Sphere Entertainment Co. reached an agreement with the Department of Culture and Tourism of Abu Dhabi to create a second Sphere in the capital of the United Arab Emirates (UAE).
“The vision for Sphere has always included a global network of venues, and today's announcement is an important milestone towards that goal,” he said. James L. Dolanexecutive chairman/CEO of Sphere Entertainment who oversaw construction of the Las Vegas Sphere in late 2023. Sphere Entertainment is a spinoff of Madison Square Garden Entertainment and is headquartered in LA, where a small staff develops the audio and visual elements for the Sphere's massive indoor video screen.
The Sphere's long-term success has always hinged on Dolan's ability to scale the business model and create additional Sphere facilities to recoup the cost of producing content for the uniquely shaped arena. According to sources, the video produced to accompany Noche's 10-fight UFC fight in Las Vegas cost more than $20 million last month.
A second Sphere location would provide Dolan and crew with the opportunity to recoup some of their production costs from a new audience through projects such as Postcard from Eartha multi-sensory film directed by Darren Aronofsky that helped generate more than $1 million in average daily ticket sales in the days it ran during the company's most recent fiscal quarter, according to a shareholder report.
There's also an opportunity to save on production costs by doing gigs at both the Vegas and Abu Dhabi venues, although it's unclear how much demand there would be in the Middle East for Western gigs. Since the end of the pandemic, only a handful of concerts by American artists performing in the UAE have been reported on the Billboard Boxscore.
“We are thrilled to bring Sphere to Abu Dhabi in partnership with Sphere Entertainment, providing our residents and visitors with an amazing new form of entertainment,” he said. Mohammed Khalifa Al Mubarakchairman of DCT Abu Dhabi, in a statement. “Sphere Abu Dhabi will seamlessly integrate advanced technology with captivating storytelling, creating unforgettable memories for all who visit. This partnership aligns with the Tourism Strategy 2030, further establishing Abu Dhabi as a vibrant hub for culture and innovation. By embracing cutting-edge entertainment like Sphere, we are not only raising our global profile but also setting new standards in immersive experiences and cultural offerings.”
Under the terms of the partnership, which is subject to the finalization of definitive agreements, DCT Abu Dhabi will pay Sphere Entertainment an initial franchise fee for the right to construct the venue, using Sphere Entertainment's proprietary designs, technology and intellectual property . Construction will be financed by DCT Abu Dhabi, with Sphere Entertainment's team of experts providing services related to the development, construction and pre-opening of the venue.
Following the opening of the venue, Sphere Entertainment plans to maintain ongoing agreements with DCT Abu Dhabi that are expected to include annual fees for creative and artistic content licensed by Sphere Entertainment, such as Sphere Experiences. use of Sphere's brand, patents, proprietary technology and intellectual property; and operational services related to venue operations and technology, as well as commercial and strategic advisory support.
from our partners at https://www.billboard.com/pro/second-sphere-venue-coming-abu-dhabi/
