Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Sphere Abu Dhabi is a step closer to becoming a reality after Sphere Entertainment signed a franchise agreement with the Department of Culture and Tourism – Abu Dhabi (DCT).
The deal, finalised in recent weeks, was disclosed in a regulatory filing with the United States Securities and Exchange Commission (SEC).
The Abu Dhabi project had originally been announced in October 2024, but the latest filing confirms that Sphere Entertainment and DCT Abu Dhabi have now executed a Franchise Agreement, a Joint Development and Partnership Agreement, and a Pre-Opening Services Agreement, which together cover the construction, development and operation of the venue.
Sphere Abu Dhabi will be modelled on the lines of Sphere Las Vegas, which was opened in 2023. Sphere Las Vegas became one of the most talked-about entertainment venues, combining massive LED visuals, advanced sound technology, and large-scale immersive storytelling.
The $2.3 billion venue includes floor-to-ceiling wraparound interior LED screens and 170,000 ultra-directional speakers. It is currently the largest spherical structure on Earth.
Sphere is described in one of the filings as a “next-generation entertainment medium powered by cutting-edge technologies to create multi-sensory experiences at an unparalleled scale”.
Under the franchise terms, Sphere Entertainment has granted DCT Abu Dhabi the exclusive right to build and operate Sphere Abu Dhabi, as well as the exclusive right to develop further Sphere venues across the Middle East and North Africa for at least ten years following the opening. DCT has also been licensed Sphere’s proprietary technology, patents, trademarks and content, subject to guidelines and approvals.
In return, DCT Abu Dhabi will pay a franchise initiation fee in instalments linked to project milestones, along with royalties once the venue opens. The SEC filing explains that these royalties will be based on percentages of both overall revenues, and ticket sales for exclusive content.
The agreement has an initial term of 25 years, with DCT holding options for two further ten-year extensions. Sphere Entertainment will also collect fees under the Pre-Opening Services Agreement for providing pre-construction and construction-related services, and an Operational Services Agreement is expected to be concluded prior to the opening to cover ongoing technical and operational support.
Financial disclosures show how the new venue fits into the group’s strategy.
For the first half of 2025, Sphere Entertainment reported revenues of $563 million, of which the Sphere segment contributed $332 million, mainly from event-related ticketing, sponsorships, Exosphere advertising and food and beverage sales. The company also noted $115 million of production content in progress, highlighting the importance of original immersive programming that will also underpin Sphere Abu Dhabi.
When the project was first announced in 2024, James L. Dolan, Executive Chairman and Chief Executive Officer of Sphere Entertainment, said: “The vision for Sphere has always included a global network of venues, and today’s announcement is a significant milestone toward that goal. Sphere is redefining live entertainment and extending the reach of its transformative impact.”
Mohamed Khalifa Al Mubarak, Chairman of DCT Abu Dhabi, added that Sphere Abu Dhabi would “align with our Tourism Strategy 2030, further establishing Abu Dhabi as a vibrant hub for culture and innovation”.
