James Dolan
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Madison Square Garden is owned by a larger entertainment group that oversees the famed venue, along with other properties such as Radio City Music Hall. A patron was barred from entering a Madison Square Garden Entertainment property this week over designing a t-shirt that read “Ban Dolan” back in 2017.As spotted in The Gothamist, Frank William Miller Jr., a notable graphic designer with credits with major brands and record labels, was hoping to take his parents out for their 47th wedding anniversary at Radio City Music Hall. However, facial recognition software used by MSGE and implemented by owner James Dolan flagged Miller over an act that occurred back in 2017.
Miller designed a “Ban Dolan” shirt, which he says was created in response to Dolan banning New York Knicks legend Charles Oakley from Madison Square Garden.
“I just think it’s amusing that a lowly thousandaire like myself is living rent free in a billionaire’s head,” Miller told the outlet regarding his ouster while trying to attend a Cleo Sol concert with his parents. “The only part that really bothers me is that my mom was crying.”
Adding to this, Miller never wore the shirt, and instead, it was worn by a friend of his who attended a Knicks game and was booted from the venue in 2021. Miller was apparently unaware that Dolan and MSGE had banned him from all their venues despite the generally simple explanation for the shirt.
Miller took the incident in stride and urged his parents to enjoy the show without him, but didn’t allow MSGE’s code of conduct violation ban sour him from speaking his mind.
“These venues are bigger than his ownership — they were here before his family owned them,” Miller stated. “They belong to the people, maybe not legally, but the Knicks, Radio City… It’s just crazy.”
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For the second time in three years, Universal Music Group (UMG) chairman/CEO Lucian Grainge tops Billboard’s annual list of the highest compensated music executives.
In the first year of a five-year employment contract, the London-born, Los Angeles-based Grainge earned $150.3 million, nearly six times the $25.6 million paid to second-place finisher James Dolan, executive chairman/CEO of both Sphere Entertainment Co. and Madison Square Garden Entertainment. (The fiscal years of the latter two companies ended June 30, 2023.) Live Nation president/CEO Michael Rapino, last year’s No. 1, was third at $23.4 million.
Most other executives appeared on the prior two compensation rankings. Warner Music Group CEO Robert Kyncl and WMG’s outgoing CEO of recorded music, Max Lousada, were fifth and sixth, respectively (for the fiscal year ended Sept. 30, 2023). Spotify co-president/chief product and technology officer Gustav Söderström and co-president/chief business officer Alex Norström were seventh and 10th, respectively. IHeartMedia chairman/CEO Bob Pittman and president/COO/CFO Rich Bressler were eighth and ninth, respectively.
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The top 10 list has one new name in 2023: John Hopmans, executive vp in charge of mergers and acquisitions and strategic finance at Live Nation, at No. 4. The only vice president on the list, Hopmans had a relatively low salary of $982,000 but earned $23.4 million, mostly from restricted stock units and performance stock valued at $21.4 million.
The second-longest-serving CEO on the list behind Rapino, Grainge dramatically boosted his 2023 earnings with stock options, performance stock units and restricted stock units valued at $120 million. These grants included a $100 million “one-time transition award,” according to the company’s 2023 annual report, to move Grainge from all-cash compensation in his previous contract to “a combination of cash and equity” under the stock incentive plan UMG adopted in 2022.
Due to the size of the transition award, Grainge’s $7.5 million base salary accounted for just 5% of his 2023 compensation, a relatively small figure but not the lowest of the group. Söderström’s $300,000 base salary amounted to just 2% of his $14.7 million compensation. (The remainder was a stock option award.) Lousada’s $5 million base salary made up 29% of his total compensation and was the highest percentage on the list.
On average, the 10 executives received 10% of their compensation from base salaries, which is on the low side of averages in the corporate world. “By and large,” says Aalap Shah, managing director at Pearl Meyer, a compensation consultancy, “base salary constitutes about 10% to 20%” of average executive compensation.
Instead of receiving a large, guaranteed salary, top executives at public companies are increasingly paid based on their performances on metrics such as revenue growth, adjusted EBITDA growth and share price gains. “Shareholders typically prefer that at least half of a CEO’s equity awards be based upon performance criteria,” says Stephanie Hollinger, vp at ISS-Corporate, a Rockville, Md.-based provider of data and analytics to corporations. That percentage is expected to increase over time, Hollinger adds, as “pay is becoming more equity-based, and those equity awards are increasingly tied to performance-based conditions.”
