Contract Finalized for Second Sphere in Abu Dhabi

• Sphere Entertainment has signed a deal to license a second Sphere in the United Arab Emirates
• The financially troubled company won’t have to pay a cent to build or operate the venue

Sphere Entertainment announced it has locked in a deal with Abu Dhabi’s Department of Culture and Tourism (DCT) to build a second Sphere in the capital of the United Arab Emirates (UAE).

The deal is a joint development and partnership agreement, and a pre-opening services agreement, with DCT for the construction, development and operation of Sphere Abu Dhabi.

In other words, it’s a franchise deal, and that’s beneficial to Sphere Entertainment since the financially struggling company won’t need to build or support the new venue.

The agreement gives the UAE “the exclusive right to build and operate a new Sphere venue and at least 10 years to build more venues in the Middle East and North Africa.” The UAE may also use all of the company’s intellectual property, technology and ancillary content.

In return, Sphere will receive a lump-sum franchise initiation fee, and an annual intellectual property royalty based on a percentage of Sphere Abu Dhabi’s total revenues — other than total ticket sales for The Sphere Experience content licensed to DCT by Sphere Entertainment Group — for that year.

The franchise agreement has an initial term of 25 years from the opening of Sphere Abu Dhabi, with up to two 10-year renewal terms at the DCT’s option.

Prior to the opening of Sphere Abu Dhabi, Sphere Entertainment and DCT expect to enter into an operational services agreement.

Details of Sphere Abu Dhabi are scarce, though Sphere Entertainment said last year that it would “echo the scale” of its 18,600-capacity Las Vegas venue, which opened with a U2 residency in September 2023.

A location in the city has yet to be announced.

In January 2024, the city of London rejected Sphere Entertainment’s proposal to build a second Sphere there, London mayor Sadiq Khan calling the proposed 17,500-seat venue a “detriment to human health” that would cause “significant” harm to “hundreds” in the area.