Touring power players appear to be back on track following a turbulent few days for the stock market.

Markets in the US dipped on Friday and Monday after new data showed the unemployment rate increased from 4.1% to 4.3% in July – its highest level in almost three years – while only 114,000 jobs were added – well down from the 215,000 monthly average over the previous 12 months.

However, the BBC reports that Nasdaq, the Dow Jones Industrial Average and the S&P 500 all witnessed early gains today (6 August). Japan’s Nikkei 225 stock index also surged by more than 10%, having plummeted 12% at the beginning of the week.

Live Nation‘s share price, which opened at US$88.06, advanced almost 3% to $90.57, giving it a $21.25 billion market cap.

The company published its Q2 earnings report last week, posting $6 billion in revenue for the quarter – up 7% on the equivalent quarter in 2023. Operating income rose 21% to $466 million and AOI 21% to $716m, with the key metrics pointing to another record-setting year for the firm.

Shares in Madison Square Garden Entertainment and spin-off Sphere Entertainment have both risen

“We continue to see strong demand globally, with a growing variety of shows attracting both casual and diehard fans who are buying tickets at all price points, which speaks to the unique experience only live concerts can provide,” said Live Nation president and CEO Michael Rapino.

German-headquartered CTS Eventim, which is due to release its half-year financial report later this month, saw a small uptick to €75.55, valuing the pan-European behemoth at €7.38bn.

Shares in Madison Square Garden Entertainment and spin-off Sphere Entertainment have also both risen to $36.24 and $39.30, respectively, ahead of their upcoming financial results for fiscal Q4.

Elsewhere, MENA streaming service Anghami, owner of Dubai-based event management company Spotlight Events, has dipped almost 7% to $0.89 over the past five days, while shares in music company ATC Group, which is listed on the Aquis Growth Market in London, stand at 110p. Plus, Roblox Corp, the firm behind social gaming platform Roblox, saw a 1% uptick to $36.95.

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James Dolan has inked a new three-year contract to continue as the CEO and chairman of MSG Entertainment.

He will lead the New York-based live events company until June 2027, the company revealed last week in a regulatory filing.

Dolan, who is also the CEO of both MSG Sports and Sphere Entertainment Co., will be paid a base salary of $1.5 million per year for leading MSG Entertainment and will have an opportunity to make an annual bonus up to 200% of his salary, according to the filing.

He will also participate in the company’s long-term incentive plan, it adds. Beginning with the fiscal year starting July 1, 2024, he is expected to receive one or more incentive awards with a target value of at least $8.6m.

Point72 Asset Management has acquired a 5.5% stake in Sphere Entertainment Co

In the fiscal year ended 30 June 2023, Dolan earned a total compensation of $9.3m from MSG Entertainment. His compensation from Sphere Entertainment, which spun off from MSG Entertainment in 2023 ahead of the launch of the Sphere venue in Las Vegas in September, amounted to $16.3m. In addition, Dolan earned a total of $11m from MSG Sports.

In other news, billionaire hedge fund titan and owner of the New York Mets Steve Cohen’s Point72 Asset Management has acquired a 5.5% stake in Sphere Entertainment Co, which owns the state-of-the-art Las Vegas Sphere venue.

Point72 disclosed in a regulatory filing on Monday (24 June) that it acquired 1.56 million shares of Sphere Entertainment Co in the second quarter, including 582,400 Class A Common Stock shares, which are issuable upon exercise of options.

This is the second time Point72 has acquired a chunk of Sphere stock, having previously owned 262,102 shares at the end of 2023, which it sold in the first quarter, the New York Post reported.

In the wake of the news, Sphere stock jumped 7.2% to $34.84 on Tuesday.

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Madison Square Garden (MSG) Entertainment has officially withdrawn its planning application for a 21,500-capacity replica of the Las Vegas Sphere in east London.

In a letter to the Planning Inspectorate, MSG said it could not continue to participate in a process that was “merely a political football between rival parties”.