In 2023, performance-based pay accounted for 53% of the average compensation for CEOs of companies in the Russel 3000, an index of the 3,000 largest public companies in the United States, according to ISS-Corporate. For CEOs of media and entertainment companies in the Russel 3000, performance-based pay was 42% of average compensation in 2023, “likely due to a higher relative proportion of other compensation elements, such as time-based equity compensation,” says Hollinger.
For most executives, performance-based pay comes in the form of company stock. Grainge’s five-year employment contract, which took effect April 1, 2023, reduced his base salary by 72% and added stock-based compensation that accounts for 57% of his target pay package. By putting Grainge’s earnings and shareholders’ interests in better alignment, UMG followed the practices of other public companies. “The view is that there should be more accountability and more performance orientation to executive compensation,” says Shah.
Receiving stock as compensation can pay off handsomely but also carries risk. The value of Grainge’s options, which vest in equal installments over four years, will depend on UMG’s share price at the conclusion of his employment contract on May 1, 2028. One-third of the options are exercisable if UMG’s share price exceeds 26.50 euros. Another third is exercisable at 30.00 euros. The final third requires a share price of 38.00 euros. The value of the grants took a short-term hit on July 25 when UMG’s share price dropped 24% to 21.70 euros following UMG’s second-quarter earnings report. But with nearly four years left on Grainge’s employment contract, there’s ample time for the share price to hit the thresholds.
With so much executive pay coming from stock, Billboard created a new separate list for top cash earners. Here, the value of noncash earnings such as stock options and unvested stock grants are excluded in favor of money that went into executives’ bank accounts in 2023.
Three executives who made the top cash earners list do not appear on the overall compensation ranking: At No. 5 is SiriusXM CEO Jennifer Witz, with $7 million; No. 6 is Live Nation president/CFO Joe Berchtold, with $6.4 million; and No. 7 is German concert promoter CTS Eventim CEO Klaus Peter-Schulenberg, with $5.7 million.
Billboard’s list of top-paid music executives is made from publicly available information culled from annual reports and proxy filings for calendar year 2023 or, in some cases, the most recent fiscal year. Public companies reveal compensation for a small number of named executive officers. So, in the case of multi-sector companies like UMG and UMG, the earnings of label heads are not made public. Because publicly traded conglomerates do not share details of subsidiaries’ executive compensation, the list does not include executives such companies as Sony Music Entertainment and BMG. Executives at privately held companies are excluded due to a lack of publicly available information.
James Dolan will continue his run as Sphere Entertainment Co.’s executive chairman/CEO for another three years. Sphere Entertainment gave Dolan a three-year contract extension that runs from July 1 to June 30, 2027, according to a July 3 regulatory filing. Sphere Entertainment consists of Sphere, the groundbreaking, $2.3-billion venue in Las Vegas; MSG Networks, which […]
James Dolan, executive chairman/CEO of MSG Entertainment, will lead the New York-based live events company for another three years. Dolan received a new contract that will keep him at MSG Entertainment through June 2027, the company revealed on Friday (June 21) in a regulatory filing. Dolan, who is also the CEO of both MSG Sports […]
A California judge presiding over a sex trafficking case that was brought against Madison Square Garden Entertainment (MSGE) CEO/executive chairman James Dolan, the Azoff Companies and Harvey Weinstein in January is weighing several motions to throw out the lawsuit, with a decision expected to be announced as soon as early next week.
Attorney Douglas Windor, a high-profile litigator who represented Casandra Ventura (a.k.a. singer Cassie) in her since-settled sex trafficking lawsuit against Sean “Diddy” Combs, filed an explosive lawsuit in January on behalf of Tennessee massage therapist Kellye Croft, who alleged that Dolan and an employee of Azoff Music Management conspired to traffic her to California to have sex with Dolan — who in turn allegedly trafficked her to Weinstein.
Representing Azoff Companies is powerful New York litigator Daniel Petrocelli, partner at O’Melveny & Myers LLP, who has represented Donald Trump and Travis Scott. Dolan is represented by Danya Perry, a former assistant U.S. attorney and ex-chief of litigation at MacAndrews & Forbes.
