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STOCK TITAN

[8-K] Sphere Entertainment Co. Reports Material Event

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
8-K
Rhea-AI Filing Summary

Sphere Entertainment Co. (NYSE: SPHR) has executed definitive agreements with the Department of Culture and Tourism � Abu Dhabi to develop the world’s second Sphere venue, “Sphere Abu Dhabi.� The Franchise, Joint Development & Partnership and Pre-Opening Services Agreements grant DCT exclusive rights to build and operate the venue and, for at least 10 years after opening, the option to develop additional Sphere locations across the Middle East & North Africa.

Key economics include:

  • One-time franchise initiation fee paid in tranches (portion previously received; balance tied to construction milestones).
  • Ongoing royalties payable quarterly after opening: â€� IP royalty based on a % of non-ticket revenues (subject to a minimum) â€� “Sphere Experienceâ€� royalty based on a % of ticket sales (subject to a minimum) â€� Ancillary content royalty with annual escalator.
  • Pre-opening service fees for design & construction support, with an additional Operational Services Agreement expected before launch.
The franchise term is 25 years with two 10-year renewal options.

No dollar amounts or revenue impact were disclosed, and completion remains subject to regulatory approvals, construction execution and other customary conditions. The 8-K is furnished under Item 7.01 and is not deemed “filed� for Exchange Act liability purposes.

Sphere Entertainment Co. (NYSE: SPHR) ha firmato accordi definitivi con il Dipartimento della Cultura e del Turismo di Abu Dhabi per sviluppare la seconda sede Sphere al mondo, chiamata "Sphere Abu Dhabi". Gli accordi di franchising, sviluppo congiunto e partnership e servizi pre-apertura concedono al DCT i diritti esclusivi per costruire e gestire la struttura e, per almeno 10 anni dopo l'apertura, l'opzione di sviluppare ulteriori sedi Sphere in Medio Oriente e Nord Africa.

Gli aspetti economici principali includono:

  • Una tassa di avvio del franchising una tantum pagata in tranche (una parte già ricevuta; il saldo legato a tappe di costruzione).
  • Royalty continue pagabili trimestralmente dopo l'apertura: â€� royalty IP basata su una percentuale dei ricavi non derivanti dai biglietti (con un minimo garantito) â€� royalty “Sphere Experienceâ€� basata su una percentuale delle vendite dei biglietti (con un minimo garantito) â€� royalty su contenuti accessori con incremento annuale.
  • Commissioni per servizi pre-apertura per supporto a progettazione e costruzione, con un ulteriore accordo per servizi operativi previsto prima del lancio.
La durata del franchising è di 25 anni con due opzioni di rinnovo di 10 anni ciascuna.

Non sono stati divulgati importi in dollari né impatti sui ricavi, e il completamento è soggetto a approvazioni regolamentari, esecuzione dei lavori e altre condizioni consuete. Il modulo 8-K è fornito ai sensi del Punto 7.01 e non è considerato "depositato" ai fini della responsabilità secondo l'Exchange Act.

Sphere Entertainment Co. (NYSE: SPHR) ha firmado acuerdos definitivos con el Departamento de Cultura y Turismo de Abu Dhabi para desarrollar el segundo recinto Sphere en el mundo, llamado "Sphere Abu Dhabi". Los acuerdos de franquicia, desarrollo conjunto y asociación, y servicios previos a la apertura otorgan a DCT derechos exclusivos para construir y operar el recinto y, durante al menos 10 años después de la apertura, la opción de desarrollar ubicaciones adicionales de Sphere en Medio Oriente y Norte de Ãfrica.

Los aspectos económicos clave incluyen:

  • Una cuota única de inicio de franquicia pagada en plazos (una parte ya recibida; el saldo vinculado a hitos de construcción).
  • ¸é±ð²µ²¹±ôí²¹²õ continuas pagaderas trimestralmente después de la apertura: â€� regalía de propiedad intelectual basada en un % de ingresos no relacionados con boletos (con un mínimo) â€� regalía “Sphere Experienceâ€� basada en un % de ventas de boletos (con un mínimo) â€� regalía por contenido auxiliar con aumento anual.
  • Tarifas por servicios previos a la apertura para soporte de diseño y construcción, con un acuerdo adicional de servicios operativos esperado antes del lanzamiento.
El plazo de la franquicia es de 25 años con dos opciones de renovación de 10 años cada una.

