Las Vegas Sphere Achieved Highest Annual Earnings in Concert Venue History Within a Single Year
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The Sphere, a state-of-the-art concert venue in Las Vegas, has made headlines for its impressive earnings and unique features. Similar to The Colosseum at Caesars Palace and Dolby Live at Park MGM, The Sphere attracts A-list acts and offers once-in-a-career productions.
U2's residency at The Sphere was a significant milestone, earning $244.5 million and securing the fourth spot on the Billboard Boxscore history's list of highest-grossing residencies. The Sphere also made history by becoming the first venue to gross more than $300 million, and later, the first to surpass $400 million in a single year.
However, The Sphere reported an operating loss of $341.2 million for the fiscal year ending June 30, 2024, despite earning a revenue of $1.03 billion during the same period. This discrepancy can be attributed to the high production costs associated with hosting such high-profile acts.
For instance, U2's residency was the most expensive ever staged, with the band reportedly earning 90% of the gate plus $10 million to shoot its visuals. U2 also had to replace founding drummer Larry Mullen Jr. due to shoulder surgery for their Sphere residency, which might have contributed to the high costs.
The Sphere's unique features, including a floor-to-ceiling wraparound LED screen, 4D physical effects, and immersive audio, no doubt add to the appeal and costs of hosting shows. Its capacity of 15K-17K tickets per show is also significantly larger than the four-digit capacity of The Colosseum and Dolby Live.
After U2, artists such as The Who and Backstreet Boys have performed at The Sphere, but specific information about their fees or honoraria at this venue is not publicly available. Phish, Dead & Company, and currently, the Eagles are among the acts signed by The Sphere's owner, James Dolan, after U2.
It might be challenging for Sphere owner James Dolan to pay significantly less to the acts he signed in U2's wake, given the high production costs and the venue's reputation for hosting high-ticket attractions. Billboard published an accompanying report noting these details about The Sphere.
For the quarter ending September 30, The Sphere recorded a loss of $125.1 million on revenue of $127.1 million. Despite this, The Sphere remains the No. 1 money-earning large concert venue on the 2024 Billboard annual Boxscore list, underscoring its continued popularity and potential for future success.
