How Much Did The Sphere Cost to Build?

Last Updated on April 3, 2025
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

The newly opened MSG Sphere at The Venetian in Las Vegas is an absolute marvel of architecture and technology. With its massive spherical shape and cutting-edge immersive technologies, this venue is like nothing the world has ever seen.

But game-changing innovation and pioneering design don’t come cheap. So just how many billions did it cost to construct this ambitious, first-of-its-kind entertainment project?

How Much Did The Sphere Cost to Build?

The total cost required to build the Sphere ran to a staggering $2.3 billion. For perspective, that’s nearly 2.5 times the cost of Allegiant Stadium, home of the Las Vegas Raiders, which was the most expensive venue ever built in Las Vegas prior to the Sphere at a record-shattering $1.9 billion. It makes the Sphere one of the most expensive entertainment venues ever constructed in the world.

While early estimates during the planning phase suggested the Sphere would cost a more modest $1.2 billion, the final bill ended up being nearly double that amount due to factors like construction delays, design changes, and continuing technological advancements.

The project was financed primarily by Madison Square Garden Entertainment, led by billionaire CEO James Dolan. An exact breakdown of the full $2.3 billion budget has not been made public. However, based on industry analysis, here is an estimated percentage breakdown of where the funds were allocated:

• Construction and raw materials: 45%
• Technology and equipment: 35%
• Labor, contractors, and consultants: 15%
• Legal, permits, land acquisition: 5%

These estimates indicate the majority of costs went towards physical construction and bleeding-edge tech, with labor, legal work, and permits making up the remainder.

A Monumental Investment

To put the costs in perspective, $2.3 billion is:

• 2.5 times more than Allegiant Stadium at $1.9 billion
• Twice as much as the new Los Angeles Rams stadium at $1.15 billion
• 15 times more than T-Mobile Arena in Vegas at $375 million
• Over 20 times more than the Las Vegas Convention Center expansion at $980 million

The Sphere’s price tag even exceeds entire casino-resorts like The Cosmopolitan ($3.9 billion) and CityCenter ($9.2 billion) – although those figures include hotels, gaming, retail, and more.

Clearly, MSG was willing to put up monumental capital to bring the Sphere to life.

The Las Vegas Sphere, officially known as the MSG Sphere, is the most expensive entertainment venue ever built in Las Vegas. According to Consequence, the final construction cost of the Sphere reached $2.3 billion, far exceeding its initial estimate of $1.2 billion when announced in 2018.

The cost increased due to design complexities, supply chain disruptions during the pandemic, and inflation. The venue features cutting-edge technology, including 580,000 square feet of LED paneling and 170,000 ultra-directional speakers, making it a groundbreaking project in immersive entertainment.

On TheStreet, the Sphere’s construction costs were adjusted multiple times, eventually settling at $2.3 billion, up from earlier estimates of $2.175 billion. The increase reflects the project’s overall complexity and high material and labor costs associated with building on the Las Vegas Strip.

According to Wikipedia, the Sphere was initially projected to cost $1.2 billion but saw its budget rise to $1.66 billion in 2020 due to design changes and guest enhancements. By 2023, the total cost had climbed to $2.3 billion, making it the priciest entertainment venue in Las Vegas history. The Sphere’s unique design includes a 16K resolution wraparound LED screen and advanced audio technologies like beamforming.

The article on We Build Value highlights that the Sphere’s construction cost escalated from an initial estimate of $1.2 billion to $2.3 billion due to rising raw material prices and delays caused by the pandemic. The venue’s spherical shape required innovative construction techniques, including specialized cranes transported from Belgium.

Finally, KTNV notes that the Sphere’s construction spanned five years, with costs ultimately reaching $2.3 billion by its completion in 2023. The delays caused by supply chain issues added to the final price tag, but the Sphere has since become a landmark on the Las Vegas Strip.

Breaking Down The Budget

Constructing a one-of-a-kind spherical venue packed with custom technology was an immense financial undertaking. Here’s a deeper look at where those billions went.

Construction, Materials, and Physical Structure – Estimated $1 Billion+

A significant portion of the budget was allocated to the physical venue structure itself. This includes:

• Structural engineering – The Sphere’s free-standing, spherical frame without interior columns required complex structural engineering solutions. The system uses principles of tensegrity, where components are held together by tension rather than rigid joints. This distributes the building’s weight and makes the structure highly resistant to seismic activity.
• Specialized materials – Building a spherical frame required materials with enormous strength yet relatively lightweight. The steel trusses, metal decking, cable net structure, and other components needed exceptional durability. The double layer ETFE cladding on the exterior adds resilience.
• Foundation – The floating dome design required a robust concrete foundation and pilings sunk deep into the ground to withstand lateral motion forces.
• Constructing a spherical shape – There were no guidebooks on how to physically construct a stand-alone spherical arena. The builders had to innovate construction methods from scratch.