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Petrocelli and Perry have each filed separate motions to dismiss the case, which is being handled by Judge Percy Anderson, while Perry has issued a blanket denial of Croft’s claims against Dolan.
Croft alleges that she was hired to work with the late Glenn Frey in October 2013 while the vocalist and Eagles frontman was touring with the band and opening act JD and the Straight Shot, which is led by Dolan. Croft alleges that Dolan befriended her during the tour, gained her trust and then sexually assaulted her before coercing her into a sexual relationship while on the road.
Two months after returning home to Nashville in the wake of the tour, Croft alleges she was contacted by an executive at Azoff Music Management and hired to work as Frey’s masseuse for the Eagles’ six-night run of concerts at Kia Forum in Los Angeles. When Croft arrived in Los Angeles, she learned that he was staying at a different hotel than the band — leading her to suspect that she was really hired by Azoff Management as a favor to Dolan.
“Ms. Croft did not perform a single massage on any member of the Eagles while working at The Forum,” Wingdor writes, alleging that “in reality, Ms. Croft was flown out to Los Angeles for the purposes of engaging in unwanted sexual acts with Dolan.”
Croft also claims that she was set up by Dolan, allegedly with the help of two Azoff employees, for an encounter with Weinstein, the disgraced film producer and convicted rapist, during her stay at the Peninsula Hotel in Beverly Hills. Croft says she was confronted by Weinstein in an elevator and allegedly offered a job on the set of an upcoming film — only to later be sexually propositioned by the film producer, who then followed her to her room and sexually assaulted her, according to the complaint.
Dolan’s relationship with Weinstein dates back to 2003 when Dolan and Weinstein were part of an investment group — which also included financier and convicted sexual predator Jeffrey Epstein — that was hoping to purchase New York magazine. Dolan also briefly served on the board of The Weinstein Company starting in 2016.
Croft allegedly decided to file the lawsuit after Dolan sent her the lyrics to “I Should’ve Known,” a song he wrote lamenting his failure to stop Weinstein from victimizing women.
In April, Perry filed a motion to dismiss Croft’s lawsuit, arguing that even if the woman’s claims were true, she still can’t sue Dolan under the Trafficking Victims Protect Act because “the bill targets and criminalizes sex trafficking, not sexual relations (which is all that is alleged in (Croft’s complaint),” according to the motion. Wigdor responded in a separate filing that Perry’s reading of the law was “wrong.”
As to the Weinstein allegation, Perry is arguing that Dolan and other former Weinstein Company board members were already released from any claims “to alleged sexual misconduct by Weinstein” during 2018 bankruptcy proceedings. Wigdor countered that Croft “did not consent to waive her claims” and wasn’t aware of the bankruptcy.
Petrocelli’s motion to dismiss argues that Croft’s complaint “contains no facts suggesting the Azoff Entities participated in, benefitted from, or even knew about any sex trafficking scheme” when hiring her. Petrocelli also wants Croft and her attorney sanctioned for filing the lawsuit and is asking that Croft be required to pay Azoff’s legal costs.
The motions have been taken under advisement by the judge, who late last week canceled a Monday (June 3) hearing for oral arguments on the motions, noting the “Court finds this matter appropriate for decision without oral argument.“ His ruling is expected any day.
Attorneys for Madison Square Garden executive James Dolan are firing back at a lawsuit that alleges he pressured a masseuse into unwanted sex while his band was touring with the Eagles, calling his accuser an “opportunist” who is “looking for a quick payday.”
In a motion filed Monday in Manhattan federal court, Dolan’s lawyers asked a federal judge to dismiss the lawsuit, in which a woman named Kellye Croft claims that Dolan coerced her into “unlawful and unwelcome sex acts” on repeated occasions during the 2013 tour.
Arguing that the allegations were “completely manufactured,” Dolan’s attorneys told the judge that it is “an unfortunate truth that some men, by virtue of their status, have become targets for opportunists looking for a quick payday.”
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“If this case were to proceed … plaintiff would be exposed as such an opportunist, and her claims would be soundly rejected for the lies that they are,” Dolan’s attorney lead counsel E. Danya Perry wrote. “But this action should never reach that stage, as plaintiff’s complaint is entirely deficient.”
