Sphere Vegas suffering "brutal" financial losses: can it survive?
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- เผยแพร่เมื่อ 11 ก.ย. 2024
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Sphere at Venetian released its financial results for the fiscal quarter ending June 30, 2024, and it’s ugly.
During the three month period (April to June, 2024), Sphere lost $104.5 million. For the fiscal year ending June 30, 2024, Sphere lost a jarring $480 million.
Read More: www.casino.org...
For the fiscal 2024 fourth quarter, the Sphere reported revenues of $151.2 million, which sounds awesome without any context. The context comes a few paragraphs later in the Sphere’s news release: “Fiscal 2024 fourth quarter selling, general and administrative expenses of $102.1 million increased $11.8 million, or 13%, as compared to the prior year quarter, primarily due to higher employee compensation and related benefits and, to a lesser extent, higher professional fees.”
A giant red flag, “selling, general and administrative expenses of $102.1.” This reeks of poor management, and you don’t even have to read between the lines. It’s right out there in plain sight.
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#sphere #vegas #music
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I said it can be duplicated on JBR Dubai
I was waiting for you to mention that $ 220 M of the loss was depreciation. You did say construction was a cost but left it at that so I don't know if you are intentionally are being dishonest or if you just don't know what you are talking about, or maybe you are just parroting the original author
Why..why is it named something so stupid. How are you supposed to know about it. At least Bass Pro has the Minphis Pyramid. This is dumb as dumb as Islam building the black cube of Satan.
@Grimmes12 no they only like cubes...black cubes. Hail
The Sphere will go to the City or State and ask for a bailout; or a "grant" to keep it afloat.
$100 a movie ticket,
$800-$1000 for u2 ticket,
$50 for self parking, $100 for valet parking,
$100 for buffet.
Are you crazy or I am too poor?
Agreed
Oboma is making America poor agsin
Both
So they blame employee costs for their big losses. It's becoming popular for billionaires to blame employee costs for bad C-Suite decisions.
Excellent point. They have nowhere near the amount of shows needed to even break even with this thing and they’re blaming the employees already. This whole endeavor seems like it was doomed to failure. It’s insane the amount of cash they’re burning on a daily basis.
Ya it's never the investors demanding high profits. It's the janitors fault because he won't show up for minimum wage.
Yeah the people in the trenches totally are it's downfall ..if those people would work for free they may be able to increase their revenue lol
@@fueymanchoo1291omg😂😂 best line ever!!
It's becoming popular for billionaires to just blame employees for everything in general.
Vegas is losing a ton of middle class tourists because the liquor and food used to be a great loss leader. Now they charge a mint for it.
44% Captial Gains - That ought to do it
That's why there are cities better than Las Vegas. Chicago not one of them although it's the birthplace of mine.
I've been to Vegas in the 80s and 90s.
It's become nothing more than a resort now.
Very few slot machines on the floors anymore.
It's for people who are afraid to go to Mexico for a vacation.
😂
Ticket prices, fees and taxes, then drink prices and parking.
resort fees parking fees $100+ to do anything for an hour but its busy
When a ticket to watch a pretty generic film cost more than airfare to Vegas, it is a walk away.
Yeah but it's "immersive" n sheeeiiiit. That's the new code word. Took over from 'decadent".
Maybe charging $100 for a short movie isn't a draw for consumers
That's a hard pass for me.
100 for a movie? I’ll stay far away 😂. Thanks for the warning
I did enjoy the movie…. But yes. It is targeted mostly for the tourists willing to spend a bit more loosely.
Exactly!!!!
You have a 100 upvotes. Keep it there, guys.
Lifelong U2 fan but I can’t afford to fly there, buy uber expensive tickets, hotel and food. Concerts are becoming things only for the rich. The rest of us will have to watch TH-cam videos for free and be satisfied.
Yea… not worth even going to anything ‘live’… I’ve been given tickets and wasn’t impressed by anything I’ve seen lately.
Yep
Huge issue is the public transit is bad and the taxi union would die before they let that improve.
I once went to a ticket outlet in 84 and bought front row seats for $20 to see U2. Parked for free. Bought a T-shirt and spent a total of $60. Those were the good old days.
