Sphere Entertainment concludes agreement for Abu Dhabi venue and looks for smaller-scale arenas

An agreement between Sphere Entertainment and Abu Dhabi's Department of Culture and Tourism (DCT) will see the second Sphere venue developed in the capital of the United Arab Emirates, along with further potential facilities in the Middle East and North Africa.

The landmark 20,000-capacity Sphere arena opened in Las Vegas in September 2023, with the Abu Dhabi venue to have a similar size.

In a recent filing on the new venue with the USA's Securities and Exchange Commission (SEC), Sphere Entertainment has advised that it has entered into a franchise agreement, a joint development and partnership agreement, and a pre-opening services agreement with DCT relating to the construction, development and operation of Sphere Abu Dhabi.

This followed an initial announcement in October last year that was subject to definitive documentation.

Now, under the terms of the franchise agreement, Sphere Entertainment has granted DCT the exclusive right to build and operate Sphere Abu Dhabi. DCT also has the exclusive right to build and operate additional Sphere venues in the geographic region spanning the Middle East and North Africa for a period of at least 10 years after the opening date of Sphere Abu Dhabi.

Sphere Entertainment has also granted DCT licenses for the relevant technology, patents, trademarks, The Sphere Experience content and other ancillary content for the development and operation of the Abu Dhabi facility.

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 DCT’s option.

According to the terms of the pre-opening services agreement, Sphere Entertainment will also receive fees in connection with the provision of pre-construction and construction related services to DCT.

Sphere Entertainment Executive Chairman and Chief Executive, James Dolan has also revealed that the company has completed the design phase for smaller-scale Sphere arenas and is looking at potential locations for the venues.

The move follows Dolan having revealed earlier this year that the company was working on broadening its venue concept to include smaller Spheres in the 5,000-seat range.

Speaking during an earnings call for Sphere Entertainment’s financial results for the second quarter of 2025, Dolan shed more light on the ‘mini-Sphere’ vision, advising "the design of these Spheres is quite similar to our large Sphere in Vegas, with a couple of improvements, but the business model is quite similar, which is to keep the venue busy 365 days a year.

“All the content that’s created for the Sphere in Vegas and, eventually, Abu Dhabi, will also play in any of these small Spheres. We’ve completed the design of it. We’ve also completed the business model, and the business model is designed along a franchise kind of approach.

“So, we are out in the marketplace now, beginning to expose potential investors to the business model and looking at different locations for small Spheres."

Image: The Las Vegas Sphere. Credit: iStock.