14 Years Of Ads: This Is How Long It Will Take Las Vegas' $2.3B Sphere To Recoup Mega Investment

U2 inaugurated the Las Vegas Sphere with a performance, marking the venue’s debut.

The architectural masterpiece boasts a massive dome adorned with over a million LEDs, making it a one-of-a-kind technological marvel. Social media is abuzz with videos from the concert, showcasing the spectacular and, perhaps for some, overwhelming visual extravaganza offered by the Sphere.

The mesmerizing yet intense experience underscores the significant investment required to bring such a concert to life.

What Happened: A user with the name @BetterPitchGuy took to Twitter on Tuesday to discuss the economics behind the MSG Sphere, an entertainment venue in Las Vegas. The tweet shared the Sphere’s pitch deck detailing the construction cost and per-day advertising fee.

The MSG Sphere cost $2.3B to build

They charge $450k for one day of advertising

Here's their pitch deck: pic.twitter.com/bXHqPIxSfv

— PitchDeckGuy (@BetterPitchGuy) October 2, 2023

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The Sphere, part of the Sphere Entertainment Co SPHR and Madison Square Garden Entertainment Corp (MSG) empire, recently debuted with a U2 concert that took social media by storm.

Why It Matters: Given the sphere’s advertising costs, it would need to run ads for approximately 5,111 consecutive days, or roughly 14 years, to recover its construction cost solely through advertising revenue. This calculation takes into consideration the venue’s one-day advertising fee of $450,000.

Advertising on the Sphere is no joke

• One day: $450,000
• One week: $650,000

It would need to run ads for 5,111 consecutive days, or roughly 14 years, to make back its $2.3 billion price tag on advertising alonepic.twitter.com/khAFqqjGyY

— Morning Brew ☕️ (@MorningBrew) October 2, 2023

Note that advertising isn’t the only revenue stream for the Sphere, but our calculations are based on a hypothetical scenario.

The venue, located at the Venetian Resort, has been celebrated for its futuristic design and unique concert-viewing experience. It is a noteworthy addition to the Sphere Entertainment portfolio, which also includes MSG Networks.

Sphere Entertainment Co’s stock saw an increase of 12.04% at $41.64 on Monday, while Madison Square Garden Sports dipped slightly by 0.60% at $175.23.

Photo by Steve Spatafore on Shutterstock

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