Dolan is the majority owner/CEO of Madison Square Garden Entertainment, a live music giant that operates the famed New York City arena in addition to Manhattan’s Radio City Music Hall, the Las Vegas Sphere and other prominent venues.
Croft sued him in January, claiming she had been hired to serve as a massage therapist for Glenn Frey during the 2013 tour, on which Dolan’s band (JD & The Straight Shot) opened for Eagles. She says she thought the job was the “opportunity of a lifetime,” but that she quickly realized the real reason she was there: “Dolan was extremely assertive, and pressured Ms. Croft into unwanted sexual intercourse.”
The lawsuit also claimed that Dolan later facilitated an incident in which Croft was assaulted by Harvey Weinstein, the disgraced film producer whose many sexual assault allegations helped spark the #MeToo movement in 2017. Dolan previously served as a director at The Weinstein Company, and the lawsuit claimed that the two moguls were “close friends and business partners.”
In Monday’s response, Dolan’s attorneys took particular exception to the Weinstein allegations, calling them “scandalous and irrelevant” claims that had been designed to compensate for flaws in the case: “This transparent reliance on headline-grabbing, yet legally baseless, accusations of liability-by-association cannot save plaintiff’s case.”
Dolan’s motion also argued that the inclusion of Weinstein was actually a “fatal” weakness in one part of the case. They claimed that bankruptcy proceedings for The Weinstein Company resulted in a court order releasing all former directors from allegations that they aided and abetted Weinstein’s conduct — one of the claims leveled against Dolan in the complaint.
In a response statement on Wednesday, Croft’s attorney Douglas Wigdor called Dolan’s argument “shameful” and said his client had not participated in or benefited from the Weinstein bankruptcy, or even been notified of it.
“To somehow suggest that Dolan should receive a ‘get out of jail free’ card for his alleged intentional acts of trafficking our client, shows the extent to which he is willing to go to avoid having to defend the facts of our case,” Wigdor wrote.
Separately on Monday, attorneys for companies owned by music executive Irving Azoff also filed their own response to the case. While the lawsuit mostly centered on Dolan’s alleged conduct, it also accused the Azoff Company of violating federal sex trafficking laws by “facilitating Dolan’s behavior.”
In their motion, Azoff’s attorneys demanded not only that the claims be dismissed, but that Croft and her lawyers be legally sanctioned for filing “frivolous and vexatious” allegations without any real evidence to support them.
“As was explained to plaintiff’s counsel before the suit was commenced, the Azoff entities have never participated in any sex trafficking venture, and the complaint does not allege a single fact plausibly or remotely suggesting otherwise,” wrote the Azoff Company’s attorney Daniel Petrocelli.
“The decision by plaintiff and her counsel to include [such claims] in a federal pleading with nodiligence or investigation in order to publicly and falsely charge the Azoff Entities with despicable, illegal conduct fully justifies the imposition of … sanctions.”
In one portion of Croft’s complaint, her lawyers included a photograph of Dolan, Azoff and Weinstein standing together in 2015, saying that “these men were close to one another, and thus almost certainly knew details about each other’s personal lives.”
But in Monday’s motion seeking to dismiss the case and punish Croft’s lawyers, Azoff’s attorneys called the inclusion of Weinstein in the complaint a “gratuitous and unavailing” tactic that had been designed to prove “guilt-by-association” in the absence of any real evidence.
“Grasping at straws, plaintiff tries to link Weinstein to the Azoff entities by a single photo of Dolan, Weinstein, and Irving Azoff at an advertising trade conference in 2015,” Petrocelli wrote. “Awarding the Azoff entities their reasonable attorneys’ fees and costs in bringing this motion would deter plaintiff’s counsel from asserting such baseless, bad faith claims in the future.”
In his statement Wednesday, Croft’s attorney Wigdor called those arguments “meritless” and reiterated the allegations against Azoff’s companies: “We look forward to defeating these motions and moving forward with this litigation.”
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Source: Andrew Toth / Getty
Could New York Knicks owner James Dolan be the next NBA franchise boss forced to sell the team by Commissioner Adam Silver?