@@Gitbizy I’m way past going to ‘big shows’. Around that same time I was in Northern California at a little bar called Talk of the Town. It had people like Huey Lewis and Greg Almond playing in a place that held maybe 50 people at the most. I got to sit next to Greg and sing along as he played the piano. And have a drink with people like Huey Lewis and Jimmy Buffet. That was something I enjoyed.
Big shows are not for me.
Half a billion? If you're losing that amount of money, you don't get to be called "Sphere"; you're really just "Black Hole" (of money loss).
The world's tallest skyscraper in Dubai changed names half way through construction when it ran out of money.
Hahahahaha....GOOD ONE...."Black Hole"!
Ur silly
Your joke sucks
😂
$35 beers is robbery. Charge reasonable prices and people will buy more.
Atlanta Falcons proved this already, yet, it isn’t eye opening for most venues.
$35 for one beer? Where is that, please?
@@user-lb3kc2bi8z at the Sphere
Right, McDonald's and Walmart are two very successful companies.
Went to a game at Allegiant Stadium last weekend. A woman I was sitting next to paid $37 for a cup of wine.
If only it had opened in the 70's when there were bands worth watching and tickets were affordable. Imagine Pink Floyd
Those psychedelic sounds of the 70's would be awesome as interpreted by the videographers in the dome. There are still awesome bands that could do special stuff in there, but it would still be too expensive. People pay hundreds of dollars to see Swift, so I guess people have more money than me.
Today's music=shit...
@@marybetheby5184 😄🤣
Everyone looks at the past with rose-colored glasses. Pink Floyd's lavish satge sets (and custom auditorium that never broke ground), lost so much money it was a major factor in Waters leaving the band. The Grateful Dead's huge wall of speakers was so expensive it killed their tour... and almost killed the band.
THe main reason Waters left was his ego, and not getting along with Gilmore. He wanted all the credit for everything. He wanted to do his own thing. But comments are correct they would be in readable to see in the Sphere, or the Who or other bands like that in their prime. There are not any major acts around.
Vegas needs to remember what built it.
In the 90's, they had $39 rooms at the new casinos on the strip (Excalibur, MGM Grand, Luxor, etc) and 99 cent buffets.
People flooded to Vegas and the casinos and venues made buckets of money.
NO, SOMEWHERE ELSE CAN SERVE THAT TRASHY MARKET. VEGAS IS HIGH CLASS NOW, AND WILL BE FOREVER. HAVE FUN IN TRASH TOWN!
They cried to rais minimum wage they got it
$120 parking during events, $17 alcohol drinks, $7 bottled water. People sooner or later will wise up. Gouging can only go so far.
Who in their right mind would pay those ridiculous prices ?
Apparently, 720,000 people did to see 40 U2 shows.
A LOT of fools with money to piss away out there…..
Nah. /
People that want to brag on "the gram" that they saw the show at sphere.
Sheep are funny, they do funny things. If you get it just right, the sheep all flock to you and throw money at you. Kardashians are an example.
Vegas is all about the shiny new toy, once the novelty wears off people start losing interest quickly.
I remember when Circus Circus was the shiny new toy. Look at it now.
Vegas is a COMPLETE RIP OFF from Top to Bottom. Literally EVERYTHING is RIDICULOUSLY expensive.
Even up to the late 90s one could have a cheap Vegas weekend. That’s all gone. Resort fees even at motels now.
It's a place for the rich now. There's nothing necessarily wrong with that but if you are not in good economic streets than yeah... don't go.
@@BillLaBriein 2009 it was still cheap.
You can still get a a quarter pound hot dog, a drink with refills and sometimes even free samples of other Foods for $1.50 at Costco there.
@@Uvoted4this Costco saves the day! “I went to Vegas and all I got was this 5-pack of Clorox wipes.”
The cheapest tickets to see the eagles in December is 900 bucks. One of the main singers passed away years ago. It just isn’t worth the price. Maybe in a few years they’ll realize they need people in the building to make money
900.00?! Wow. No thanks.
In 1982, I paid $17 for Row 11 for The Rolling Stones.
The Eagles without Glenn Frey is not The Eagles.
Nine hundred dollars? Their catalog is all songs about adventures of the young and horny, but those guys are as old as I am. Seems very Vegas, not sure that adds up to a business model anymore.
