The world has seen what the first-of-its-kind venue Sphere can do, from the science-fiction spectacle that was the initial illumination of its LED-covered exterior in July, to this past weekend’s spectacular opening of U2’s Las Vegas concert residency.
The $2.3 billion, 366-foot-tall architectural marvel wasted no time making an impact on the city’s geographic and entertainment landscapes. Next up, we’ll witness its equally unique capabilities as a marketing brand and advertising platform.
It has already broadcast memorable content on its exosphere related to NBA Summer League basketball Trolls Band Together, launching a campaign for the November 17 movie to be showcased on the 580,000-square-foot exterior surface.and the U.S. Open, the latter of which wasn’t even held in Las Vegas. More recently, Sphere announced its first movie studio collaboration for DreamWorks’
That’s only the beginning; Sphere is expected to unveil a special campaign for November’s Formula 1 Las Vegas Grand Prix, with the race route running right beneath it.
The commercial potential of the project has been magnified by the recent founding of Crown Properties Collection, an entity that will manage global partnerships, sponsorships, naming rights and other corporate relationships for Sphere along with Madison Square Garden Entertainment’s other brands and venues, including Madison Square Garden itself in New York City, Radio City Music Hall and the New York Knicks and New York Rangers.
CPC was founded by MSG, Sphere Entertainment Company, and Oak View Group, an entertainment and hospitality company and developer of sports and entertainment venues. Oak View will operate CPC.
“I think the way Oak View and MSG looked at this is the hope that one plus one equals four or five,” says Jay Voelker, who left his post as senior vice president of business development for the PGA Tour to become president of CPC. “Oak View Group has this immense success in arena development and monetization. We certainly want to draft off the success and resources that exist with the Oak View Group ... and from the MSG perspective, the same people who have been selling Sphere and those MSG assets still exist, now complemented by another sales team. You’d be hard-pressed to find a larger commercial team out there globally.”
OWNING THE SKYLINE
Whether it’s been an AI art installation by Refik Anadol, a whimsical emoticon, or a giant glowing basketball stamped with the NBA logo, everything seen on Sphere has gone viral to some extent. Its technological prowess and captivating performance so far has made Sphere one of the most exciting media platforms in the world.
“Its power is tremendous,” says Marla Royne Stafford, UNLV professor of marketing and international business. “It’s such a unique venue, but it’s more than a venue. It’s a unique opportunity for all kinds of businesses, for visitors, for locals. The potential is unlimited.”
In addition to concerts and immersive films, Sphere is expected to host a multitude of business and cultural events, Stafford says, which also introduces more entertainment and marketing opportunities.
“It’s already attracting crowds just to go see it, like the Bellagio’s fountains, even if they aren’t going to a concert,” she says. “I can’t wait to see where it will go next and what it will do for the city.”
Voelker says the Sphere team has been conscious of its display potential from the very beginning, and finding a balance between art and commerce is a top priority.
“It’s a work of art at the end of the day,” he says. “In order to reach its full potential, we have to think globally, and that’s why they created this partnership, to leverage these resources and bring Sphere to its full potential,” he says.
“We want to be very cautious because we don’t it to be viewed as a billboard at all. We talk about leveraging the exosphere to ‘own the skyline’ of Las Vegas. How do you own the skyline? Certainly by partnering when big events come in ... but [using it] to leverage during cultural moments is how we think about it. We want to be thoughtful. It is a piece of art and we don’t want to forget that, so we’ll be strategic what we use it for.”
A PARTNERSHIP BUILT FOR THE FUTURE
Founded by Irving Azoff and Tim Leiweke in 2015, Oak View Group bills itself as the largest developer of sports and live entertainment venues in the world. It manages more than 60 convention centers across the country and recently took over management of McCormick Place in Chicago, and it has opened billion-dollar arenas for the Seattle Kraken and the New York Islanders.
Its latest project is a $10 billion complex at Las Vegas Boulevard and Blue Diamond Road that includes a 2,000-room casino resort and a 20,000-seat, NBA-ready arena.
Voelker wouldn’t comment on that project or whether such a property could be represented by Crown Property Collections, but OVG’s Leiweke told Forbes last month that CPC will be looking for more clients and future growth.
“Crown Properties Collection will represent only the most valuable properties in all of sports and entertainment together with the most revolutionary venue in the world, Sphere in Las Vegas,” Leiweke said in a statement.
Stafford says the Oak View development south of the Strip “just shows that companies see the opportunities in Las Vegas. We have created a vacation hub with entertainment, sports, gambling, food and more, very different from the Orlandos of the world.
“There is so much here, and these grand new projects like Sphere, Fontainebleau and more,” she continues. “It emphasizes what Vegas is and what it’s still becoming, going to new heights.”
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