We doubt it as Knicks fans have never seen their dreams come to fruition (championships, signing LeBron, etc.), but the loathed owner of New York’s favorite basketball team is facing some serious allegations. Both Dolan and Harvey Weinstein have been slapped with a lawsuit alleging they sexually assaulted a masseuse a decade ago. According to CNN, Kellye Croft filed a lawsuit in federal court Tuesday (Jan. 16), in which she claims that James Dolan forced her into unwanted sexual intercourse with him while she was giving him a massage in 2013.
Croft says she met Dolan while on tour with the Eagles. The then 23-year-old life’s changed when the Knicks owner got out of pocket and allegedly coerced her into doing something that left her scarred for life.
CNN reports:
While getting a massage, “Dolan pulled Ms. Croft towards him,” the lawsuit claims. “Ms. Croft tried to bring the massage to an end, but Dolan proceeded to come on even stronger, treating Ms. Croft’s resistance as part of a challenge or a game. Dolan then grabbed Ms. Croft’s hands, dragging her to a couch in the same room and forcing her hands between his knees as he sat down. Ms. Croft was adamant that she did not want to have any sexual interactions with Dolan, who was married at the time and over thirty years older than Ms. Croft.”
“She felt disgusted and terrified of the situation, but the extreme isolation she felt from others on the tour, coupled with Dolan’s attention to her, his assertions that he would take care of her, and her recognition that this man held immense power over everyone’s position on the tour—including hers—led her to submit to Dolan’s advances,” the lawsuit states.
But it didn’t end there. Croft also alleges that Dolan set up a meeting between herself and disgraced Hollywood heavyweight Harvey Weinstein in a hotel where the convicted rapist sexually assaulted her as well.
Both Dolan and Weinstein have denied the allegations with Dolan saying he considered Croft a “good person and is surprised she would agree to these claims.”
Croft is seeking both monetary and punitive damages, saying the encounters left her traumatized to the point that she couldn’t speak about the incidents for years.
More from CNN:
“I have suffered so profoundly because of what James Dolan and Harvey Weinstein did to me years ago, and it was not an easy decision to come forward and seek justice. But for me, to truly address my trauma, I need to seek accountability,” Croft said in a statement to CNN. ”My hope is that my lawsuit will force Dolan to acknowledge what he did to me and to take responsibility for the harm he has caused.”
Don’t be surprised if this gets settled out of court as Dolan wouldn’t want any of his dirty laundry being aired in public.
What do y’all think of the situation? Should Adam Silver force Dolan to sell the team should these allegations prove true? Let us know in the comments section below.
Madison Square Garden executive James Dolan is facing a sexual assault lawsuit that claims he pressured a masseuse into unwanted sex while his band was touring with the Eagles — and that he later facilitated an incident in which she was also assaulted by Harvey Weinstein.
In a lawsuit filed Tuesday (Jan. 15) in Manhattan federal court, Kellye Croft says that Dolan coerced her into “unlawful and unwelcome sex acts” on repeated occasions after she was hired to serve as a massage therapist for the Eagles’ Glenn Frey during the 2013 tour.
Croft says she thought the job on the concert tour — on which Dolan’s band JD & The Straight Shot opened for the Eagles — was “her big break” and the “opportunity of a lifetime.” But she says she quickly realized the real reason she was there.
“Dolan was extremely assertive, and pressured Ms. Croft into unwanted sexual intercourse with him,” writes Croft’s attorney, Douglas Wigdor. “Ms. Croft was disgusted by Dolan, but her youth and extreme loneliness while on the road with strangers, as well as Dolan’s immense power, made it possible for Dolan to manipulate Ms. Croft and lure her under his control.”
Dolan is the majority owner/CEO of Madison Square Garden Entertainment Corp., a live music giant that operates the famed New York City arena in addition to Manhattan’s Radio City Music Hall, the Las Vegas Sphere and other prominent venues.
Tuesday’s lawsuit also claims that Dolan later secretly orchestrated a 2014 encounter between Croft and his friend Weinstein, the disgraced film producer whose many sexual assault allegations helped spark the #MeToo movement in 2017. Weinstein is currently serving a decades-long prison sentence after being convicted on multiple felony charges.