@@billl1127 that must have been a great night
COVID recovery and inflation, overall lack of consumer confidence...the only people destined to profit from this project were the developers. Did Vegas need this? No, they wanted it and that's the difference. This generation already can't afford to put a roof over their own heads, but someone had the bright idea to use them to crowdsource helping the already-rich investor and real estate development classes keep their roofs, yachts, and vacation homes intact. I can't speak for everyone, but there's no reason for me to deal with Vegas and the super-inflated cost of everything there. Good luck to them...
Thank your local elected “representative” they don’t represent you though, only their self interests
This! I am not a Vegas resident. I bounce between Chicago and Salt Lake. The Bears really want a new stadium.....the project is estimated at FIVE BILLION......geeezus man we cant afford that no matter how much we love the Bears. Cut that in HALF. We literally cant handle the burden, pleeeeease no.
😂😂😂😂😂😂😂😂
Real shit
Had not one darn thing to do with. People are not going to the globalist movie they show to tell everyone how they have to reduce their carbon footprint. It’s nothing but more propaganda and people are starting to see that and the fact they have not booked any decent shows other than the stupid movie. Spend 1.4 billion and tell people to reduce their carbon footprint turns people off
With the proliferation of legalized gambling across the country visiting Vegas is not a big deal anymore. Vegas is obviously moving away from gambling to an entertainment destination. As the dealer says “good luck sir.”
Gambling may be down but tourism is up. Vegas as a whole is still creating wealth.
Vegas has moved away from gambling. It’s mostly resort packages, trade shows, major sports events, tech, etc…
Non-gaming revenue started exceeding gaming revenue on the Strip in...2004
Vegas is slowly dying.
I miss 1980s Vegas with the old bar maids still wearing bee hive hairdos from the past 😂
$480M lost over 12 months equals approx. $1.5M per day. There is nothing they can do to generate an extra $1.5M every 24 hrs. How can the operating expenses equal a $480M annual loss? Seems like a stupid business venture to begin with. The numbers clearly don't add up.
Losing $480 million is 1.3 million per day every day. When they roll over the $800 debt, the interest rate will rise by another $100,000 per day (or 200,000). $1.5 million per day? They need to cut costs or at least stop the rise. To generate an additional $1,500,000 per day, they need 15,000 more daily visitors at $100 each. And $100 might be pricing themselves out of the typical Vegas goer’s market. Maybe they need casino money.
It sounds like the financials would stick out so bad in any simple business plan. I’m wondering how it even passed that stage.
@@pudicus2SHHhhhhhh...Phat Toni needs to launder A LOT of money!
They will go to the State or City for a bailout; or a grant.
@@Chicago48 or for a government guarantee of a loan
What is amazing is that somewhere along the line the taxpayer will get stuck with the tab after those that got rich run and hide.
This is the story of Las Vegas. One entity (MGM) builds an arena that is a huge success. Everyone else copies it (Vegas will have three arenas soon, four if you count the A's stadium). The market gets oversaturated because there is a carrying capacity in the market. How it usually goes is the oldest of the "new era" gets torn down and they build something else there. See the Riveria, now the Mirage, before that the Imperial Palace and on and on. What remains to be seen is whether this approach is really sustainable in an era of normal, not artificially low, interest rates.
Why basically everyone says the As moving to Vegas will be a massive dud.
And each time they build something new, the prices are astronomical.
Vegas is an exaggerated reflection of America’s economy.
Churning? Laundering money?
Billions on an A's stadium will be the biggest waste of taxpayer money by far. Everyone will blame the fans for not stepping up to support a crappy team and pay ridiculous prices.
I'm old enough to remember when my parents would take me to Vegas as a kid in the 80s and when I would later go as an adult with friends in the late 90s. Current Vegas is such a rip off it's not even worth considering as a vacation destination.
Unless you are ready to risk 10k for a quick double up where that double up becomes your fun money don't go.
As a former director of operations for MCA universal studios controlling and 18,000 seat amphitheater, I concur with your observations. There's an old saying about a tractor: if it ain't rolling it ain't making money.
Look up the monthly electric bill of this venue, It's just under $500k/mo!! This is with the limited number of events no less..
Thinking the owners should have baked in their own power source in the project. Yikes.
And playing a movie telling you to reduce your carbon footprint. Dolan and MSG are the biggest f hypocrites in the world. Nope not going anytime soon.
What a waste of resources. Sickening.
and the movie the play, is about climate changing, shaming normal people
Damn. Should be illegal.
You know who made a ton of money. The people who built Sphere.
I´d imagine U2 also.