In total, it’s estimated that the raw building materials, engineering, and actual assembly of the Sphere structure accounted for nearly $1 billion or more of the $2.3 billion budget.

Technology – Estimated $750 Million+

As a venue designed to pioneer immersive experiences, much of the Sphere’s budget was consumed by developing and integrating complex, customized technology including:

• Interior LED display – The Sphere’s interior display with over 63 million pixels envelops the entire surface of the sphere, spanning over 580,000 square feet. It’s larger than seven football fields and considered the largest LED screen on Earth. Just the LED panels alone likely cost at least $150 million.
• Exterior LED display – Wrapping around the exterior shell of the Sphere is an additional LED display facade featuring 170,000 square feet of ultra-high-definition LED panels. Costs for the exterior LED system could easily exceed $200 million.
• Spatial audio system – With over 400 speakers using advanced beamforming technology, the Sphere’s audio system delivers hyper-immersive surround sound. The custom-designed system carries a price tag well into the tens of millions.
• Haptic haptic feedback – The Sphere incorporated haptic actuators into every seat for tactile feedback tuned to the sights and sounds. Outfitting thousands of seats likely cost tens of millions.
• Climate and air handling – The venue’s sophisticated systems to manage air temperature, ventilation, filtration and humidity for a space of this size commanded a hefty price.
• Control, AV integration, and IT – Advanced AV systems stitch together the LED, audio, haptics, and climate tech into a cohesive experience. IT infrastructure allows content to be orchestrated.

Industry analysts estimate that outfitting the Sphere with elite, customized technology solutions exceeded $750 million. This doesn’t even account for ongoing R&D and future tech integrations.

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Labor, Contractors, and Consultants – Estimated $300 Million+

Constructing the world’s most sophisticated venue required an army of contributing firms, contractors, and consultants. Key partners included:

• Populous – Architectural design
• M-E Engineers – Structural engineering
• Duisborg and Schönberg – Steel fabrication
• Fisher Dachs Associates – Theater planning and AV integration
• Claude Engle Lighting Design – Exterior lighting
• Sound Image – Audiovisual technology

In total, the Sphere project engaged over 100 contracting firms and thousands of construction workers, engineers, technicians, and developers. Meeting the demands of this complex project, especially under time crunches and supply chain issues caused by COVID-19, resulted in high labor costs.

Experts estimate at least $300 million went towards paying the workforce and consulting fees to build the Sphere.

Permits, Legal, Land – Estimated $100 Million+

Finally, a major undertaking like the Sphere incurs costs even before construction begins:

• Land acquisition – Purchasing the prime real estate on the Las Vegas Strip came with a major price tag.
• Certifications and compliance – Gaining the zoning permits, environmental approvals, and regulatory sign-offs for the project added costs.
• Legal fees – A real estate and construction project of this scale and complexity requires immense legal guidance around contracts, compliance, risk, and insurance.

These costs added up to over $100 million by conservative estimates.

Why Was The Sphere So Expensive?

What drove the Sphere’s budget up from initial estimates of $1.2 billion to the final $2.3 billion price tag?

Challenges of Unprecedented Design – As a radically novel venue concept, the Sphere could not rely on proven, predictable construction costs and timelines. The spherical shape, tensegrity system, and acoustic engineering were pioneering endeavors with unforeseen challenges.

Evolving Technology Needs – The Sphere set out to feature next-generation immersive technology that simply didn’t exist yet. The AV, LED, and haptics had to be custom-built and iterated upon during the process as the capabilities expanded.

Supply Chain Disruptions – The COVID-19 pandemic severely hampered global supply chains, making materials and technology more expensive and difficult to obtain. Shipping and transport delays also extended timelines.

Labor Shortages and Inflation – A strained construction labor market increased costs for specialized talent. Inflation drove up prices for raw materials, equipment rentals, worker wages, and other expenses.

Modifications and Additions – As with any ambitious project, modifications were made along the way as ideas evolved or issues emerged. Additions like a performance stage and expanded concession areas added costs.

By facing an unprecedented design, custom tech, external headwinds, modifications, and inflation, the Sphere’s budget leapt from $1.2 billion to its final $2.3 billion tally. But this allowed it to fully meet MSG’s expansive vision.

Comparison with Other Structures

How does the $2.3 billion price tag compare to other renowned venues or architectural marvels?

Compared to Other Vegas Venues

The Sphere lands at the very high end, but not the top, of venues on the Las Vegas Strip. Nearby Allegiant Stadium cost a record-breaking $4.3 billion for comparison. T-Mobile Arena was around $375 million and the Colosseum at Caesars Palace cost $95 million – although built decades ago.

Globally

The Sphere is believed to be one of the most expensive entertainment venues ever built per square foot. In sheer budget though, it doesn’t surpass record holders like the $20 billion Abraj Al Bait Clock Tower in Saudi Arabia or the $15 billion Tokyo Olympic Stadium.

