Rich McLoughlin

The new $2.3 billion Sphere in Las Vegas is insane. • 17,600 seats • 168,000 speakers • 1.2 million LED lights It could do $25M+ in annual advertising revenue alone, and they are already building a second one in London. Here's the breakdown 👇 James Dolan is mastermind behind this project. Dolan is the son of cable mogul Charles Dolan ($4.3 billion net worth) and has been in charge of MSG's sports & entertainment properties for 20+ years. He's underperformed with the Knicks (NBA) and Rangers (NHL), and he is currently facing a lawsuit for using facial recognition technology to kick fans out of arenas that talk s**t about him on social media. But Dolan is hoping the Sphere can change his reputation. The idea is simple: With most concerts taking place in sports venues (stadiums, arenas, ballparks, etc.), Dolan wanted to build a venue specifically designed for art and music. The project broke ground in 2018 and was expected to cost $1.2 billion. But COVID hit, and costs exploded. The construction cost was revised four times, and the project ended up costing nearly 2x more ($2.3 billion). But that might end up being a bargain — because there is NOTHING like the MSG Sphere. The inside has a 250-foot high screen with 360° views all the way around. There are 168,000 speakers, promising to deliver the same pristine sound to every seat, whether someone is in the top row or down on the floor. And the outside of the Sphere has 1.2 million LED lights (the size of hockey pucks) spaced eight inches apart that each contain 48 diodes (aka semiconductors) and can display 256 million different colors. But the craziest part might be their studio. MSG opened a 68,000-square-foot studio in Burbank, California. It has a 28,000-square-foot miniature sphere for testing, and this is where all the in-house creative, production, tech, software, and engineering teams will implement content on the Sphere’s exterior. The venue can host MMA and boxing matches, and U2 is kicking it off in September with a 25-show residency. But the Sphere should make millions on advertising too. MSG has already stuck a deal with the NBA to display Summer League content on its exterior every day during the 11-day competition (that's the video below). And with buildings like One Times Square in New York City making $25 million in annual advertising revenue, there is no reason why the MSG Sphere can't do something similar. And it’s not like MSG is going to stop at one building either. James Dolan and his partners already own a plot of land in the Stratford area of London for their next project. That’s because they want the Sphere to become a global brand. And with the company's stock ($SPHR) up more than 25% since the Las Vegas Sphere went live on July 4th, investors also seem excited about the idea. **This breakdown is an excerpt from my 3x weekly podcast (Top 50 in US Sports). Subscribe below so you don't miss any episodes going forward!** Apple: podcasts.apple.com/us/podcas… Spotify: open.spotify.com/show/5PLKKW…