Franchise Details
The Sphere franchise venue relies on DCT’s capital investment to replicate its Las Vegas architectural marvel in the UAE, which can accommodate up to 20,000 people. The agreement states DCT assumes full construction costs while paying royalties for ticketed events, IP licensing, and pre-launch support services. Sphere retains operational oversight by providing its immersive technology, trademark, and patented technology.
Financial terms require DCT to pay Sphere an upfront franchise fee, partially disbursed, with remaining payments expected when the venue hits several development benchmarks. The terms also include recurring royalties calculated from annual revenues, excluding Sphere Experience ticket sales.
The Franchise Agreement starts with a 25-year contract permit from the Sphere Abu Dhabi launch, with DCT holding two decade-long extension options. While the nitty-gritties of the venue are yet to be disclosed, the partners expect to debut a venue mirroring the Las Vegas sphere.
London Setback
The Abu Dhabi venture has revived Sphere Entertainment’s global ambitions after facing a significant hurdle when London authorities rejected its proposed 17,500-seat venue, citing light pollution and community erosion. Mayor Sadiq Khan vetoed the structure for being incompatible with residential zones. It was meant to be 300 feet tall, nearly matching Big Ben’s height.
Sphere has since recalibrated its strategy, explaining that future international projects may prioritize compact 5,000-capacity designs to balance spectacle with urban integration.
Financial Requirements Fuel Growth
Sphere Entertainment’s Abu Dhabi project is a countermeasure to mounting debt at its flagship Las Vegas venue. The $2.3 billion spectacle lost $142.9 billion in Q1 2025 and is burdened with a $1.5 billion debt.
CEO James Dolan frames global expansion as essential for the company’s survival, with franchised models. The Abu Dhabi venture is expected to help through licensing fees and royalties rather than direct operational risks.
