The world's second Sphere is set to make its debut in Abu Dhabi, following the successful launch of the first colossal dome entertainment complex in Las Vegas in September 2023, featuring a residency by rock band U2. The Abu Dhabi Department of Culture and Tourism and Sphere Entertainment Co. jointly announced the ambitious plan on Tuesday to bring a Sphere to the Middle East.
Under the agreement, Abu Dhabi will pay a franchise fee to Sphere Entertainment for the use of its designs to construct the second location. The Abu Dhabi government will bear the cost of building the structure, along with annual fees to Sphere Entertainment for 'creative and artistic content.' However, the announcement did not provide details on the financing or the exact location within the Emirati capital. Dates for the construction and opening of the venue remain undisclosed.
Sphere, a multi-billion dollar venture by James Dolan, the executive chair of Madison Square Garden and owner of the New York Knicks and Rangers, saw its $2.3 billion Las Vegas Sphere open in 2023 as the city's most expensive entertainment venue. The 17,500-seat venue boasts a high-resolution LED screen that wraps halfway around the audience, hosting concerts, film screenings, and sporting events within the world's largest spherical structure, standing 111 meters tall and 157 meters wide.
Efforts to build a second Sphere abroad have faced challenges. London Mayor Sadiq Khan rejected a proposal to construct one in the city's east last year due to concerns over light pollution. The London Assembly Environment Committee had warned of unacceptable light levels from the estimated 1 million LED light bulbs on the venue's exterior.
Abu Dhabi has been striving to set itself apart as a travel destination from neighboring Dubai in the UAE, a federation of seven sheikhdoms on the Arabian Peninsula. Sphere's stock closed over 6% higher on the New York Stock Exchange on Tuesday, reaching $48.91 a share, following Benchmark's downgrade of Sphere Entertainment to 'sell' last month due to concerns over scalability, high production costs, and potential profitability issues.
Last year, it was reported that the Sphere had incurred significant losses. The MSG Sphere reported a loss of $98.4 million (approximately €92.2 million) for the financial quarter ending on 30 September 2023, just a day after its opening on the Las Vegas Strip. This announcement came shortly after Gautam Ranj resigned as Sphere Entertainment's chief financial officer, as disclosed in a Securities and Exchange Commission filing.