Total price of medium level rooms Fri/Sat is well over $300 per night when you calculate garbage fees like "resort fees" and parking. Minimum craps tables and blackjack at almost all strip casinos is $50. Getting into a restaurant is not easy plus food is VERY expensive in most places, prices for drinks at any club is ridiculous.
Up until a decade or so ago I went often would play $5 craps, stay for $100/night free parking no resort fees. The good old days are gone
During these tough financial times, most people are not able to pay for these exorbitant prices. They don't have awareness of what people can afford.
They haven't bought groceries or paid rent in decades. They have no concept of current budgets.
These are not tough financial times things are great economically in the USA 🇺🇸 the issue is corporations are trying to charge consumers too much for services to generate huge profits for shareholders 👎
@KCBluesJams I respectfully disagree. According to the Motley Fool, $65,937 is the median household income. Inflation keeps eating away at that number. Just today, there is a report stating that stores such as Dollar General are seeing a steep decline in customers. Many consumers are tapped out. Credit card balances are the highest in history as people are forced to charge more to make up for cash shortfalls. This is a recipe for financial disaster for those families. My wife and I are fortunate to have a household income that has insulated us from the financial problems most people face.
I didn't watch the entire video because I paused it to check executive compensation and company wide salaries. The CEO is apparently making over 16 million/year. His base salary is 230k with bonuses up to 200% of that. The rest presumably comes from stocks and options. The company could tank so what? Think he cares? He's riding high and living the good life, and nothing he does, right or wrong will change that. Yet another example of the Peter Principle, ubiquitous in media organizations. None of them are worth even a fraction of what they're paid.
How much do you think the stock is worth for a company with no profits, and probably no path to profitability? Is it even public?
Administrative costs 😂 that means the CEO gets $100m and that's where the loss comes from alone
When will CEOs treat employees like humans and not depreciating assets.
I used to go to Vegas because it was so cheap.
What did you do over there
I remember reading an article few years before this sphere was built, arguing that it won’t work out !!
Electricity cost alone for this project is HUGE let alone other factors !
It is hard to believe that the Sphere owners were not planning for the future and making a profit. Looks like a complete financial disaster so far.
They do the same thing with transportation projects and any government project like a convention center. They vastly overestimate the revenue and underestimate the costs. Then they expect the taxpayer to bail them out. Happening here in Orlando right now with the Sunrail train...they don't even have hours that allow people to use the train to come to Orlando Magic or any other games or concerts.
Was in Vegas in December, would have taken family on a tour of Sphere, but tix were $200 each…for a tour…that seems like easy day time money
Yikes
its around $100 to see a show called postcard from earth and they run a few of those a day ; im told its like 1.5 hour imax thing; they refused to close that down to allow beyonce to practice for 2 weeks bc they didn't want to lose that revenue im told that's why negotiations with her broke down; also they've been in news recently for playing outside music so loud it rattles the windows in a nearby apt complex and they're trying to get a year long waiver from the county criminals err commission to do that
Go to the guided tour of Hoover's damn instead.
@@phillvYou mean the globalist piece of sh*& movie that tells you we have wrecked everything and need to reduce our carbon, while they spend billions on a Sphere. That movie.
@@BCNeilTake a night helo ride if you don’t mind heights. The views of the strip are amazing high up at night.
Who can afford to go?? I'm having a hard time buying groceries and paying my utilities, let alone waste anything I have left on the sphere!!
I paid $140 a ticket with fees to see Phish there. How is it possible the average daily movie ticket is more expensive than that?
Sphere is placed perfectly next to an 8 story concrete parking garage. Brilliant site design. Give it a parking garage design award👍
Nothing worse than a venue that charges exorbitant ticket fees, high concessions and they still can’t make money. Only the artists are making money. Even the Sphere experience is $100 for a 50 minute movie.
Crazy I bought Tool tickets back in 2003, 4th row right in the middle like 30 ft away from the stage for $28. Now tickets like that would cost $1,000+. Things that used to be affordable are becoming events for those willing to go into debt for or the uber rich. If these venues can't make money charging 100x more than they used to then I don’t know what to tell them.
The number of 30 year old influencers passing away is very alarming.
Darwinism at work there.
Vegas as a whole is just too expensive
Parking fees are stupid in Vegas. Greedy corporations.