No se divulgaron montos en dólares ni impacto en ingresos, y la finalización está sujeta a aprobaciones regulatorias, ejecución de la construcción y otras condiciones habituales. El formulario 8-K se presenta bajo el Ãtem 7.01 y no se considera "presentado" para efectos de responsabilidad bajo la Ley de Intercambio.

Sphere Entertainment Co. (NYSE: SPHR)ëŠ� 아부다비 문화관광부와 세계 ë‘� 번째 Sphere 장소ì� "Sphere Abu Dhabi" 개발ì� 위한 최종 계약ì� 체결했습니다. 프랜차ì´ì¦�, ê³µë™ ê°œë°œ ë°� 파트너십, 개장 ì � 서비ìŠ� ê³„ì•½ì€ DCTì—� ë…ì ì ìœ¼ë¡� 장소ë¥� 건설 ë°� ìš´ì˜í•� 권리ë¥� 부여하ë©�, 개장 í›� 최소 10ë…� ë™ì•ˆ ì¤‘ë™ ë°� ë¶ì•„프리ì¹� ì§€ì—­ì— ì¶”ê°€ Sphere 위치ë¥� 개발í•� 옵션ì� 제공합니ë‹�.

주요 경제 ì¡°ê±´ì€ ë‹¤ìŒê³� 같습니다:

  • 단계별로 지급ë˜ëŠ� ì¼íšŒì„� 프랜차ì´ì¦� 시작 수수ë£� (ì¼ë¶€ëŠ� ì´ë¯¸ 수령; ìž”ì•¡ì€ ê±´ì„¤ 마ì¼ìŠ¤í†¤ì—� ì—°ë™).
  • 개장 í›� 분기별로 지급ë˜ëŠ� ì§€ì†ì ì� 로열í‹�: â€� 티켓 ì™� 수ìµì� %ë¥� 기준으로 í•� IP 로열í‹� (최소 금액 보장) â€� 티켓 íŒë§¤ì� %ë¥� 기준으로 í•� “Sphere Experienceâ€� 로열í‹� (최소 금액 보장) â€� ì—°ê°„ ìƒìŠ¹ë¥ ì´ ì ìš©ë˜ëŠ” 부가 콘í…ì¸� 로열í‹�.
  • 설계 ë°� 건설 ì§€ì›ì„ 위한 개장 ì � 서비ìŠ� 수수ë£�, 개장 ì � 추가 ìš´ì˜ ì„œë¹„ìŠ� 계약 예정.
프랜차ì´ì¦� ê¸°ê°„ì€ 25ë…„ì´ë©� 10년씩 ë‘� 차례 연장 옵션ì� 있습니다.

금액ì´ë‚˜ ìˆ˜ìµ ì˜í–¥ì€ 공개ë˜ì§€ 않았으며, 완료ëŠ� 규제 승ì¸, 건설 실행 ë°� 기타 ì¼ë°˜ ì¡°ê±´ì—� ë”°ë¼ ë‹¬ë¼ì§‘니ë‹�. 8-K 보고서는 항목 7.01ì—� ë”°ë¼ ì œê³µë˜ì—ˆìœ¼ë©°, ê±°ëž˜ë²•ìƒ ì±…ìž„ 목ì ì� "제출"으로 간주ë˜ì§€ 않습니다.

Sphere Entertainment Co. (NYSE : SPHR) a conclu des accords définitifs avec le Département de la Culture et du Tourisme d’Abu Dhabi pour développer la deuxième salle Sphere au monde, « Sphere Abu Dhabi ». Les accords de franchise, de développement conjoint et de partenariat ainsi que les accords de services pré-ouverture accordent au DCT les droits exclusifs de construire et d’exploiter la salle et, pendant au moins 10 ans après l’ouverture, l’option de développer d’autres sites Sphere au Moyen-Orient et en Afrique du Nord.

