Date: December 17, 2024, 12:42h.
Last Updated on: December 17, 2024, 12:57h.
The Sphere’s revenue of $420.5 million from 1.3 million tickets sold not only places it as the top-earning large concert venue on this year’s Billboard annual Boxscore list but also as the all-time top-earning concert venue.
The Sphere is not only the first venue to surpass $400 million in a year but also the first to exceed $300 million.
In the overview by Billboard, the music trade publication indicated that the Sphere attracts A-list acts similar to those at The Colosseum at Caesars Palace and Dolby Live at Park MGM. However, unlike those theaters with limited capacities, the Sphere is a full-sized arena selling 15K-17K tickets per show.
“Featuring a floor-to-ceiling wraparound LED screen, 4D physical effects, and immersive audio,” Billboard stated, “it’s a top-tier attraction for once-in-a-lifetime productions.”
Despite Success, Still Facing Financial Challenges
The $420.5 million gross revenue did not translate into profit. The Sphere reported an operating loss of $341.2 million for the fiscal year ending June 30, 2024, despite generating $1.03 billion in revenue during the same period. For the quarter ending September 30, it recorded a loss of $125.1 million on revenue of $127.1 million
The major reason for this financial situation is the significant payments made to headline acts. U2, which inaugurated the spherical venue in September 2023, reportedly received 90% of the gate revenue plus $10 million for their visual production.
The Irish rock band earned this amount for being the Sphere’s experimental act and due to the band’s insistence on having their original drummer. Despite only staging 40 shows, U2’s residency at the Sphere became the fourth highest-grossing in Billboard Boxscore history, generating $244.5 million. It was undoubtedly the most expensive residency ever staged.
It is likely a challenging task for Sphere owner James Dolan to negotiate lower payments with subsequent acts like Phish, Dead & Company, and currently, the Eagles.