Sphere is awesome! It is too expensive in a town that is too expensive, so you have to pick and choose where to spend every dollar. You can see it without going inside and that's enough for most people. IF it was less expensive they could fill it daily.
Agreed can’t afford $100 ticket for a movie
Wife and I went to Sphere and wouldn't go back. #1 Parking. Horrible and expensive. #2 We see about 150 degrees in the vertical. I couldn't see all that was going on without constantly moving my head. It got Turing and distracting and I eventually gave up. #3 The design makes exiting difficult. You can't go out to the left and right because there is no left. It took forever to exit. Given all the costs, we were glad we saw the inside, but once was enough.
Sphere has always been a terrible place, even before when it was "Bob Stupek's Vegas World it was awful.
Other terrible places are: Rio, Circus Circus, Excaliber, almost all casinos/hotels downtown
The nicer places are also the most expensive - Wynn, Aria, MGM, but you will pay handsomely to stay or play there
Had the cheap seats , the 900$ ones are bad ass !
@@nicklasmillner101 They better be for $900.
Until the draft I thought it was literally a giant billboard.
Lol he said literally
Vegas is not a city its the world's biggest theme park!
In terms of Gambling, that is technically Macau, not Vegas.
It's not the world's biggest lol. Macau and Dubai are much bigger.
A theme park full of 1 arm bandits
Wtf do you know? Do you live here?
Typical United States people thinking they got the biggest of anything 🙄
Gambling is everywhere now. No reason to go there. Its a terrible place. Nothing to look at,nothing else to do. Terrible place that needind gambling to survive.
This building is a monument to rich people's exploitation of the working class. Anyone with sense can see that.
Las Vegas is in a time of pivoting and they are taking and accepting any and all ideas. If you went to Vegas in the 1990s you would see tons of Asian tourists, however in the early 2000s China allowed corporations to run gaming operations in Macau which took away most of Vegas' Asian tourism. Thus gaming revenue dropped and Vegas had to pivot from a gaming city to an entertainment city. Today, with the reliance on fuel declining Middle Eastern countries are diversifying their investments. Many of the world class entertainment Vegas would get (boxing, MMA, and music) are moving to Saudi Arabia and Dubai. The UAE is in the process of legalizing gambling. Once Vegas style casinos are in Dubai it will kill European tourism to Vegas. This is why Vegas is building all these new venues and brining in new sports teams, because the whole State of Nevada's economy is reliant on the success of The Strip.
And it's slowly drying up
Here's something I learned. Many times, when you build a commercial property, it takes YEARS for it to stabilize meaning ramp up to its potential sales volume. The other thing, Sphere will survive; it will be there in 10 or 20 years. It might have bankrupted several owners by then, but nobody tears down a new $2.4B development.
Wrong. If the losses continue, high school math shows it becomes cheaper to tear it down and start with something else in short order.
@weirdshibainu LOL. It will always generate revenue, it's recovering the development costs that's the burden. Once that's discharged, it will be sold to an investor at a price that will generate profit.
But bless your heart that with zero real estate development and ownership experience, you leverage your high school education as expertise.
@@rcampbell4967 High school education? Nope. MBA with several years of project management and like any projet, real estate or not, when the ROI decays, let alone turns negative, it's a loser. But bless your heart for trying to sound like an "expert" I'm guessing seeing how you have so much fatih in the project, that you've gone long, very long on the stock....because after all it generates "revenue". Oh let me guess you bought at the June low because you can read the future.
@weirdshibainu Well, it's apparently generating $150MM per quarter, Mr. I HaveanMBA. It's tracking to a Billion in revenue in the next several years. How the F stupid are you?
@weirdshibainu The Sphere is tracking to generate a billion dollars a year by 2026 or so. Did you learn the difference between gross and net revenue while supposedly getting your MBA? Dude, you're one ignorant MF'r.
With the prices they charge, how the hell would anyone expect otherwise! No one can expect it to be viable! It may be great, but in order for it to work, it would need to be packed shows multiple times a day!
It doesn't take a genius to figure out that when entertainment prices are sky high, fewer people will go.
💯👍
Vegas has simply priced the people out. I used to visit 8+ times a year. This year I've only gone once and that was for the Superbowl. It's just no longer worth it for me.
💯
My spouse and I have plenty of disposable income, but we are done with Vegas. We can gamble anywhere now and Vegas is way too expensive for what you get. Now we just hop a plane to Florida and are on the beach before noon. Fantastic restaurants as well, with more reasonable prices.