The project was first announced more than five years ago and was approved in principal by the London Legacy Development Corporation (LLDC) in March last year, despite objections from various parties including local residents, councillors and rival companies.

AEG Europe was a vocal opponent of the venue, which would have been located four miles from The O2 (20,000-cap) in North Greenwich, and has previously called on Levelling-up secretary Michael Gove to block the proposal.

“It is extremely disappointing that Londoners will not benefit from the Sphere’s groundbreaking technology”

In November last year, the Mayor of London rejected plans for an MSG Sphere in London as he believed the proposals “would result in an unacceptable negative impact on local residents”.

Weeks after, Gove ordered a six-week pause to consider whether to call in the application for the development. However, MSG has now informed Gove that will not be participating in the call-in process.

“The Sphere is the most technologically and artistically advanced venue in the world. It is not only an economic engine but a creative and artistic catalyst for the community it is located in,” writes Richard Constable, EVP, global head of government affairs & social impact, in the letter to the Planning Inspectorate.

“After spending millions of pounds acquiring our site in Stratford and collaboratively engaging in a 5-year planning process with numerous governmental bodies, including the local planning authority who approved our plans 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.”

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Madison Square Garden (MSG) Entertainment boss James Dolan says the company’s controversial MSG London Sphere scheme is “moving forward”.

MSG’s futuristic $2.3 billion Sphere at The Venetian in Las Vegas, US, launched to rave reviews last Friday with U2’s U2:UV Achtung Baby Live At Sphere residency, but progress on a proposed London replica has been slow.

But speaking to Variety, MSG executive chair and CEO Dolan insists the development – along with other potential spinoffs outside North America – is “still very much moving forward”.

“That is definitely a big part of the business plan, to build more Spheres all over the world,” he adds. “And by the way, different-size ones too – probably not much bigger than the one in Vegas, but we’ve actually gone through already architectural drawings and designs for smaller Spheres for smaller markets.”

Plans for the 21,500-cap UK venue, which would become MSG’s first property outside of the US, were first announced more than five years ago and were approved in principal by the London Legacy Development Corporation (LLDC) in March last year, despite objections from various parties.

However, AEG called on levelling up secretary Michael Gove to block the proposal earlier this year. Gove issued a holding direction to the LLDC, meaning the organisation and London mayor Sadiq Khan are prevented from signing off the plans before Gove rules on whether they need to be “called in” for further scrutiny.

If given final approval, the Sphere will be located in Stratford, east London, four miles from AEG’s The O2 (20,000-cap) in North Greenwich. AEG is a longtime critic of the scheme, having voiced concerns over its proximity to The O2 and – according to a 2019 investigation by The Times – creating a residents’ group in opposition.

“Since we have the experience of building the first one, it won’t be as expensive as the first one”

MSG has suggested that London has an “undersupply” of dedicated large entertainment venues compared with cities such as Berlin, Paris, Madrid and New York. The capital’s next biggest indoor spaces are the 12,500-cap OVO Arena Wembley and the 10,400-cap Alexandra Palace.

The construction costs of the “next generation” Vegas project escalated to $2.3 billion (€2.1bn) – leading some observers to query whether subsequent venues would be too expensive to build (the estimate for the London development was widely reported as £800m, pre-pandemic).

“We have a fully developed construction design and construction company that has a lot of experience building all over the world,” he says. “And since we have the experience of building the first one, it won’t be as expensive as the first one.”

Dolan expects the Vegas Sphere to be profitable despite costs running almost double its original $1.2bn budget.

“Yes, I absolutely expect it to be profitable,” he says. “Will it generate enough profits to justify the capital that was put into it? I think so, but it remains to be seen. I mean, so far, the biggest hurdles in that is making sure that you have a product that the consumer is going to want. And what I’ve seen of our product, I think we have that.