Croft’s lawyers say Dolan arranged the early 2014 meetup, during which Weinstein allegedly invited her to his hotel room under the guise of discussing an opportunity for her to work as a massage therapist for actors on movie sets. After she refused his “escalating” behavior and returned to her room, her lawyers say Weinstein chased her down the hall, “barged into Ms. Croft’s hotel room” and proceeded to sexually assault her.
In a response sent to Billboard, Dolan’s attorney, E. Danya Perry, said there was “absolutely no merit to any of the allegations against Mr. Dolan” and that the references to Weinstein were “simply meant to inflame.” Perry alleges the claims were an “act of retaliation” by Wigdor, describing him as “an attorney who has brought multiple cases against Mr. Dolan and has not, and cannot, win a judgment against him.”
“Mr. Dolan always believed Ms. Croft to be a good person and is surprised she would agree to these claims,” Perry wrote. “Bottom line, this is not a he said/she said matter and there is compelling evidence to back up our position. We look forward to proving that in court.”
In his own statement, Wigdor said that “our firm has not lost multiple cases to Dolan — that is a fabrication.” He said that with the filing of the lawsuit, “it is time to finally hold Dolan accountable for his outrageous conduct.”
In addition to Dolan and Weinstein, the lawsuit also names several entities owned by The Azoff Company, the privately held company founded by legendary music industry executive Irving Azoff. Though Azoff himself is not individually named as a defendant, the lawsuit claims he was “extremely close friends” with Dolan as well as a frequent business partner — and that Azoff’s companies thus enabled Dolan’s alleged abuse.
“In addition to the extremely close personal relationship between Dolan and Irving Azoff, Dolan was a critically important business partner for the Azoff Entities,” Croft’s lawyers write. “The Azoff Entities thus benefited from facilitating Dolan’s behavior to the extent it kept their partner, a notoriously erratic billionaire, happy.”
In a statement to Billboard, a representative for Azoff strongly denied the lawsuit’s allegations: “Irving Azoff is not a party to this lawsuit. Neither he nor his companies had any involvement in any alleged misconduct by others.”
An attorney for Weinstein did not immediately return a request for comment.
Sphere Entertainment has said it’s committed to working with alternative “forward-thinking cities around the world” after officially withdrawing plans to build a Sphere concert arena in London.
On Monday (Jan. 8), Sphere Entertainment’s sister company, Madison Square Garden Entertainment (MSGE), which is owned by tycoon James Dolan, told British officials that it would not be proceeding with its long-standing proposal to build a Sphere venue in the British capital city.
The announcement came less than two months after London Mayor Sadiq Khan blocked plans for the 21,500-capacity, 300-foot-tall spherical building because of the impact he believed it would have on the surrounding area, including high energy use and the “significant light intrusion” it would cause local residents.
In a letter to the planning inspectorate seen by Billboard, Richard Constable, MSGE’s executive vp/global head of government affairs and social impact, told officials that “following careful review, we cannot continue to participate in a process that is merely a political football between rival parties.”
“It is extremely disappointing that Londoners will not benefit from the Sphere’s groundbreaking technology and the thousands of well-paying jobs it would have created,” wrote Constable, confirming that MSGE — acting on behalf of Sphere Entertainment — was officially withdrawing its application from the planning process.
The termination of MSGE’s plans for a London version of its $2 billion Sphere venue in Las Vegas follows years of controversy surrounding the project, which was due to be built on a five-acre plot of land in Stratford, East London (the site has been largely derelict since 2012 when it was used as a temporary coach park during the London Olympics).
A proposal for what was later christened MSG Sphere London was first submitted in 2019, but it immediately received strong opposition from local councillors and campaign groups, as well as AEG, the owner and operator of the 20,000-capacity The O2 arena located less than five miles away.
Despite residents’ concerns, The London Legacy Development Company provisionally greenlit the plans in March 2022 before they were subsequently overturned by Mayor Khan last November.
In a statement, Sphere Entertainment said it had informed Michael Gove — the U.K. secretary of state for levelling up, housing and communities, who initiated a review of the mayor’s decision in December — that it would not be moving forward with its plans for London and would not be participating in a review.
“We are committed to continuing to work collaboratively with forward-thinking cities around the world who are serious about bringing this next-generation entertainment experience to their communities,” said a spokesperson for Sphere Entertainment.
