Dive Brief:

• Sphere Entertainment Co. has tacked on $125 million, or 5.75%, to the price tag on the MSG Sphere project, according to its fiscal 2023 third quarter report.
• The company, a spinoff from Madison Square Garden Entertainment, cited the overall complexity of the project as the primary cause of the price jump, according to the earnings report.
• MSG Sphere at The Venetian will be the largest spherical structure in the world at 366 feet tall and 516 feet wide, once complete in the second half of 2023. The venue will have a capacity of approximately 17,500 seats, expandable to 20,000 with standing room.

Dive Insight:

The cost estimate for the MSG Sphere project, now at $2.3 billion, follows a previous raise back in November, when inflation and global supply chain pressures pushed the price from $2 billion to $2.175 billion.

Actual construction costs paid through May 9 reached approximately $2.08 billion, according to the earnings report. Construction on the LED installation on the Exosphere was finished earlier in the third quarter, while the interior LED display will complete this month. Work is still underway on the rest of the venue’s interior spaces, including the suites and hospitality areas.

Demand for major projects remains strong across the board in the Las Vegas market, particularly in entertainment type construction. That includes projects such as the $3 billion Oak View Group entertainment development, the $600 million renovation of the Las Vegas Convention Center and the $550 million Las Vegas Dream Resort.

Rock band U2 will open the MSG Sphere venue on September 29, while Formula 1 will have a multi-day takeover of the Sphere in mid-November for its inaugural Las Vegas Grand Prix.