“And then it comes down to marketing and selling tickets and generating revenue and sponsorships, and that all looks like it’s on a very good trajectory. We’re already seeing worldwide interest from other countries that are talking to us about building [Spheres] for them.”

The London project was back in the headlines this week, with the Evening Standard reporting that developers had offered locals blackout blinds to make up for the glowing images they would be broadcasting via the structure’s external LED panels. Officials gave the green light to its digital advertising display plans in January 2023.

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James Dolan’s Sphere Entertainment has posted revenue of US$573.8 million (€531m) and an operating loss of $273m for the 2023 financial year ahead of next month’s launch of its next-generation Las Vegas venue.

The Madison Square Garden (MSG) spin-off encompasses the first Sphere venue – the 17,500-seat/20,000-cap Sphere at The Venetian in Las Vegas – as well as MSG Networks MSG Networks and Tao Group Hospitality businesses.

For the fiscal 2023 fourth quarter, Sphere Entertainment reported revenues of $129.1m, plus an operating loss of $70.3m and an adjusted operating loss of $59.8m.

Its Q4 results included the spin-off of approximately two-thirds of the firm’s traditional live entertainment business plus the sale of its 66.9% majority interest in Tao Group.

“Our company completed a number of transactions this past year, including the live entertainment spin-off, that have supported our growth plans,” says executive chairman and CEO Dolan. “As we look ahead to our next chapter with the opening of Sphere in Las Vegas, we are confident that our company is well-positioned to generate long-term value for shareholders.”

The Sphere segment reported revenues of $0.7 million and direct operating expenses of $1.1m for Q4, which reflected “advertising and marketing costs related to Sphere in Las Vegas”. An operating loss of $95.2m was reported for the quarter – up $2.8m on the prior year quarter – primarily reflecting the increase in selling, general and administrative expenses.

“Throughout fiscal 2023, we saw robust demand for our portfolio of live entertainment offerings”

The venue is set to open on 29 September with U2’s residency, U2:UV Achtung Baby Live At The Sphere, which elicited a million ticket request registrations for its on-sale.

MSG Sphere will introduce the first 16K screen that wraps up, around, and behind the audience, and also boasts Sphere Immersive Sound and 4D technologies. In May, Sphere increased the estimated construction cost of the venue to $2.3 billion.

Last week, the separate MSG Entertainment business reported revenues of $851.5m for fiscal 2023, up 30% on the pandemic-impacted previous year. It also reported operating income of $105m, and adjusted operating income of $175m.

MSG Entertainment includes New York City’s 20,000-cap Madison Square Garden, The Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre, along with the firm’s entertainment and sports bookings business and long-term arena licence agreements with the NBA’s New York Knicks and NHL’s New York Rangers. The statement notes the company sold its controlling interest in Boston Calling Events in December 2022.

“Throughout fiscal 2023, we saw robust demand for our portfolio of live entertainment offerings,” adds Dolan. “Looking ahead, we see this momentum carrying into fiscal 2024 and believe we are well positioned to generate ongoing growth and value creation for shareholders.”

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It has been a strong week for touring power players on the stock market, with Live Nation, CTS Eventim and Madison Square Garden (MSG) Entertainment all seeing significant gains.

Billboard‘s Global Music Index increased 4.4% to 1,256.06, with 15 of the 21 stocks showing an upswing over the past week. Shares in concert giants LN and CTS were up 8.4% and 9.2% respectively, spurred by recent positive financial results for Q1 2023.

Live Nation posted revenue of $3.1 billion (€2.8bn) for the first quarter – up 73% on the corresponding period 12 months ago – with record results across all divisions. The earnings call prompted a notable uptick in the company’s share price, increasing from $66.76 to $75.91. The stock has since soared a further 12%, standing at $85.13 at press time, boosted by a bullish forecast by CEO Michael Rapino.