You didn't even mention the broken pixels. The difficulty in maintaining quality control amongst the elements was definitely underestimated.
Can you elaborate on this? I haven’t heard of that one before. Are there a lot of dead spots in the display??
yes, I'm curious about this technical aspect also. I presumed they would have anticipated failure, by designing catwalk or hatch access to easily replace the lumieres.
What could go wrong leaving electronics turned on out in blazing desert sun?
Las Vegas Sphere is awesome! After seeing U2 and Dead & Company there it is now my preferred venue to attend a concert. There is nothing like the Sphere anywhere on the planet. Sphere is planning to show their concerts as movies during the week, which should help generate more profits and offer a cheaper alternative for music fans.
Not a problem. If they go bankrupt, the sphere still exists. Investors will lose everything, but the sphere will go on, with a much smaller mortgage and lower costs.
I was going to post this. I just hope the taxpayers are not the 'investors' you are talking about. How much did Vegas/Nevada 'invest' in this thing?
the last DEAD and COMPANY show was mind blowing.....mind blowing
Woohoo!
I went....I'm not going back to the Sphere ever again, tho.....
@@TheBierman19 um, cool
It’s ridiculous, U2 was 500 for a show tkt I refuse to pay that much. I’d rather stuff my freezer with ribeye steaks for that amount of money!
Do you think that is ridiculous? Adele is at Caesars... $1000 will get you seats in the nosebleed area. Who is paying this?
Spending $2B on a TV screen is not something I sympathize with for a city with LV's problems. It's a sadistic level of conspicuous consumption, and if it ends up being a catastrophic failure, that would only highlight the point. They were willing to spend that much, on that little, and didn't even particularly care whether it worked.
It's not a TV screen and the city didn't build it.
@@carlgemlich1657 LOL, right.
I think they needed to have their production side create more before they even started building Sphere. Saw somewhere saying it took 6 months to produce the U2 production.
Agreed.
They also patented the camera technology to film for the SPHERE so you have to use their proprietary Cameras & Lenses to produce anything that could even be projected at the SPHERE making it impossible for a filmmaker without a ton of financial backing to even experiment with the technology.
Unlike IMAX who encouraged documentarians, scientists & less commercially motivated creatives to experiment with that type of film in the 20th Century. There was a roadmap to success set out by IMAX but Dolan's Ego thinks he knows his own way.
The price is too much for a normal visitor to purchase. They either need higher capacity or lower prices
Bingo
i looked up a simple movie there and it was like $175 per person.... sorry id pay that for a concert not a movie
The seating capacity is limited inside, not sure how to get around that.
I think Las Vegas has got way to expensive since I have been there last time which was 20 years ago. I won't go back.
Thanks for shining a light on Vital Vegas, he has so many years invested into his career.
Don’t waste your time ! It’s terrible!
Going to see the Eagles on 9-28, and after the brokers! Taxes, and surcharges. It was 1200.00 for each ticket, for me and my wife. The final ticket price was $1600. Each. I’ll love the show, but Vegas is destroying the middle class to quit going or 1 time a year for us. Oh well they don’t need us.
The Eagles are played out.....everytime I hear Hotel California, I want to puke.....You couldn't pay me to see them.
Even when they started construction on the Sphere the cost to build it was one of the things that made it hard to be profitable. Add in the costs to run it and it is no wonder it is loosing so much. Unfortunately it most likely will need to go through a bankruptcy action to have a lower base cost to become profitable. As you noted it has already become a Las Vegas fixture. So I am sure someone will com forward to keep it going.
Trying to blame employee compensation and benefits 😂
Right.
I think people are tired of the high prices for "entertainment" Burning Man is having difficulty selling tickets this year.
I'm aware of it, I "understand" it, I know where it is, but even if I visit Las Vegas, I have literally _zero_ interest in even _visiting_ it.
Same here. Especially with the overpriced show.
I think we are overestimating the number of bands capable of a residency at top ticket prices needed to profit...............
Being a music guy, I say, very good point. There are few modern acts that create the demand and pull it off. Taylor Swift, Morgan Wallen… Maybe? It’s gotta be the legends but most have over toured in recent history. Possibly Pearl Jam, a Police reunion, Foo Fighters? I imagine short term individual bands wouldn’t be profitable because of the production costs for each. Sphere is sphukd.
