The Sphere: Las Vegas $2.3 Billion

By Josh Bobrowsky

What is The Sphere

The Sphere is one of the most visually appealing structures in the world. A giant high resolution dome in Las Vegas that can host sporting events, UFC fights and small concerts. Also one of the largest advertising structures on the planet.

Cost: $2.3 billion asdfa
Seats: 17,600
Speakers: 168,000
LED Lights: 1.2 million
Creator: James Dolan
Opening Date: September 2023

As a point of reference One Vanderbilt, a 77 story state-of-the-art skyscraper in Manhattan, cost $3.3 billion. So it is reasonable to say that the cost of The Sphere is somewhat in line with other modern marvels in recent construction.

Who is James Dolan

James Dolan is who is largely responsible for creating The Sphere. James Dolan is the CEO of Madison Square Garden Sports and Madison Square Garden Entertainment and the son of Charles Dolan ($4.3 billion net worth). Charles Dolan was the founder of Cablevision and HBO. The Dolan family control Madison Square Garden Sports, MSG Networks other notable MSG sports & entertainment physical properties.

Potential revenue models

Before going further it is worth noting that the interior of The Sphere is also fairly spectacular with a 250 foot high screen and 360 degree views.

Ticket costs

• Postcard from earth: $49-199

• U2:UV Achtung Baby Live at Sphere: $500

Revenue breakdown

Estimated: $3.75 million top line ticket revenue per show

Assuming an average ticket sale somewhere between the two events of $250 and assuming 15,000 tickets sold at this price per show.

It is worth noting that the $250 per ticket is simply a guess to top line revenue, it could be somewhat far off but I think it works for basic math.

100 shows or events per year at $3.75 million per show equals roughly $375 million dollars a year in top line ticket sales. Combine this with $25 million in annual advertising sales and you are looking at a top line revenue of $400 million per year.

It is worth noting that ticket sales must be split with performers and that these are pure estimates. Additionally there are other revenue sources such as food, clothing, VIP packages, naming rights, internal advertising and more.

Conclusion

I always appreciate a physical construction project that sets a new standard or does something that feels unique or amazing. There is so much focus on the advances in the digital world that new construction innovation deserves to also see the spotlight. The Sphere certainly hits this marks as being an incredible feet of technology and physical construction.

Cheers

Josh Bobrowsky