“What is clear as we look at our results and operating metrics is that global demand for live events continues to reach new heights – demand has been growing for a long time and is showing no signs of letting up,” said Rapino. “We expect to host a record number of fans this year, even against a 2022 comparison which benefited from rescheduled shows attended by 20 million fans.”

“The results show that live entertainment remains as popular as ever”

It is a similar story at pan-European giant CTS, which reported last week that ticket sales were up 58% on 2022, while consolidated revenue rocketed 163% year-on-year to €366.2m. Shares in the German-headquartered firm jumped 3% to €62.60 and have continued on an upward curve to €64.75.

“The results show that live entertainment remains as popular as ever,” said CEO Klaus-Peter Schulenberg. “Our customers have high expectations when it comes to buying tickets – especially for tours featuring top acts – and we have comfortably met these expectations. Both in Germany and internationally, we are pursuing organic growth and anticipate that our business performance will continue on its successful course.”

But it was MSG Entertainment, which reported a 4% year-on-year rise in revenues to $201.2m for the fiscal 2023 third quarter – its first as a standalone company following its spin-off from Sphere Entertainment – that experienced the biggest uplift. Shares leapt a huge 19.4% amid rumours it is negotiating a $1 billion deal to sell the former Hulu Theater, as Guggenheim initiated coverage of the company with a buy recommendation. The share price increased a further 2% today to $36.54.

“With the completion of our spin-off, MSG Entertainment begins its new chapter as a standalone, pure-play live entertainment company,” said executive chairman and CEO James L. Dolan. “We remain confident in the strength of our assets and brands and believe that we are well-positioned to create long-term value for shareholders.”

“We remain confident that this next chapter for our company will drive long-term shareholder value”

Shares in Sphere Entertainment also improved 6.1% last week and a further 1% today to $24.97. The firm reported an operating loss of $70.3m for fiscal Q3 on revenues of $363.3m.

“As we approach the opening of Sphere in Las Vegas, we remain confident that this next chapter for our company will drive long-term shareholder value,” said Dolan.

Billboard also reports that share prices for HYBE, SM Entertainment, YG Entertainment and JYP Entertainment have increased by an average of 75% year to date.

Elsewhere, Anghami, the largest music streaming service in the Middle East and North Africa (MENA), which acquired Dubai-based event management company Spotlight Events, climbed 1.7% and stands at $1.26.

UK-based music company ATC, which listed on the Aquis Growth Market in London in December 2021, has also seen its share price rise from 90p (€1.03) to 92.5p over the past month. The firm bettered its own expectations to record a profit on revenue of £12.1 million (€13.9m) in its first full year as a a public company.

“We are delighted with the progress we have made in our first year as a PLC, delivering 33% top line growth and profitability earlier than expected, whilst also investing in a number of important strategic developments for the group,” said ATC Group plc CEO Adam Driscoll.

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U2 have revealed an additional eight dates for their U2:UV Achtung Baby Live At Sphere residency, bringing the total number of shows to 25.

More than one million ticket requests have been received for the run, which will launch Madison Square Garden (MSG) Entertainment’s 17,500-seat/20,000-cap Sphere at The Venetian in Las Vegas venue in September.

Sphere Entertainment and Live Nation initially announced five nights from 29-30 September and 5, 7-8 October, before confirming an additional 12 (11, 13-14, 18, 20-21, 25, 27-28 October and 1, 3-4 November). The latest concerts have been announced for 1-2, 6, 8-9, 13 and 15-16 December.

Based around U2’s classic 1991 album Achtung Baby, the series will be the band’s first live shows since The Joshua Tree 30th anniversary stadium tour of 2017-19.

Tickets start at US$140 (€127) and will reflect all-in pricing. Promoters say the larger capacity allows for 60% of tickets to be priced under $300, while there will also be a limited number of premium priced tickets per show.

Meanwhile, the construction costs of the “next generation” Sphere project, which is on track to open this September, have escalated by a further US$125 million to $2.3 billion (€2.1bn).