Les principaux aspects économiques comprennent :

  • Un droit d’entrée en franchise unique payé en plusieurs versements (une partie déjà reçue ; le solde lié aux étapes de construction).
  • Des redevances continues payables trimestriellement après l’ouverture : â€� redevance de propriété intellectuelle basée sur un pourcentage des revenus hors billetterie (avec un minimum) â€� redevance « Sphere Experience » basée sur un pourcentage des ventes de billets (avec un minimum) â€� redevance sur le contenu accessoire avec une augmentation annuelle.
  • Des frais de services pré-ouverture pour le soutien à la conception et à la construction, avec un accord supplémentaire de services opérationnels prévu avant le lancement.
La durée de la franchise est de 25 ans avec deux options de renouvellement de 10 ans chacune.

Aucun montant en dollars ni impact sur les revenus n’ont été divulgués, et la réalisation reste soumise aux approbations réglementaires, à l’exécution des travaux et à d’autres conditions habituelles. Le formulaire 8-K est fourni en vertu de l’Article 7.01 et n’est pas considéré comme « déposé » aux fins de responsabilité en vertu de la loi sur les échanges.

Sphere Entertainment Co. (NYSE: SPHR) hat endgültige Vereinbarungen mit dem Department of Culture and Tourism � Abu Dhabi getroffen, um den weltweit zweiten Sphere-Veranstaltungsort, „Sphere Abu Dhabi�, zu entwickeln. Die Franchise-, Joint Development & Partnership- und Pre-Opening Services-Vereinbarungen gewähren dem DCT exklusive Rechte zum Bau und Betrieb des Veranstaltungsorts und für mindestens 10 Jahre nach Eröffnung die Option, weitere Sphere-Standorte im Nahen Osten und Nordafrika zu entwickeln.

Wichtige wirtschaftliche Aspekte umfassen:

  • Eine einmalige ¹ó°ù²¹²Ô³¦³ó¾±²õ±ð-´¡²Ô´Ú²¹²Ô²µ²õ²µ±ð²úü³ó°ù, die in Tranchen gezahlt wird (ein Teil bereits erhalten; Restbetrag an Baufortschritte gekoppelt).
  • Laufende ³¢¾±³ú±ð²Ô³ú²µ±ð²úü³ó°ù±ð²Ô, die nach der Eröffnung vierteljährlich zahlbar sind: â€� IP-Lizenzgebühr basierend auf einem Prozentsatz der Nicht-Ticket-Einnahmen (mit Mindestbetrag) â€� „Sphere Experienceâ€�-Lizenzgebühr basierend auf einem Prozentsatz der Ticketverkäufe (mit Mindestbetrag) â€� Lizenzgebühr für Zusatzinhalte mit jährlicher Steigerung.
  • ³Õ´Ç°ù-·¡°ùö´Ú´Ú²Ô³Ü²Ô²µ²õ-³§±ð°ù±¹¾±³¦±ð²µ±ð²úü³ó°ù±ð²Ô für Design- und Baubegleitung, mit einem weiteren Betriebsdienstleistungsvertrag vor dem Start erwartet.
Die Franchise-Laufzeit beträgt 25 Jahre mit zwei Verlängerungsoptionen von jeweils 10 Jahren.

Keine Dollarbeträge oder Umsatzeffekte wurden bekannt gegeben, und der Abschluss hängt von behördlichen Genehmigungen, der Bauausführung und anderen üblichen Bedingungen ab. Das 8-K wird unter Punkt 7.01 bereitgestellt und gilt nicht als „eingereicht� im Sinne der Haftung nach dem Exchange Act.

Positive
  • Asset-light expansion: SPHR earns fees and royalties without committing significant capital to build the venue.
  • Regional exclusivity: 10-year option for additional MENA Spheres enhances long-term growth pipeline.
  • Multi-layered revenue streams: initiation fees, IP royalties, content royalties and service fees diversify income.
Negative
  • No financial magnitude disclosed, limiting visibility into earnings impact.
  • Execution and regulatory risk could delay or diminish projected cash flows.
  • Concentration risk: dependence on a single partner (DCT) and tourist demand in Abu Dhabi.

Insights

TL;DR: Long-term franchise deal opens new royalty stream but lacks disclosed dollar figures; execution and approval risk remain.

DCT secures MENA exclusivity, signalling strong regional demand for immersive venues and providing SPHR with asset-light growth. Up-front fees and minimum royalties create predictable cash flow once operational, while service contracts monetize SPHR’s technical know-how before opening. However, absence of fee schedules prevents investors from sizing the earnings uplift, and all payments hinge on project completion. Political, construction and tourist-flow risks in Abu Dhabi must be monitored. Overall, strategically positive but financially opaque.

