Las Vegas Sphere loses nearly $100 million in first quarter as CFO abruptly quits
Las Vegas' iconic landmark Sphere has reported a shocking loss in its first quarter.
News of the plummeting earnings made by the music and entertainment arena in Paradise, Nevada, was reportedly shared by Sphere Entertainment Co. on an earnings call yesterday (8 November).
It's said the company reported an operating loss of $98.4 million for the fiscal quarter ending 30 Sept.
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It has also been reported that Sphere Entertainment Co. has lost its chief financial officer in an equally unexpected move.
According to a Securities and Exchange Commission filing, Guatam Ranji's exit was 'not a result of any disagreement with the company’s independent auditors or any member of management on any matter of accounting principles or practices, financial statement disclosure or internal controls'.
This comes just days after The New York Post reported that the now ex-CFO had suddenly resigned following a bout of 'yelling and screaming' subjected to him by the company's CEO, James Dolan.
A source with knowledge told the publication that Dolan had launched his outburst onto Ranji during a prep meeting for the company’s quarterly earnings presentation.
The source also alleged that Ranji subsequently left the room 'calmly', later giving his notice to the company’s general counsel.
"Gautam is very calm and usually can take it and roll with it," the source told the publication, before claiming that the CFO had reached his limit with regards to toleration over Dolan's temper.
Dolan serves as the executive chairman and chief executive officer of Madison Square Garden Sports and Madison Square Garden Entertainment, and executive chairman of MSG Networks.
He said in a statement of Sphere - which opened in September with the start of rock band U2's Las Vegas residency - that the $2.3 billion landmark 'represented a significant milestone, generating worldwide attention and marking the beginning of a new chapter for our company'.
The 'attention' that Dolan refers to includes brand campaigns being promoted on the exosphere - an example being YouTube’s NFL Sunday Ticket.
There will also be a multi-day takeover of the Sphere for the inaugural Las Vegas Grand Prix, officials of the landmark have said.
Revenue for the quarter included $4.1 million in event revenue - reportedly brought in by the two sold out U2 shows - and $2.6 million from suite licensing and advertising on the exosphere.
UNILAD has contacted Sphere Entertainment Co. for comment.
Rhianna Benson