential rewards.

Five years in the making, the $2.3 billion marvel stands 366 feet tall and opened with Irish rock band U2 bringing the world’s largest 16K high-resolution LED screen to life.

The Sphere Entertainment Company said the arena’s opening brought in event-related revenues of $4.1 million, supplemented by $2.6 million from sponsorship and advertising.

Eyeing The Sphere’s Costs

The revenue was a fraction of its first quarter’s direct operating expenses, which totaled $7.8 million.

The breakdown of these expenses reveals $2.8 million in venue operating costs and $2.2 million in event-related expenditures, both directly tied to the Sphere’s operational debut.

Moreover, the direct operating costs encompassed $2.1 million related to advertising spending leading up to Darren Aronofsky’s October premiere of “Postcard from Earth,” the mainstay act at The Sphere Experience.

Analysts have raised questions about whether the revenue from events, sponsorships, and advertising can scale up to offset the substantial initial investments. Tickets for the specialized “Sphere Experience,” range from $90 to $250. U2’s performances at the venue have consistently sold out, and the band has since scheduled an additional 11 shows for January and February 2024.

Despite initial budget overruns and financial challenges at parent company Madison Square Garden Entertainment, the venue’s opening did give a 10% boost for investors.

Sphere Entertainment CEO James Dolan remained optimistic about the Sphere’s unique potential.

“We’re building positive momentum across Sphere and remain confident that we are well positioned to drive long-term value for shareholders,” Dolan said.

Next-Level Out-of-Home Advertising  

Kevin Bartanian, founder of Kevani, an Out of Home (OOH) media specialist company, said the Sphere was already on its way to becoming a global landmark with the publicity, or so-called earned media, it has received in a very short period.

“You can see how it already engages positively with audiences on an emotional level worldwide,” Bartanian said. “Consumers expect to have genuine connections with brands. Iconic media destinations like the Las Vegas Sphere help create that connection.”

While Bartanian declined to speculate on the cost of digital out-of-home campaigns for the venue, he expected the Sphere to be dominated by campaigns using creative content tied to localized events or concerts “to create energy and a synergistic moment.”

The Sphere literally markets itself to visitors by being such a prominent landmark just off The Strip with eye-catching video screens. Its 580,000-square-foot surface is covered by 1.2 million LED screens that have rotating external visual eye-candy and marketing messages.

Owners hope that Vegas’ upcoming attraction schedule will help expose visitors to the venue. The Las Vegas F1 Race on November 19, as part of the 2023 Formula One World Championship, is highly anticipated. As is the 2024 Super Bowl in February next year. Whether any of that will overflow on the LEDs screens of the Sphere, remains to be seen.

“The Sphere quite literally occupies people’s space,” Bartanian said. “You’re in the physical world. You have a chance to impact someone’s day. The way an architect thinks about activating a public space is the way you should think about how your ad’s relationship will be with the public.”

Perhaps lead singer Bono said it best in an interview shared on the band’s social media: “It’s not showbiz as usual. Sometimes it takes a grand madness to build a place that we’ve never experienced before.”

Cruise and Tours Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of cruise and tours sector stocks within the ST200. The index includes companies publicly traded across global markets including both cruise lines and tour operators.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more cruise and tours sector performance.

Read the full methodology behind the Skift Travel 200.

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The Las Vegas Sphere Is Already Losing Boatloads of Money, and Just Lost a Top Leader

Chris Malone Méndez

Thu, November 9, 2023 at 2:33 PM EST·1 min read

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Tayfun Coskun/Anadolu Agency/Getty Images

The Sphere has instantly become a recognizable part of Las Vegas' skyline, for better or worse, since it made its debut earlier this year. And while the massive technological and architectural undertaking is an impressive sight to behold, there's much more than meets the eye when it comes to keeping the Sphere running.

On Nov. 8, the Sphere reported an operating loss of $98.4 million in the fiscal quarter ending Sept. 30, right after U2 officially opened the venue with the first show of their residency. According to an SEC filing, the venue also lost its chief financial officer Gautam Ranji, though his 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." The New York Post, however, reported that Ranji suddenly quit after a screaming match with CEO James Dolan.

The Sphere cost a whopping $2.3 billion to build, while it brought in a fraction of that amount—approximately $6.7 million—from its opening through event revenue and sponsorship and advertising. Still, that wasn't enough to break even, as operating costs totaled about $7.8 million.

Related: Latest Animation on the Las Vegas Sphere is Freaking People Out

Clearly, the Sphere might be in the red for a while, especially considering how much it cost just to open the place combined with the money required just to keep the lights on. Dolan, meanwhile, believes in the vision. "We are building positive momentum across Sphere and remain confident that we are well positioned to drive long-term value for shareholders," he said in a statement.

For now, the Sphere will have to sustain itself with the U2 residency and the upcoming Las Vegas Grand Prix takeover.