Sphere Entertainment Co. (NYSE: SPHR) ha firmato accordi definitivi con il Dipartimento della Cultura e del Turismo di Abu Dhabi per sviluppare la seconda sede Sphere al mondo, chiamata "Sphere Abu Dhabi". Gli accordi di franchising, sviluppo congiunto e partnership e servizi pre-apertura concedono al DCT i diritti esclusivi per costruire e gestire la struttura e, per almeno 10 anni dopo l'apertura, l'opzione di sviluppare ulteriori sedi Sphere in Medio Oriente e Nord Africa.

Gli aspetti economici principali includono:

  • Una tassa di avvio del franchising una tantum pagata in tranche (una parte già ricevuta; il saldo legato a tappe di costruzione).
  • Royalty continue pagabili trimestralmente dopo l'apertura: â€� royalty IP basata su una percentuale dei ricavi non derivanti dai biglietti (con un minimo garantito) â€� royalty “Sphere Experienceâ€� basata su una percentuale delle vendite dei biglietti (con un minimo garantito) â€� royalty su contenuti accessori con incremento annuale.
  • Commissioni per servizi pre-apertura per supporto a progettazione e costruzione, con un ulteriore accordo per servizi operativi previsto prima del lancio.
La durata del franchising è di 25 anni con due opzioni di rinnovo di 10 anni ciascuna.

Non sono stati divulgati importi in dollari né impatti sui ricavi, e il completamento è soggetto a approvazioni regolamentari, esecuzione dei lavori e altre condizioni consuete. Il modulo 8-K è fornito ai sensi del Punto 7.01 e non è considerato "depositato" ai fini della responsabilità secondo l'Exchange Act.

Sphere Entertainment Co. (NYSE: SPHR) ha firmado acuerdos definitivos con el Departamento de Cultura y Turismo de Abu Dhabi para desarrollar el segundo recinto Sphere en el mundo, llamado "Sphere Abu Dhabi". Los acuerdos de franquicia, desarrollo conjunto y asociación, y servicios previos a la apertura otorgan a DCT derechos exclusivos para construir y operar el recinto y, durante al menos 10 años después de la apertura, la opción de desarrollar ubicaciones adicionales de Sphere en Medio Oriente y Norte de Ãfrica.

Los aspectos económicos clave incluyen:

  • Una cuota única de inicio de franquicia pagada en plazos (una parte ya recibida; el saldo vinculado a hitos de construcción).
  • ¸é±ð²µ²¹±ôí²¹²õ continuas pagaderas trimestralmente después de la apertura: â€� regalía de propiedad intelectual basada en un % de ingresos no relacionados con boletos (con un mínimo) â€� regalía “Sphere Experienceâ€� basada en un % de ventas de boletos (con un mínimo) â€� regalía por contenido auxiliar con aumento anual.
  • Tarifas por servicios previos a la apertura para soporte de diseño y construcción, con un acuerdo adicional de servicios operativos esperado antes del lanzamiento.
El plazo de la franquicia es de 25 años con dos opciones de renovación de 10 años cada una.

No se divulgaron montos en dólares ni impacto en ingresos, y la finalización está sujeta a aprobaciones regulatorias, ejecución de la construcción y otras condiciones habituales. El formulario 8-K se presenta bajo el Ãtem 7.01 y no se considera "presentado" para efectos de responsabilidad bajo la Ley de Intercambio.

Sphere Entertainment Co. (NYSE: SPHR)ëŠ� 아부다비 문화관광부와 세계 ë‘� 번째 Sphere 장소ì� "Sphere Abu Dhabi" 개발ì� 위한 최종 계약ì� 체결했습니다. 프랜차ì´ì¦�, ê³µë™ ê°œë°œ ë°� 파트너십, 개장 ì � 서비ìŠ� ê³„ì•½ì€ DCTì—� ë…ì ì ìœ¼ë¡� 장소ë¥� 건설 ë°� ìš´ì˜í•� 권리ë¥� 부여하ë©�, 개장 í›� 최소 10ë…� ë™ì•ˆ ì¤‘ë™ ë°� ë¶ì•„프리ì¹� ì§€ì—­ì— ì¶”ê°€ Sphere 위치ë¥� 개발í•� 옵션ì� 제공합니ë‹�.

