Las Vegas Sphere Set to Soar with New Band and Super Bowl LVIII Anticipation Las Vegas Sphere Set to Soar with New Band and Super Bowl LVIII Anticipation

Written By Michael Gary Scott

A Star-Studded Spotlight

In late 2023, the Las Vegas Sphere, under the ownership of Sphere Entertainment, caught the public eye during a Formula 1 race in downtown Las Vegas.

Thanks to unique ads and videos displayed on the outside of the building, along with the hefty advertising costs, the venue gained widespread attention. It was reported that advertising for one day on the outside of the Sphere cost an eye-watering $450,000, and a full week came with a hefty price tag of $650,000.

However, as Super Bowl LVIII approaches, the stakes are raised even higher. Advertising for the week of the big game is set to cost up to $2 million for a rotating spot on the iconic venue, with all ad slots already sold out.

The potential for increased exposure during Super Bowl LVIII week, coupled with soaring advertising rates, may become a financial boon for Sphere and its investors.

Adding to the excitement, rumors of a reunion of Dead & Company at the Sphere have come to fruition, with the band hinting at potential shows at the venue.

This electrifying development follows the completion of a farewell tour by Dead & Company, which includes three former Grateful Dead members—Bob Weir, Mickey Hart, and Bill Kreutzmann—along with other accomplished musicians such as John Mayer.

A video shared by the band, featuring their iconic “Steal Your Face” logo on the Sphere, teased, “It’s gonna be a ball.”

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Intriguing Financial Performance

Sphere Entertainment reported first quarter revenue of $118.0 million, down 4% year-over-year, with $7.8 million stemming from Sphere operations and $110.2 million from MSG Networks.

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For the Sphere segment, event revenue was reported at $4.1 million, with advertising and suite license revenue totaling $2.6 million.

It’s worth noting that the first quarter results had minimal exposure given the recent public opening of the Sphere. The upcoming second quarter numbers are expected to reflect the impact of sold-out U2 concerts and the launch of “Postcard from Earth” by renowned director Darren Aronofsky in October 2023.

As Super Bowl LVIII approaches, the company stands to gain significant revenue from advertisers and showcase the uniqueness of advertising on the venue, paving the way for future catalysts.

Pompliano revealed that over 1,000 private jets are expected for Super Bowl LVIII, with flights into the city offering spectacular views of the Las Vegas Strip and the Sphere. This presents a golden opportunity for the exposure of products and companies advertised on the Sphere to reach a broad, star-studded audience.

Sphere is set to release its second quarter financial results on Monday, Feb. 5, the week of the Super Bowl.

SPHR Price Action: Sphere Entertainment shares were up 0.6% to $35.38 on Wednesday, versus a 52-week trading range of $20.68 to $43.93.

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