“As construction nears completion of Sphere in Las Vegas, the company has adjusted its construction cost estimate”

“The company continues to make significant progress in its final phases of construction of Sphere in Las Vegas,” Sphere Entertainment revealed in its fiscal Q3 2023 results this week. “This includes completing LED installation on the Exosphere earlier in the third quarter, and the interior LED display plane this month, while continuing to build out the venue’s interior spaces, including the suites and hospitality areas.

“As construction nears completion of Sphere in Las Vegas, the company has adjusted its construction cost estimate, inclusive of core technology and soft costs, to approximately $2.3 billion, from its prior estimate of $2.175 billion, with the increase primarily reflecting the overall complexity of the project. Actual construction costs paid through May 9, 2023 were approximately $2.08 billion, which was net of $65 million received from The Venetian Resort.”

The firm reported an operating loss of $70.3m, down from $71.1m a year earlier, on revenues of $363.3m (up 3% YOY) .

“With the completion of the spin-off of our traditional live entertainment business and the sale of our interest in Tao Group Hospitality, our company has enhanced flexibility to execute its business strategy,” says executive chairman and CEO James L. Dolan. “As we approach the opening of Sphere in Las Vegas, we remain confident that this next chapter for our company will drive long-term shareholder value.”

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U2 have added a further five dates to their U2:UV Achtung Baby Live At Sphere residency after receiving more than one million ticket requests for the shows.

The run will launch Madison Square Garden (MSG) Entertainment’s 17,500-seat/20,000-cap Sphere at The Venetian in Las Vegas venue in September.

The Irish group initially announced five nights from 29-30 September and 5, 7-8 October, before confirming an additional seven (11, 13-14, 18, 20-21 and 25 October). Now, Sphere Entertainment and Live Nation have revealed five more dates – 27-28 October and 1, 3-4 November – bringing the total number of concerts to 17.

Tickets start at US$140 (€127) and will reflect all-in pricing. Promoters say the larger capacity allows for 60% of tickets to be priced under $300, while there will also be a limited number of premium priced tickets per show.

Based around U2’s classic 1991 album Achtung Baby, the series will be the band’s first live shows since The Joshua Tree 30th anniversary stadium tour, which was seen by 3.28 million fans worldwide from 2017-19 and grossed US$390.8 million.

The $2.18 billion Sphere is a “next-generation entertainment medium” that promises to “redefine the future of live entertainment”. It will introduce the first 16K screen that wraps up, around, and behind the audience, and also boasts Sphere Immersive Sound and 4D technologies.

“There’s nothing else like it in the world and won’t be for many, many years”

“The idea behind U2 is always to make the worst seat in the house the best seat in the house,” Bono told Apple Music’s Zane Lowe. “This changes the whole dynamic on that. Most music venues [bigger than theatres] are sports venues. They’re built for sports, they’re not built for music. They’re not built for art. So this building was built for immersive experience in cinema and performance. You can’t come here for an ice hockey game.”

“The sound has been designed as a priority from the beginning,” added The Edge. “There’s nothing else like it in the world and won’t be for many, many years. I think the truth is that depending where you are in the venue, you will get your own very unique show.”

The pair also commented on the possibility of their residency expanding further still.

“I don’t know,” said Bono. “We’ll have to see if we like this. We’ll have to see if our audience love this. I think it’s going to be hard to get us out of here. We’re not touring Achtung Baby anyway. With The Joshua Tree, we took that album around the world. This will only be here.”

“Don’t forget it’s 18,000 to 20,000 people a night so you’re not going to be doing 100 shows,” noted The Edge. “I mean, it’s impossible.”

Last week, MSG announced “Sphere Experiences” as part of its opening programming at MSG Sphere at The Venetian in Las Vegas. The concept will launch this October with a “first-of-its-kind” immersive production Postcard from Earth.

