Sphere CFO Abruptly Quits Days Before Earnings Call; Company Reports $98.4 Million Quarterly Loss
Sphere Entertainment Co. (NYSE: SPHR), the operator of the $2.3 billion Sphere venue near the Strip, announced an operating loss of $98.4 million for the fiscal quarter ending September 30. This revelation was made during an earnings call, shortly after the company also disclosed the resignation of its chief financial officer, Gautam Ranji, in a Securities and Exchange Commission filing.
Ranji, who had been in the role for 11 months, resigned with his departure effective last Friday, as stated in the filing. The document emphasized that Ranji’s exit was unrelated to any disputes over accounting principles or practices. However, a report from The New York Post suggested that Ranji quit abruptly following a heated exchange with CEO James Dolan.
According to the report, a source shared that Ranji handed over his notice during a meeting with Dolan and a number of senior executives. The meeting was set in part to prepare for the quarterly earnings call that was scheduled on Wednesday.
According to the Post, Dolan reportedly responded by “yelling and screaming” at Ranji. Ranji, on the other hand, left the room calmly and gave his resignation notice to the company’s general counsel.
“Gautam is very calm and usually can take it and roll with it,” said a source. The Post added that the source “explained that the CFO had enough of Dolan’s hair-trigger temper.”
Ranji is the latest in recent C-level departures under Dolan’s watch. MSG Sphere president Lucas Watson, who joined the company in March last year, stepped down from his role barely a year later in February.
Christina Spade, who had been at the company in different roles since 2021 and was most recently the CEO of Dolan’s cable TV broadcaster AMC Networks left in November last year. Just three months after she was named CEO.
Just two months before, MSG Sports president and CEO Andrew Lustgarten also left after eight years at the company.
Greg Brunner, the company’s senior vice president, will step in as interim CFO. The company highlighted that despite the challenges, the recently opened venue has garnered significant global attention, including brand campaigns on the exosphere, featuring promotions for YouTube’s NFL Sunday Ticket and other global brands.
Related: This Is How Much It Costs to Place an Ad on MSG’s Sphere and It’s Nuts
The quarter’s revenue included $4.1 million from event revenue, primarily driven by the sold-out U2 shows, and $2.6 million from suite licensing and advertising on the Sphere exosphere. Despite the financial setbacks, Dolan expressed confidence in the company’s positive momentum and its ability to generate long-term value for shareholders.
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