Sphere Vegas suffering 'brutal' financial losses: can it survive?

Sphere at Venetian released its financial results for the fiscal quarter ending June 30, 2024, and it’s ugly.

During the three month period (April to June, 2024), Sphere lost $104.5 million. For the fiscal year ending June 30, 2024, Sphere lost a jarring $480 million.

For the fiscal 2024 fourth quarter, the Sphere reported revenues of $151.2 million, which sounds awesome without any context. The context comes a few paragraphs later in the Sphere’s news release: “Fiscal 2024 fourth quarter selling, general and administrative expenses of $102.1 million increased $11.8 million, or 13%, as compared to the prior year quarter, primarily due to higher employee compensation and related benefits and, to a lesser extent, higher professional fees.”

A giant red flag, “selling, general and administrative expenses of $102.1.” This reeks of poor management, and you don’t even have to read between the lines. It’s right out there in plain sight.

#sphere #vegas #music

[brodiebrazil]

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[jaynedcorp]

$100 a movie ticket,
$800-$1000 for u2 ticket,
$50 for self parking, $100 for valet parking,
$100 for buffet.
Are you crazy or I am too poor?

[BobbyGeneric]

Vegas is losing a ton of middle class tourists because the liquor and food used to be a great loss leader. Now they charge a mint for it.

[glennelliott]

When a ticket to watch a pretty generic film cost more than airfare to Vegas, it is a walk away.

[ebx]

So they blame employee costs for their big losses. It's becoming popular for billionaires to blame employee costs for bad C-Suite decisions.

[MM-femz]

Maybe charging $100 for a short movie isn't a draw for consumers

[travisfretwell]

$35 beers is robbery. Charge reasonable prices and people will buy more.

[emichin]

$120 parking during events, $17 alcohol drinks, $7 bottled water. People sooner or later will wise up. Gouging can only go so far.

[Hierarchangel]

Half a billion? If you're losing that amount of money, you don't get to be called "Sphere"; you're really just "Black Hole" (of money loss).

[Gitbizy]

Lifelong U2 fan but I can’t afford to fly there, buy uber expensive tickets, hotel and food. Concerts are becoming things only for the rich. The rest of us will have to watch YouTube videos for free and be satisfied.

[tomfuelery]

Vegas needs to remember what built it.
In the 90's, they had $39 rooms at the new casinos on the strip (Excalibur, MGM Grand, Luxor, etc) and 99 cent buffets.
People flooded to Vegas and the casinos and venues made buckets of money.

[jonjones]

If only it had opened in the 70's when there were bands worth watching and tickets were affordable. Imagine Pink Floyd

[joeballzee]

Who in their right mind would pay those ridiculous prices ?

[dustinrhodes]

Vegas is all about the shiny new toy, once the novelty wears off people start losing interest quickly.

[mikenelson]

As a former director of operations for MCA universal studios controlling and 18, 000 seat amphitheater, I concur with your observations. There's an old saying about a tractor: if it ain't rolling it ain't making money.

[jayclue]

$480M lost over 12 months equals approx. $1.5M per day. There is nothing they can do to generate an extra $1.5M every 24 hrs. How can the operating expenses equal a $480M annual loss? Seems like a stupid business venture to begin with. The numbers clearly don't add up.

[charlesritter]

Vegas is a COMPLETE RIP OFF from Top to Bottom. Literally EVERYTHING is RIDICULOUSLY expensive.

[grimmes]

The cheapest tickets to see the eagles in December is 900 bucks. One of the main singers passed away years ago. It just isn’t worth the price. Maybe in a few years they’ll realize they need people in the building to make money

[PauMaz]

With the proliferation of legalized gambling across the country visiting Vegas is not a big deal anymore. Vegas is obviously moving away from gambling to an entertainment destination. As the dealer says “good luck sir.”

[clydem]

What is amazing is that somewhere along the line the taxpayer will get stuck with the tab after those that got rich run and hide.