Sphere Entertainment Co. has reached an agreement with the Abu Dhabi Department of Culture and Tourism to create a second Sphere in the United Arab Emirates (UAE) capital city.
“The vision for Sphere has always included a global network of venues, and today’s announcement is a significant milestone toward that goal,” said James L. Dolan, executive chairman/CEO of Sphere Entertainment who oversaw the construction of the Las Vegas Sphere in late 2023. Sphere Entertainment is a spinoff of Madison Square Garden Entertainment and is headquartered in L.A., where a small staff develops the audio and visual components for Sphere’s massive internal video screen.
The long-term success of Sphere has always been contingent on Dolan’s ability to scale the business model and build additional Sphere facilities to amortize the costs of producing content for the uniquely shaped arena. According to sources, video produced to accompany the 10-bout Noche UFC match in Las Vegas cost last month cost upwards of $20 million.
A second Sphere location would provide Dolan and crew a chance to recoup some of their production costs from a new audience via projects like Postcard from Earth, a multi-sensory film directed by Darren Aronofsky that helped generate more than $1 million in average daily ticket sales on the days it ran during the company’s most recent fiscal quarter, according to a shareholders report.
There’s also an opportunity to save on production costs by staging concerts at both the Vegas and Abu Dhabi venues, although it’s unclear how much demand there would be in the Middle East for Western concerts. Since the end of the pandemic, only a handful of concerts from American artists performing in the UAE have been reported to Billboard Boxscore.
“We are excited to bring Sphere to Abu Dhabi in partnership with Sphere Entertainment, providing our residents and visitors with an extraordinary new form of entertainment,” said H.E. Mohamed Khalifa Al Mubarak, chairman of DCT Abu Dhabi, in a statement. “Sphere Abu Dhabi will seamlessly integrate advanced technology with captivating storytelling, creating unforgettable memories for everyone who visits. This partnership aligns with our Tourism Strategy 2030, further establishing Abu Dhabi as a vibrant hub for culture and innovation. By embracing cutting-edge entertainment like Sphere, we’re not only elevating 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 a franchise initiation fee for the right to build the venue, utilizing Sphere Entertainment’s proprietary designs, technology and intellectual property. Construction will be funded by DCT Abu Dhabi, with Sphere Entertainment’s team of experts providing services related to development, construction and pre-opening of the venue.
Following the venue’s opening, Sphere Entertainment plans to maintain ongoing arrangements 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.