주요 경제 ì¡°ê±´ì€ ë‹¤ìŒê³� 같습니다:

  • 단계별로 지급ë˜ëŠ� ì¼íšŒì„� 프랜차ì´ì¦� 시작 수수ë£� (ì¼ë¶€ëŠ� ì´ë¯¸ 수령; ìž”ì•¡ì€ ê±´ì„¤ 마ì¼ìŠ¤í†¤ì—� ì—°ë™).
  • 개장 í›� 분기별로 지급ë˜ëŠ� ì§€ì†ì ì� 로열í‹�: â€� 티켓 ì™� 수ìµì� %ë¥� 기준으로 í•� IP 로열í‹� (최소 금액 보장) â€� 티켓 íŒë§¤ì� %ë¥� 기준으로 í•� “Sphere Experienceâ€� 로열í‹� (최소 금액 보장) â€� ì—°ê°„ ìƒìŠ¹ë¥ ì´ ì ìš©ë˜ëŠ” 부가 콘í…ì¸� 로열í‹�.
  • 설계 ë°� 건설 ì§€ì›ì„ 위한 개장 ì � 서비ìŠ� 수수ë£�, 개장 ì � 추가 ìš´ì˜ ì„œë¹„ìŠ� 계약 예정.
프랜차ì´ì¦� ê¸°ê°„ì€ 25ë…„ì´ë©� 10년씩 ë‘� 차례 연장 옵션ì� 있습니다.

금액ì´ë‚˜ ìˆ˜ìµ ì˜í–¥ì€ 공개ë˜ì§€ 않았으며, 완료ëŠ� 규제 승ì¸, 건설 실행 ë°� 기타 ì¼ë°˜ ì¡°ê±´ì—� ë”°ë¼ ë‹¬ë¼ì§‘니ë‹�. 8-K 보고서는 항목 7.01ì—� ë”°ë¼ ì œê³µë˜ì—ˆìœ¼ë©°, ê±°ëž˜ë²•ìƒ ì±…ìž„ 목ì ì� "제출"으로 간주ë˜ì§€ 않습니다.

Sphere Entertainment Co. (NYSE : SPHR) a conclu des accords définitifs avec le Département de la Culture et du Tourisme d’Abu Dhabi pour développer la deuxième salle Sphere au monde, « Sphere Abu Dhabi ». Les accords de franchise, de développement conjoint et de partenariat ainsi que les accords de services pré-ouverture accordent au DCT les droits exclusifs de construire et d’exploiter la salle et, pendant au moins 10 ans après l’ouverture, l’option de développer d’autres sites Sphere au Moyen-Orient et en Afrique du Nord.

Les principaux aspects économiques comprennent :

  • Un droit d’entrée en franchise unique payé en plusieurs versements (une partie déjà reçue ; le solde lié aux étapes de construction).
  • Des redevances continues payables trimestriellement après l’ouverture : â€� redevance de propriété intellectuelle basée sur un pourcentage des revenus hors billetterie (avec un minimum) â€� redevance « Sphere Experience » basée sur un pourcentage des ventes de billets (avec un minimum) â€� redevance sur le contenu accessoire avec une augmentation annuelle.
  • Des frais de services pré-ouverture pour le soutien à la conception et à la construction, avec un accord supplémentaire de services opérationnels prévu avant le lancement.
La durée de la franchise est de 25 ans avec deux options de renouvellement de 10 ans chacune.

Aucun montant en dollars ni impact sur les revenus n’ont été divulgués, et la réalisation reste soumise aux approbations réglementaires, à l’exécution des travaux et à d’autres conditions habituelles. Le formulaire 8-K est fourni en vertu de l’Article 7.01 et n’est pas considéré comme « déposé » aux fins de responsabilité en vertu de la loi sur les échanges.

Sphere Entertainment Co. (NYSE: SPHR) hat endgültige Vereinbarungen mit dem Department of Culture and Tourism � Abu Dhabi getroffen, um den weltweit zweiten Sphere-Veranstaltungsort, „Sphere Abu Dhabi�, zu entwickeln. Die Franchise-, Joint Development & Partnership- und Pre-Opening Services-Vereinbarungen gewähren dem DCT exklusive Rechte zum Bau und Betrieb des Veranstaltungsorts und für mindestens 10 Jahre nach Eröffnung die Option, weitere Sphere-Standorte im Nahen Osten und Nordafrika zu entwickeln.