Sphere Entertainment Co., formerly Madison Square Garden Entertainment (MSGE), was formed in April when MSGE’s traditional live entertainment business, which includes the Madison Square Garden and Radio City Music Hall venues in New York, split off from the Sphere and MSG Networks businesses. Sphere retained a 33% stake in MSGE.
The five-acre site earmarked for the London Sphere, which MSGE bought for around £60 million ($76 million), is now expected to be put up for sale.
Meanwhile, the developer is understood to be in talks with multiple international markets about rolling out the Sphere model in other global cities, following its high-grossing debut in Las Vegas last year with a residency by U2.
In December, the New York Post reported that Dolan was meeting with investors in Abu Dhabi about building a second Sphere in the United Arab Emirates capital. Also last year, several South Korean newspapers reported that the city of Hanam was another potential future location after talks took place between city officials and representatives of MSGE. Sphere Entertainment Co. declined to comment on those reports when contacted by Billboard.
Sphere, the stunning venue that has transformed the Las Vegas skyline and redefined the concert-going experience, generated $4.1 million from U2’s first two concerts in September, its owner, Sphere Entertainment Co., reported in its quarterly earnings release on Wednesday (Nov. 8).
The $2.3 billion Sphere is a 366-foot tall, 516-foot wide spherical venue with a wrap-around video screen that envelopes a seated audience of 17,600. Sphere’s external skin — called Exosphere — is covered in 580,000 square feet of programmable LED exterior lights that advertises the venue’s technological capabilities.
Sphere also made $2.6 million in additional revenue, primarily from advertising on the Exosphere that began in September.
With only two concerts under its belt through the end of September, Sphere’s earnings release was about the venue’s potential, not its revenue to date. “Our journey with Sphere is just beginning,” said executive chairman/CEO James Dolan during Wednesday’s earnings call. “And while it will take some time for Sphere to realize its full potential, we’re off to a great start.”
U2’s original 25-show residency has been extended by an additional 11 shows that will occur in January and February 2024. The company expects to host two additional residencies in the second half of the fiscal year that ends June 30, 2024, according to Dolan. “We’re having conversations with artists across a wide variety of genres, including discussing runs of varying lengths,” he said.
Sphere had an adjusted operating loss of $83.1 million in the quarter, an increase of $19 million from the prior-year period. It also had $2.8 million of venue operating expenses in the quarter and $2.2 million of event-related expenses. An additional $2.1 million in advertising costs were related to the Oct. 6 launch of The Sphere Experience featuring the film Postcard from Earth by Darren Aronofsky. Selling, general and administrative expenses amounted to $84.2 million.
The Las Vegas venue is the first of what Sphere Entertainment expects to be multiple Sphere venues. Dolan was light on specifics but said there is “a great deal of interest and substantive discussions” in several additional markets. “I will say that it does look like Sphere will be a global brand,” he said, “and so we should expect the expansion globally rather than just in the U.S.”
Sphere Entertainment had total revenue of $118 million in its fiscal first quarter ended September 30, down 4% from the prior-year period. MSG Networks contributed $110.2 million of revenue, down 10% year over year. MSG Networks, which operates two regional sports networks, joined Sphere following a spin-off of MSG Entertainment in April. That same month, Sphere reached an agreement to sell its stake in Tao Group Hospitality to global luxury lifestyle company Mohari Hospitality for about $300 million.
Shares of Sphere Entertainment fell as much as 8.4% to $30.58 on Wednesday morning before recovering to $31.90, down 4.4%, by mid-afternoon. The stock price took a bigger hit on Monday, however, dropping 9.6% following the company’s announcement late on Friday that CFO Gautam Ranji had left the company. Dolan attributed Ranji’s departure to Sphere being a new type of business. “It’s pretty challenging,” he said. “I think we both came to the conclusion that it probably wasn’t a great fit.”
Financial metrics for the first fiscal quarter:
Total revenue of $118 million, down 4% year over year.
Adjusted operating loss of $57.9 million, up 88% year over year.
Net income of $66.4 million, up from a $44 million net loss in the prior-year period.
Sphere revenue of $7.8 million.
Sphere event-related revenue of $4.1 million.
MSG Networks revenue of $110.2 million, down 10% year over year.