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Madison Square Garden Entertainment has announced “Sphere Experiences” as part of its opening programming at MSG Sphere at The Venetian in Las Vegas.

One of the core content categories to be featured at the 20,000-cap venue, the experiences concept will launch this October with a “first-of-its-kind” immersive production Postcard from Earth.

The result of collaborations between Sphere Studios – Sphere’s in-house creative and production studio – and acclaimed storytellers and creatives, Sphere Experiences are original immersive productions designed exclusively for the facility. Each Sphere Experience will be approximately 60 minutes in length, and productions are slated to run multiple times per day, year-round.

“We are redefining the future of entertainment through Sphere,” says James L. Dolan, executive chairman and CEO, MSG Entertainment. “Sphere provides a new medium for directors, artists, and brands to create experiences that cannot be seen or told anywhere else, and Sphere Experiences are just one of the ways we will use the venue’s technologies to engage the senses and transport audiences to places both real and imagined.

“Postcard from Earth will set a new bar for multi-sensory storytelling possibilities”

“Postcard from Earth will set a new bar for multi-sensory storytelling possibilities, and we look forward to having audiences experience it at Sphere this fall.”

According to the Las Vegas Review-Journal, the Postcard from Earth project will be directed by filmmaker Darren Aronofsky, with production currently underway. As the first Sphere Experience, it will “utilise the full breadth of Sphere’s technological capabilities to create a multi-sensory storytelling journey”.

MSG Sphere will introduce the first 16K screen that wraps up, around, and behind the audience, and also boasts Sphere Immersive Sound and 4D technologies. U2 will launch the venue this autumn with the U2:UV Achtung Baby Live At The Sphere residency.

Earlier this year, MSG promoted long-serving executive Josephine Vaccarello to EVP, live. Vaccarello will lead the company’s live entertainment bookings across all of its venues, including MSG Sphere Las Vegas

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Madison Square Garden Entertainment (MSG) has promoted long-serving executive Josephine Vaccarello to executive vice-president, live.

Vaccarello, who began her MSG in 1998 as an administrative assistant, previously served as SVP, MSG live and business operations.

In her new role, she will lead the company’s live entertainment bookings business across all of its venues, including New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre, and The Chicago Theatre. She will also be responsible for booking concert residencies at the new MSG Sphere, which is scheduled to open in Las Vegas in the second half of this year.

“Over her tenure at MSG Entertainment, Josephine has been instrumental in growing our live event business by pursuing innovative opportunities including multi-night bookings and unique residencies, and bringing unforgettable events featuring the world’s biggest artists to our venues,” says James Dolan, MSG executive chairman and CEO. “In this new leadership role, I am confident she will continue to raise the bar within the live entertainment industry by leveraging her unparalleled relationships and expertise across our portfolio and in booking our newest venue – the state-of-the-art MSG Sphere.”

“We have a lot of big ideas for the future that will make an indelible mark on live entertainment”

Vaccarello was most recently responsible for booking concerts, comedy, all family entertainment and theatrical properties, and special events, in addition to overseeing the live division’s business strategy. She has been instrumental in bringing residencies and shows to MSG venues including Billy Joel’s ongoing run; 15 nights of Harry Styles and Phish’s annual New Year’s Eve run.

As EVP, live, she will focus on optimising the use of MSG venues and developing strategies that maximise growth by introducing new signature events, conceptualising artist residencies, and delivering unique experiences for artists and fans.

“Throughout my 25 years at this company, I’ve had unique opportunities to grow and evolve my career within the organisation, and I’m honoured to take on this elevated leadership role, particularly as MSG Entertainment expands its live entertainment business,” says Vaccarello. “We have a lot of big ideas for the future that will make an indelible mark on live entertainment and I’m looking forward to continuing to create iconic moments with artists for our fans in New York, Chicago and soon, Las Vegas.”

Earlier this week, MSG announced that it expects to complete its proposed spin-off its live entertainment and MSG Networks divisions by the end of March.

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