In the venue category, it competes with Singapore’s $1.5 billion Marina Bay Sands and Barclays Center in Brooklyn at around $1 billion. The Sphere’s specialized technology likely puts it at the higher end worldwide.

Who Funded the MSG Sphere?

Given its lofty price tag, who footed the bill for the Sphere?

Main Financier: Madison Square Garden Entertainment

The project was primarily bankrolled by MSG Entertainment, the live entertainment arm of MSG run by billionaire James Dolan. MSG Entertainment put up the majority of capital and will manage operations.

Private Investment and Stakeholders

Additional funding came from high-net-worth private investors and financial institutions. While MSG Entertainment retains ownership, major tech sponsors have signed on as stakeholders contributing to construction and operational costs. These include partners like Cisco, LG, and Disguise.

Revenue from booking fees, brand sponsorships, suites, premium seats, concessions, and merchandising will ultimately determine the ROI.

Is the $2.3 Billion Price Tag Worth It?

Given the record-setting investment, a natural question is whether the Sphere can deliver sufficient return on investment to justify its astronomical costs.

Revenue Potential

Industry projections indicate the venue could generate over $100 million annually. Marquee events like U2’s residency performances and exclusive movie premieres are expected to draw visitors globally. The venue will also host corporate events.

Branding and Long-Term Value

Beyond direct revenue, the Sphere has already created a landmark identity for Las Vegas. It’s expected to enhance tourism, encourage related development, and bring prestige as a bold feat of design and engineering. This long-term value is harder to quantify but adds to the overall ROI.

Future-Proofing and Tech Integration

The sphere’s vast digital displays and modular technology integrate the physical and virtual worlds. This future-proofing and ability to constantly update experiences gives the venue longevity and adaptability for decades to come.

Reactions and Controversies

For all its wow factor, the Sphere has stirred debate and strong reactions from both supporters and critics.

Public Reception – Response among Las Vegas residents has been divided. While many are thrilled by the visual spectacle, others argued public funds should be directed to social causes rather than lavish vanity projects, especially amid economic recovery.

Criticisms and Praise – Critics slammed the extravagance as an environmental burden and symptom of corporate excess. Yet supporters praised the Sphere as an engineering milestone that cements Las Vegas as a global entertainment hub.MSG counters that it will drive tourism and deliver a projection-mapped digital art space for the public.

Future Expansion and Global Plans – While Las Vegas was first, MSG has big plans to bring Sphere venues to other cities:

Planned Spheres in Other Cities – MSG is developing proposals for Sphere venues in London, Tokyo, Dubai, and elsewhere. Sites are scouted based on foot traffic, tourism, convention business, and proximity to airports and hotels.

What Future Spheres Might Cost – Using the Vegas location as a benchmark, new Spheres are likely to carry a price tag upward of $2 billion, especially in high-cost cities. MSG will apply lessons from the first venue to potentially curb costs. But the customized technology and bespoke construction won’t come cheap.

Final Words

The MSG Sphere at The Venetian redefines what an entertainment venue can deliver with its expansive digital displays, immersive audio, haptic seating, and boundary-pushing design. Determining “worth” is ultimately subjective. In dollars, it comes down to whether the promise of tourism dollars, corporate bookings, and prestige outweigh the massive investment. Culturally, it could be a game-changer for experiential entertainment.

While $2.3 billion is objectively an astounding sum, the Sphere was also extraordinarily ambitious. Pioneering an entirely new type of venue was never going to be achievable on a budget. Its combination of innovation and showmanship is unmatched anywhere in the world. For MSG, the ROI may not solely be measured in revenue, but also in cementing the company’s position as a technological and creative leader.

In that sense, for a brand like MSG pushing the limits of what entertainment can be, the cutting-edge Sphere may indeed be worth its king’s ransom. Only time will tell, but it’s a bold investment in the future of live experiences.

Answers to Common Questions

Is the Sphere strict about bags?

Like most major event venues, the MSG Sphere has a clear bag policy to ensure security. Bags must be 12″ x 6″ x 12″ or smaller to be permitted. All bags, including purses and clutches, are subject to inspection. To avoid any issues, it’s recommended to only bring essential smaller items that fit the clear bag policy. Large bags will need to be returned to your vehicle or hotel.

How many people can fit in the Sphere?

The MSG Sphere has a maximum capacity of 20,000 guests. That’s how many people it can accommodate for a single event spanning the entire arena.

Specific seating configurations can vary per show. For concerts, approximately 17,500 seats are set up. The venue can also host smaller events utilizing just parts of the arena for a few thousand attendees. The capacity makes it one of the largest venues on the Las Vegas Strip.

How much electricity does the Sphere use?

The MSG Sphere requires massive amounts of electricity to power its industry-leading LED displays and immersive technologies. Estimates indicate the Sphere may use 100 megawatts of electricity or more – enough to power about 20,000 average U.S. homes.