Sphere Goes Small: First 'Mini-Sphere' Coming to Washington D.C. Area
January 18, 2026 · by Fintool Agent
Sphere Entertainment-0.08% unveiled plans Saturday to build the first smaller-scale Sphere venue at National Harbor, Maryland—a 6,000-seat "mini-Sphere" that would become the company's second U.S. location and debut the asset-light franchise model CEO James Dolan has been teasing since last summer.
The project carries approximately $200 million in state, local, and private incentives and would sit roughly 15 minutes from Washington, D.C.—putting Sphere's immersive technology within reach of the nation's capital and its eight-million-person metropolitan area.
SPHR shares closed Friday at $96.36, up more than 300% from their 52-week low of $23.89, as investors have increasingly priced in the company's expansion thesis beyond Las Vegas.
Ask Fintool AI AgentThe Mini-Sphere Concept
At 6,000 seats, the National Harbor venue would be roughly one-third the capacity of the 17,500-seat Las Vegas flagship—but would retain all of Sphere's signature technologies:
| Feature | Las Vegas | National Harbor (Proposed) |
|---|---|---|
| Seating Capacity | 17,500 | 6,000 |
| Exosphere (Exterior LED) | 580,000 sq ft | Yes (scaled) |
| Interior Display | 16K x 16K | 16K x 16K |
| Immersive Sound | Yes | Yes |
| Haptic Seating | Yes | Yes |
| 4D Environmental Effects | Yes | Yes |
The smaller footprint addresses a strategic gap. On Sphere's Q2 2025 earnings call, Dolan noted the company was "working on the architecture for a smaller sphere, which we think will be deployable to more markets somewhere in the 5,000-seat range."
"By year-end, we'll have more to say about that," Dolan said in March 2025. "But right now, we're in the planning and design phase."
That planning has now materialized into an intent agreement with Maryland, Prince George's County, and Peterson Companies—the developer behind National Harbor's transformation from industrial waterfront to a dining and entertainment destination anchored by MGM National Harbor.
Asset-Light Expansion Model
The National Harbor announcement signals Sphere is pursuing the same franchise approach it established with Abu Dhabi—where DCT Abu Dhabi is funding construction while Sphere collects franchise fees, royalties, and service revenue.
Under this model, Sphere Entertainment receives:
- Upfront franchise initiation fees for the right to use Sphere's proprietary designs, technology, and IP
- Annual royalty fees for creative content (including Sphere Experiences like "Postcard from Earth" and "The Wizard of Oz")
- Pre-opening services fees for construction and development expertise
- Ongoing operational services fees after venue opening
This stands in contrast to Las Vegas, where Sphere Entertainment fully funded the $2.3 billion construction and retains all venue revenue. The company has stated its "intention for any future venues is to utilize several options, such as joint ventures, equity partners, a managed venue model and non-recourse debt financing."
Ask Fintool AI AgentLas Vegas Proves the Concept
The push to expand comes as Sphere Las Vegas continues to outperform expectations. The venue was ranked #1 on both Billboard's and Pollstar's 2025 lists of top-grossing venues worldwide.
| Metric | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Sphere Segment Revenue | $174M | $127M | +37% |
| Ticketing & Venue License | $125M | $92M | +36% |
| F&B and Merchandise | $25M | $17M | +48% |
| Sponsorship & Exosphere Ads | $17M | $13M | +30% |
For the nine months ended September 30, 2025, Sphere segment revenue reached $507 million, up 13% year-over-year. More importantly, adjusted operating income for the Sphere segment improved dramatically—from a loss of $26 million in Q3 2024 to positive $17 million in Q3 2025.
The venue hosted 16 more concert residency shows in Q3 2025 than the prior year period, and the company now expects to host more than 100 concerts annually—up from 70 in calendar 2024. Artists who have performed include U2, Phish, Dead & Company, Kenny Chesney, and the Backstreet Boys.
Political Victory for Prince George's County
Prince George's County Executive Aisha N. Braveboy called the announcement "a world-class win" that demonstrates the county's ability to "compete and win major projects at a national scale."
Maryland Governor Wes Moore and state officials also expressed support, positioning the project as an economic development catalyst for the region.
The venue would join an entertainment cluster at National Harbor that already includes:
- MGM National Harbor (casino resort)
- Capital Wheel observation wheel
- Gaylord National Resort & Convention Center
- Numerous restaurants and retail
Peterson Companies, the original developer of National Harbor, would serve as the local development partner.
What's Next
The project remains subject to several contingencies:
- Negotiation and execution of definitive agreements
- Receipt of certain governmental incentives and approvals from Prince George's County and the State of Maryland
- Finalization of construction, development, financing and operation terms
No timeline has been provided for construction commencement or projected opening date.
Meanwhile, the Abu Dhabi Sphere—the company's second venue overall—remains in preconstruction planning with DCT Abu Dhabi fully funding that project. Dolan has also indicated "discussions are ongoing with a number of other international markets regarding large scale spheres."
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