NY Mets Owner Buys $50M Slice of Las Vegas Sphere
Steve Cohen likes more than just baseballs when it comes to round objects. As reported by Sportico, the proprietor of the New York Mets has recently acquired a 5.5% interest in the Las Vegas Sphere.
Cohen acquired 1.56 million shares of Sphere Entertainment, which features the spherical concert hall constructed for $2.3 billion by principal owner James Dolan, and was inaugurated last September.
The recent investment was revealed through a Schedule 13G filing, mandatory for investment firms that own more than 5% of a company's total shares. Although the filing did not specify Cohen’s purchase amount, 1.56 million shares of Sphere Entertainment are currently valued at roughly $52 million.
Sphere Phishing
Cohen acquired the stock during the second quarter of this year via his Point72 Asset Management hedge fund. This was the second occasion that the group established by Cohen invested in the Sphere. Last year, Point72 held 262,102 shares, but divested them in the first quarter of 2024.
The large influx of Cohen funds arrives at a critically necessary moment. Dolan is said to be in talks for Sphere residencies with the priciest artists in the music industry — featuring Beyonce, Harry Styles, Lady Gaga, and the Eagles, who recently revealed a 12-show residency this autumn.
The Eagles will be the third residency at the Sphere, after 24 performances by Dead & Company and 40 by U2.
There is a common belief that the extraordinary proposal given to U2 to act as the Sphere’s test subjects — a claimed 90% of ticket revenue plus $10M for a specialized video production — negatively impacted the Sphere’s finances, both then and now, as other top artists believe they merit similar conditions.
Fortunately for the Sphere, most of its income comes from movie showings rather than concert events. The sci-fi film "Postcards from Earth" by Darren Aronofsky allegedly earned over $1 million in daily ticket sales on average, generating $100.5 million in total revenue from 257 shows in the latest quarter.
Two additional Sphere films are said to be in development. One will be a documentary focusing on U2, while the other offers a fresh take on “The Wizard of Oz.”
Dolan and his family continue to possess a controlling interest (6.9 million) in Sphere Entertainment. Nonetheless, Cohen is not recognized for acquiring small shares in companies he does not intend to ultimately dominate.
He initially acquired an 8% share in the Mets in 2012 for $40 million, and then he bought an additional 89% of the franchise in 2020 for $2.4 billion—marking one of the biggest deals in professional sports history.