Wichtige wirtschaftliche Aspekte umfassen:

  • Eine einmalige ¹ó°ù²¹²Ô³¦³ó¾±²õ±ð-´¡²Ô´Ú²¹²Ô²µ²õ²µ±ð²úü³ó°ù, die in Tranchen gezahlt wird (ein Teil bereits erhalten; Restbetrag an Baufortschritte gekoppelt).
  • Laufende ³¢¾±³ú±ð²Ô³ú²µ±ð²úü³ó°ù±ð²Ô, die nach der Eröffnung vierteljährlich zahlbar sind: â€� IP-Lizenzgebühr basierend auf einem Prozentsatz der Nicht-Ticket-Einnahmen (mit Mindestbetrag) â€� „Sphere Experienceâ€�-Lizenzgebühr basierend auf einem Prozentsatz der Ticketverkäufe (mit Mindestbetrag) â€� Lizenzgebühr für Zusatzinhalte mit jährlicher Steigerung.
  • ³Õ´Ç°ù-·¡°ùö´Ú´Ú²Ô³Ü²Ô²µ²õ-³§±ð°ù±¹¾±³¦±ð²µ±ð²úü³ó°ù±ð²Ô für Design- und Baubegleitung, mit einem weiteren Betriebsdienstleistungsvertrag vor dem Start erwartet.
Die Franchise-Laufzeit beträgt 25 Jahre mit zwei Verlängerungsoptionen von jeweils 10 Jahren.

Keine Dollarbeträge oder Umsatzeffekte wurden bekannt gegeben, und der Abschluss hängt von behördlichen Genehmigungen, der Bauausführung und anderen üblichen Bedingungen ab. Das 8-K wird unter Punkt 7.01 bereitgestellt und gilt nicht als „eingereicht� im Sinne der Haftung nach dem Exchange Act.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2025

 

 

SPHERE ENTERTAINMENT CO.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Nevada   001-39245   84-3755666

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

Two Pennsylvania Plaza, New York, NY   10121
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (725) 258-0001

Not Applicable

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of Each Exchange

on Which Registered

Class A Common Stock   SPHR   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 
 


Item 7.01

Regulation FD Disclosure.

As previously disclosed, on October 15, 2024, Sphere Entertainment Co. (the “Company”) and the Department of Culture and Tourism – Abu Dhabi (“DCT”) announced that, subject to definitive documentation, they would work together to bring the world’s second SphereTM venue to Abu Dhabi, United Arab Emirates (“Sphere Abu Dhabi”). On July 25, 2025, Sphere Entertainment Group, LLC (“Sphere Entertainment Group”), a wholly-owned subsidiary of the Company, and DCT finalized and entered into a Franchise Agreement, a Joint Development and Partnership Agreement and a Pre-Opening Services Agreement (collectively, the “Agreements”) relating to the construction, development and operation of Sphere Abu DhabiTM.

Pursuant to the terms of the Franchise Agreement, Sphere Entertainment Group granted DCT the exclusive right to build and operate Sphere Abu Dhabi. Subject to the terms of the Franchise Agreement, DCT also has the exclusive right to build and operate additional Sphere venues in the geographic region spanning the Middle East and North Africa (the “Exclusive Region”) for a period of at least 10 years after the opening date of Sphere Abu Dhabi, on terms and conditions to be negotiated in good faith and mutually agreed by Sphere Entertainment Group and DCT.

Sphere Entertainment Group has also granted DCT licenses for the relevant technology, patents, trademarks, The Sphere ExperienceTM content and other ancillary content for the development and operation of Sphere Abu Dhabi. DCT’s use of Sphere Entertainment Group’s intellectual property is subject to customary guidelines, restrictions and approvals, as well as quality control procedures.