@@MrHayes-cb7hpProblem is the size. It’s too small for a Swift type show and too big for a typical residence. Celine was around 12K and the Sphere is 19k. No real good acts anymore that are big enough to fill it every night. Celine in her prime could have done it, Elton John could do it still maybe but really there are very few acts worth even watching anymore. I would love a one night only type show with Elton and maybe a couple others, James Taylor, Fleetwood Mac, those type of people can fill it.
@@scotttild Fleetwood Mac crossed my mind but they fired Lindsay and Christine passed. I think my best guess was a Police reunion. It would take something of that magnitude. Problem is, like you said, there just aren’t many left. I think they’re kinda screwed. Love the concept but Spheres have failed in LV before. The Stratosphere never realized its original hype.
A building that costs a cool billion to build. Millions a year in operational costs.
Sphere can only be built in a desert city. That leaves out New York, LA, London & even Tokyo.
Orlando?
Anything that loses 1/2 a billion its first year is DOOMED.
The subtle comments relating to the A’s situation were not lost on me watching the video. Very clever haha
It must consume power to even become "Sphere". Power costs money so it loses money just by existing. Any other stadium or venue can just exist passively, at least during the day.
The A's new Vegas monstrosity will be like the Sphere with a baseball field plopped in there. My vertigo couldnt handle either one.
The new ballpark in Vegas really does have the historic Sydney opera house vibe to it.
Rumors are floating that Dave Matthews Band will have a weekend (or more) at the Sphere next March. Phish did the perfect amount of shows to fill in a weekend. Dead and Co got greedy and booked way too many shows causing extremely cheap secondary ticket prices albeit my friends that went were in awe. The challenge with booking artists for The Sphere is it takes an incredibly long time for the graphics to be rendered and ready for a musical act. Bands like Dead & Co and Phish play a lot of different songs and that was a challenge to have so many graphics that needed to be rendered for the diversity of songs played.
yeah it feels like the production required should necessitate a band staying for a few months. more residencies less stopovers.
I am a Vegas avoider but from what I heard even U2 with their residency only had select songs that took advantage of anything the sphere had to offer in terms of A/V experience. The rest was just recreating the giant video boards you'd see at any normal arena concert.
Also all the Camera, Graphics & Editing systems to shoot/produce for the SPHERE are patented & owned by MSG, which in turn makes the entire production for the venue an expensive monopoly to buy into.
Yeah I caught Dead & Company there over July 4th weekend and surprisingly didn't spend an arm and a leg to get into all three shows. Some weekends were harder than others. The following week ticket prices were through the roof.
@@alk61695 From what I heard behind the scenes the Dead and Co run was always supposed to go through August but they wanted to intentionally slowly release the shows in 3 waves to drive up demand. Hence the
1. First batch of shows
2. More shows added due to “demand”
3. Uber low secondary pricing the first few weeks
3. 2nd wave of weekends
The #3 above was already signed in agreement otherwise the low secondary prices the firdt few weekends would’ve been cancelled.
That said I wish I could have went to vegas as the visuals looked amazing. I initially ruled it out of summer budgeting just because of the high cost from the east coast to fly and book rooms.
Brody, great breakdown of the challenges Sphere Las Vegas is facing. It’s surprising to see such an innovative venue struggling financially despite the buzz. Your suggestion to secure more residencies makes a lot of sense-consistent big-name acts could help stabilize revenue. Also, expanding the show library for off-peak times is a smart way to keep the venue generating income daily. The high cost of advertising on the Exosphere is another big issue; lowering those prices slightly might attract more clients, potentially increasing overall revenue. Sphere has so much potential, and with the right adjustments, I hope it finds its footing. Thanks for the insights!
Sphere is amazing, but in this economy it’s hard for us to spend that kind of money. I hope Sphere stays, cause it is sick.
I agree with almost all of your comments, I almost fell off my chair when I found out
how much the ball cost, I am 65 and live close to Vegas, and would like to
see a show before I die.
I hate the Sphere. I was working close to while it was under construction and right after it opened. It has caused a lot of traffic and been a pain in the butt for locals. Tourists block traffic to take pictures of it. I don't personally know anyone who lives here in Nevada who has been to an event there due to the high costs.
Yikes. Didn’t realize it was like that
@@brodiebrazilit’s not
Definitely dangerous to drive past it, as no one is paying attention to the road.
