The Sphere’s Dolan Splits with Oak View Over New Las Vegas Arena Project

James Dolan, who runs Sphere Entertainment and owns the New York Knicks, has ended his partnership with Oak View Group, a firm co-founded by his friend and notable concert promoter Irving Azoff. This quick change happened after Oak View said it was working on a big project in Las Vegas. This new project might rival Dolan’s hip new venue, the Sphere.

New $10B Oak View Arena Could Compete with Dolan’s High-Tech Sphere

Reports suggest that Oak View has plans to build a $10 billion NBA-size arena in the Rio Casino parking lot. The new 20,000-seat venue would compete with the high-tech immersive Sphere, which can hold 18,600 people. Since it opened in 2023, the Sphere has become a top entertainment spot known for its state-of-the-art visuals and big events like U2’s residency.

Dolan and Oak View Group joined forces in September 2023 creating the Crown Properties Collection. This team-up had a goal to get a big-money naming rights deal for the Sphere shooting for around $40 million each year. But things did not go as planned. The partnership had a hard time getting results. Dolan even said no to a $30 million offer for the venue’s naming rights. 

Adding to the pressure, Sphere Entertainment’s latest financial report showed some bad news. It lost $125 million in just three months and $507 million over the whole year. This caused the company’s stock value to drop by almost 7%.

Leiweke’s ABBA Show Discussions Fuel Dolan’s Concerns Over Sphere Rivalry

The rift between Dolan and Oak View grew deeper when Oak View’s CEO, Tim Leiweke shared at the VenuesNow conference that his company was in talks with the creators of the ABBA Experience show, which is doing well in London, to bring the performance to Las Vegas, reported The New York Post. Those in the know hinted that this show could fit into the Sphere making Leiweke’s announcement a big worry for Dolan. The move hinted at Leiweke’s dual interests potentially encroaching on the Sphere’s programming opportunities.

Dolan has not said anything about why they split up, but people familiar with the matter think Leiweke’s plans to build a big entertainment venue in Las Vegas — and talks about popular acts like ABBA — might have made Dolan worry about direct rivalry. Oak View’s goal to get an NBA team for their planned arena also showed how competitive the landscape is in a city that already has lots of well-known entertainment venues.

Dolan’s choice to end the partnership has caused waves within Crown Properties. Sphere Entertainment put $51 million into an 8.3% stake in the joint venture, and workers who moved to Crown from Madison Square Garden are now heading back. People who keep track of the industry point out that this is not the first time Leiweke has clashed with big sports owners. His past fights with Phil Anschutz of the Los Angeles Kings and short stays at Maple Leaf Sports & Entertainment show how rocky his career in running venues has been.