In consideration for the grants of the franchise rights and licenses described above, DCT has agreed to pay Sphere Entertainment Group a franchise initiation fee and royalties for the use of Sphere Entertainment Group’s intellectual property (including The Sphere Experience content and other creative content), in each case, in accordance with the terms of the Franchise Agreement. A portion of the franchise initiation fee was previously paid to Sphere Entertainment Group and an additional portion of the franchise initiation fee will be paid to Sphere Entertainment Group in connection with the execution of the Agreements. The remainder of the franchise initiation fee will be paid in a series of installments in connection with the achievement of specified milestones prior to the opening date of Sphere Abu Dhabi. The royalties will be payable in quarterly installments from and after the opening date of Sphere Abu Dhabi. The intellectual property royalty will be an annual fee based on a specified percentage of Sphere Abu Dhabi’s total revenues (other than total ticket sales for The Sphere Experience content licensed to DCT by Sphere Entertainment Group) for that year, subject to a specified minimum annual payment. The Sphere Experience content royalty will be an annual fee based on a specified percentage of total ticket sales for The Sphere Experience content licensed to DCT by Sphere Entertainment Group for that year, subject to a specified minimum annual payment. The royalty for ancillary content will be based on an initial annual fee that is increased by a fixed percentage annually. The Franchise Agreement has an initial term of 25 years from the opening of Sphere Abu Dhabi, with up to two 10-year renewal terms at DCT’s option.

Pursuant to the terms of the Pre-Opening Services Agreement, Sphere Entertainment Group will also receive fees in connection with the provision of pre-construction and construction related services to DCT. In addition, prior to the opening of Sphere Abu Dhabi, Sphere Entertainment Group and DCT expect to enter into an Operational Services Agreement, pursuant to which Sphere Entertainment Group will provide to be agreed upon operational services to DCT following the opening of Sphere Abu Dhabi.

The Agreements also contain customary terms and conditions, including termination rights and indemnification and limitation of liability provisions.

The information furnished pursuant to this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

Note Regarding Forward-Looking Statements

Statements and other information included in this Current Report on Form 8-K that are not historical facts, including statements about the Company’s plans, strategies, beliefs and expectations, may constitute forward-looking statements. Forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements speak only as of the date they are made and, except for the Company’s ongoing obligations under the U.S. federal securities laws, the Company undertakes no obligation to publicly update any forward-looking statement.


Forward-looking statements are subject to known and unknown risks and uncertainties and are based on estimates and assumptions that are subject to change or revision, including the anticipated progress towards completion of Sphere Abu Dhabi, that could cause actual results to differ materially from those expected or implied by the forward-looking statements or the estimates or assumptions used. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including, without limitation, the failure to obtain governmental and regulatory approvals required for the construction and development of Sphere Abu Dhabi or other Sphere venues in the Exclusive Region; unexpected costs, liabilities or delays in connection with or with respect to the development, construction and operation of Sphere Abu Dhabi or other Sphere venues in the Exclusive Region, including but not limited to changes due to general economic, political and business conditions; potential legal proceedings relating to Sphere Abu Dhabi or other Sphere venues in the Exclusive Region and the outcome of any such legal proceeding; and other risks relating to the performance of the Agreements, including the risk that the potential benefits of the Agreements are not obtained within the expected time period or at all. Additional factors that may affect the Company’s future results are identified in the Company’s most recently filed Transition Report on Form 10-KT, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. Factors other than those listed above also could cause the Company’s results to differ materially from expected results.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 28, 2025

 

SPHERE ENTERTAINMENT CO.

(Registrant)

By:  

 /s/ Mark C. Cresitello

    Name:    Mark C. Cresitello
    Title:    Senior Vice President, Deputy General
Counsel and Secretary

FAQ

What transaction did Sphere Entertainment (SPHR) announce on July 25 2025?

SPHR signed franchise, development and service agreements with Abu Dhabi’s DCT to build and operate the second Sphere venue.

Will SPHR own Sphere Abu Dhabi?

No. DCT will own and operate the venue; SPHR provides IP, content and services for fees and royalties.

How long is the franchise term for Sphere Abu Dhabi?

Initial term is 25 years with two optional 10-year renewals.

What revenues will SPHR receive from the deal?

SPHR will collect a franchise initiation fee (paid in tranches), quarterly royalties tied to venue revenues and ticket sales, and pre-opening service fees.

Does the agreement cover additional Sphere venues?

Yes. DCT holds exclusive rights to develop more Sphere venues in MENA for at least 10 years after Abu Dhabi opens.

Are dollar amounts or royalty percentages disclosed?

No, the 8-K does not specify monetary values or percentages, leaving financial impact undisclosed.
Sphere Entertainment Co

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Entertainment
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