I love it seeing it but generally avoid the congested traffic parts of Vegas metro area. It's visible from a long ways away.
You missed the Dead and Company residency. They were there all summer. One of the most amazing audiovisual shows I’ve ever seen! Postcard from earth is a daily show that basically just showcases Sphere’s capabilities.
I went to see the movie at the sphere. Was around 75 per ticket. Very impressive facility. Enjoyed it very much. Could lose 75 in 5 minutes in the slots so this was a good use of my money. Myself and my nephew commented independently about the incredible number of staff in the venue. Ridiculously expensive concessions open all over with nobody buying. 18 dollar beer. Crazy
these monster venues always overdo the sound volume to painful levels, its like paying money to be physically assaulted, all the sound technicians must be deaf
And they wanted to build one in East London, where people have even less money to spend…
$200 a ticket to see a movie kept me away. Make it reasonable.
It was pretty cool. But just that one time. No need to go back.
How was that supposed to even make money.
How do concert venues make money?
As a place for large concerts it would be very wonderful in my view, Tyler Swift type thing, but the old Vegas residence is about dead, why would anyone even go there? gamble??
It has gotten very easy to travel over the whole world, the orginal Vegas business was during a time when travel overseas was prohibited.
The regular city life in Vegas is gutted like a bery large ghetto, even Summerlin has whole plazas empty, i sat in a large "bakery" like a cafe with no one on it but me! Water problems
Vegas is heading towards a financial disaster. They gouge the customer at every angle and turn. No more, I won't go there anymore. It's too expensive for what it is. I would rather spend my money and go travel somewhere. It's now so expensive for a couple of days, that it makes no sense. With the economy heading into the toilet, it's gonna be 2008 all over again in Vegas.
You right.
I used to go vegas a lot and stay on the strip. Eventually I started staying at off strip casino resorts to save a few bucks and avoid the crowds. Now I stay at a friends house and won’t go near the casinos. It’s unfortunate my wages have not gone up 4000% to keep up vegas price increases the last 20 years. Sad the city is pricing its self to only cater to the super rich.
I am not surprised at all this crazy thing is struggling financially. It cost a gozillian dollars to build and who knows how much it costs to continuously operate. I saw it literally the day before it went live. It is an impressive structure.
Gambling is down, people are tired of losing.....the horror stories from gambling are turning crowds off.....people are smarter now, and know gambling is bad news.
I heard Dubai was looking to add one of these after the London one was declined.
London still has the Millennium Dome, which was also a commercial disaster, a building looking for a reason to exist.
Las Vegas needs to change their name to Las Delusion. The average consumer can no longer afford LV. Rooms and food were lowered back in the day so that tourists would spend their $$$$ on tables and one-armed bandits. Corporations today that own these hotels/casinos don't understand this. Instead of buffets it's food courts and high priced big name celebrity chef restaurants. All you can eat pancakes, late night blue plate specials, and $1.00 shrimp cocktails or hot dogs have been replaced with luxury this and sumptuous that. It doesn't work. That isn't what LV is about. It is also why I will not make Las Vegas my choice to visit any time in the near or distant future.
I’m sure it because they overpaid the acts, like U2 etc, to get the sphere on the map. These losses won’t continue after.
It's the law of Supply and Demand at work here. It's not like these concerts are playing to a half empty arena, if they can charge ~$1000 per seat and pack the place then why shouldn't they? Prices are so inflated in Vegas because there's still enough people willing to pay those prices. Tourism is up last quarter, revenue is up last quarter. You want prices to come down? Stop coming to Vegas for a couple years and you will literally see billion dollar companies lose their shit! Just stop coming and stop the insanity.
Typical business spin of blaming having to pay employees properly for why they're not profitable
.
It's the fact that every show, every ticket will need to cost way more than other shows. They will not keep this booked, thus it is likely DOA. It's 2 new for anybody to invest for producing a show there. They needed investments from Movie , Music, and Entertainment conglomerates from the jump. Why does showing drafts here make any sense?
The sphere is awesome but u wouldn’t catch me dead in Vegas. They should have built one in a city the whole world travels to: NYC. I would definitely go there to see it.
The Sun will Deteriorate those outdoor screens in 4-5 years
Did you ever see an ATM, or a reader board that is burned out from the sun?
Vegas is pricing itself out of business