F1 race plans ‘takeover’ of Sphere; robots to provide tours at show

James Dolan, executive chairman and CEO of Sphere Entertainment Co., in a rare appearance on a company earnings call with investors, gave new details Tuesday on what guests can expect when they arrive at the 17,500-seat entertainment venue being built just east of the Strip.

The Sphere will open with the first of 25 performances by U2 on Sept. 29 with Darren Aronofsky’s film debuting Oct. 6.

“On Oct. 6, we will debut the Sphere Experience,” Dolan explained to investors. “The Sphere Experience will come in two parts.

The first part consists of a series of exhibits that chronicle technology’s impact on human potential.

It will begin with a replica of Gutenberg’s printing press and take you through the creation of the metaverse and the development of AI.

Robots and holographs

“The visitor will be guided through this experience by animatronic robots that will utilize holographs, beam-forming sound and a 50-foot translucent video,” he said. “It will then continue in the main venue bowl where guests will be fully immersed in a multisensory cinematic journey from Academy Award-nominated director Darren Aronofsky. And with more than 40 million visitors annually and over 2 million local residents, Las Vegas is the ideal market to debut this unique content.”

During the call, Dolan also said new music residencies would be announced soon and that he expects Sphere would have some form of content 365 days a year. While U2 and “Postcard from Earth” are the only events scheduled so far, the Las Vegas Review-Journal has reported that the Eagles are under consideration for a Sphere residency after U2.

The Sphere’s “exosphere,” the building’s massive exterior digital screen, was first activated July 4 and has been drawing rave reviews from curious visitors who have seen it.

Company executives said $2.25 billion of the $2.3 billion has been spent to build the venue so far and Dolan affirmed that multiple Spheres are expected to be franchised and built around the world, some of them with capacities as small as 2,500 seats, but using the same technologies developed for the venue in Las Vegas.

Dolan told investors not to be too concerned about return on investment just yet because the company won’t be generating revenue until shows begin in September and October and another expense, the marketing of “Postcards,” won’t begin until the end of this month.

He said the U2 performances are nearly sold out and he didn’t say how many “Postcard” tickets had been sold, but added that it’s been his experience that sales of that kind of show don’t intensify until it opens.

Better return on capital

“Although it (Sphere) is capital-intensive, the opportunity for return on the capital is significantly better than it is with your traditional venue model,” Dolan said.

As for additional spheres being built elsewhere, the company already has plans for a building in London and there have been reports of talks occurring with representatives in South Korea.

“We designed the Sphere product for other marketplaces that go as low as 2,500 seats and have a construction period of less than two years,” he said. “We’ve done a lot of innovation in the construction area and we have architectural plans for multiple marketplaces. It’s a great time to be having this conversation because we’re just about to launch this project. The next call, we ought to be able to show some actual numbers. We’re sitting on a precipice here, but we believe in the product. The proof is in the pudding and the pudding is about to show up.”

Asked about maintaining a pace of shows every day of the year, Dolan said Sphere’s sister companies that operate Madison Square Garden and Radio City Music Hall have already done that on a regular basis. He said the company’s annual “Christmas Spectacular” operates 200 shows in eight weeks in the winter months.

Dolan said since the exosphere was activated July 4, an estimated 5 billion impressions have been seen in broadcasts and on social media and he expects that number to grow. He’s looking forward to the building’s high visibility during the inaugural Las Vegas Grand Prix Formula One race in November and opportunities that lie ahead in advertising and promotion.

Formula One

“Sphere will also host marquee sporting events as well as corporate events, with our first taking place in November with Formula One’s inaugural Las Vegas Grand Prix,” he said. “F1 will have a multiday takeover of Sphere’s exterior and interior, as well as feature Sphere prominently as part of the track. This will be a high-profile opportunity to showcase the venue to the millions of race fans watching around the world. Our event schedule through the remainder of the calendar year is now in place, and we look forward to sharing more on calendar ’24 in the coming months.”

Dolan said since the July 4 activation of the building, potential advertisers have taken notice. He said entertainers are intrigued with the technological advantages of the building and the appeal of establishing a residency that doesn’t require going on the road and hauling equipment from city to city.

“Following our demonstration of the exposphere’s capabilities, we’ve seen a significant increase in inbound interest for potential advertisers and marketing partners of our premium hospitality offerings,” he said. “Sphere in Las Vegas will have 23 VIP suites, as well as other unique hospitality spaces. We expect to license a number of these suites in multiyear agreements and are making progress towards this goal.”

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.