Dolan Teases “Mini Spheres” Venue Concept in Earnings Call

Sphere Entertainment is pressing forward with plans to replicate its cutting-edge Sphere concept in multiple markets, including a second, large-scale venue in Abu Dhabi and a new “mini sphere” prototype that could be deployed in even more cities.

Executive Chairman and CEO Jim Dolan revealed the news on the company’s most recent earnings call, noting that engineers and architects are designing “a smaller sphere” with around 5,000 seats. By contrast, the Las Vegas Sphere, which opened last year, has a capacity of about 17,600. The smaller model, Dolan said, could unlock the concept for a wider range of communities.

“As far as expansion goes beyond Abu Dhabi, we’re currently working on the architecture for a smaller Sphere, which we think will be deployable to more markets somewhere in the 5,000-seat range,” Dolan said on the company’s earnings call. “But we’re looking to take advantage of the content we’ve created already and the business we’ve created already and bringing it out to other markets.”

Sphere Entertainment also confirmed the second Sphere will rise in Abu Dhabi, fully financed by a local partner. These expansion plans come after the company abandoned efforts to build in London, where local officials, including Mayor Sadiq Khan, raised concerns about the proposed structure’s potential impact on nearby residents.

The expansion push is taking shape amid ongoing financial challenges for Sphere Entertainment and its MSG Networks segment, which carries $804.1 million in debt principal. The company disclosed in its latest quarterly earnings report that MSG Networks’ lenders have agreed to pause on any debt-collection remedies until March 25, 2025, but if the segment can’t negotiate a refinancing deal, a bankruptcy filing could be likely.

Revenue for the three months ended December 31, 2024, was $308.3 million, a 1.9% decline from the prior year. Although the Sphere segment in Las Vegas brought in $169.0 million—a marginal 1% drop—performances of Postcard From Earth and V-U2: An Immersive Concert Film were slightly fewer, which contributed to reduced show averages. Meanwhile, MSG Networks revenue fell 5% to $139.3 million, with declining cable subscriptions eroding distribution revenues by 11.5%.

Sphere Entertainment posted an operating loss of $142.9 million for the quarter, an improvement from the $159.7 million loss in the same period last year. Dolan attributed part of the financial headwinds to changing media consumption habits, which have eroded traditional cable’s profitability. “We do have to find another way,” he said of MSG Networks’ financial woes, “but I don’t think that path is clear yet.”

Despite these hurdles, Dolan predicted that 2025 would be the company’s “best year yet,” citing cost-reduction measures and continued momentum at its flagship Las Vegas venue. He underscored the company’s excitement about rolling out smaller versions of the Sphere, which management hopes will replicate the original venue’s success on a broader scale.

With the second Sphere project already under way in Abu Dhabi, eyes are on how quickly Sphere Entertainment can finalize its smaller design and bring that concept to additional markets, even as it grapples with fiscal strains closer to home.