Madison Square Garden Entertainment’s (MSG Entertainment) highly anticipated Las Vegas Sphere venue is set to cost $2.3bn (£1.8bn/€2.1bn), after the company reported a cost increase of a further $125m.
According to reports, documents showcasing the $125m increase were filed with the US Securities and Exchange Commission (SEC) yesterday (Wednesday).
The Sphere at The Venetian’s current price tag demonstrates an increase of more than $1bn from the original $1.2bn projection when the project was first announced in 2018.
Engineering firm AECOM was brought in as the main contractor for the construction of the venue in 2019, and offered a more realistic price tag of $1.7bn.
The project then faced delays, in part thanks to the COVID-19 pandemic, pushing back its projected 2021 opening date.
MSG Entertainment also announced ‘Sphere Experiences’, a core content category that will feature at the venue, with the first immersive production to be called ‘Postcard From Earth’.
In March, MSG Entertainment also finalised plans to spin off its live entertainment business, and launch a new company called Sphere Entertainment Co. This would include the Sphere venue, MSG’s sports television network MSG Networks and Tao Group Hospitality.
Just after these plans were revealed, MSG Entertainment announced the sale of its majority interest in Tao Group to Mohari Hospitality for roughly $300m.