Sphere’s Dolan Spikes Oak View Group Partnership Over Vegas Arena Plans

In a dramatic shakeup, James Dolan has abruptly ended a 14-month partnership with Oak View Group (OVG), the company co-founded by his longtime friend and legendary concert promoter Irving Azoff. The split, reported first by the New York Post, reportedly stems from OVG’s plans to build a new NBA-sized arena in Las Vegas — a move Dolan sees as direct competition to his high-profile Las Vegas Sphere.

The partnership, dubbed Crown Properties Collection, was initially formed to secure a lucrative naming rights deal for the Sphere. Oak View CEO Tim Leiweke revealed in September 2023 that they were aiming for a $40-million-per-year deal, similar to other top-tier venues like Madison Square Garden. However, no such deal has come to fruition, with Dolan recently rejecting a $30 million offer, according to insiders.

Adding to the tension, Leiweke announced last month at the VenuesNow conference that Oak View is collaborating with the Rio Casino to develop an arena on its parking lot, with a seating capacity comparable to the Sphere. He also revealed ongoing discussions to bring the ABBA Experience — a show that could potentially be adapted for the Sphere — to the yet-to-be-built venue.

Oak View’s new project could pave the way for an NBA franchise, further escalating competition in Las Vegas’ booming entertainment market. This development reportedly left Dolan questioning Leiweke’s loyalty, with a source close to the situation stating, “Tim is trying to make the Rio a lot of money, and Dolan saw that as a conflict of interest.”

Sphere Entertainment, Dolan’s company, recently reported a $125 million operating loss for the quarter, contributing to a $507 million loss for the year. The financial strain, coupled with the lack of a naming rights deal and the rise of new competition, may have influenced Dolan’s decision to cut ties with OVG, as well as OVG’s tendencies to steer business to entities directly associated with itself or Azoff’s former company, Live Nation Entertainment.

Despite the fallout, Dolan’s Sphere continues to draw attention, having launched with a U2 residency in September. As for OVG, the company remains focused on its ambitious plans for the Rio project, potentially reshaping Las Vegas’ entertainment landscape even further.

Neither Dolan nor Leiweke has publicly commented on the split, leaving industry insiders speculating about the long-term implications for both companies.