Chicago-based Ariel Investments trimmed its stake in Sphere Entertainment by more than 700,000 shares, or 22% of its position, during the first quarter, according to a Thursday SEC filing. It leaves the asset manager with 8.6% of Sphere’s Class A shares, down from 11.1%; Ariel still ranks as the third largest institutional holder.
Sphere’s shares have been on a tear, up 42% year-to-date and 455% from its 2025 April low, when leisure stocks were dragged down by an escalating trade war, and Sphere faced potential bankruptcy for its MSG Networks division.
MSG Networks and its lenders ultimately completed a debt restructuring that had lenders forgo $514 million of the original $804 million in debt. Sphere has crushed earnings estimates in recent quarters, fueled by its latest Sphere Experience hit, The Wizard of Oz. The reimagined 1939 film classic, which hit Sphere’s screens in August 2025, generated more than $260 million in ticket sales during its first five months.
Sphere Entertainment has also made progress this year on James Dolan’s vision for a global network of Sphere venues. In January, it announced plans for its second U.S.-based venue located in Maryland’s National Harbor, 15 minutes south of Washington, D.C. It will be a smaller-scale Sphere with a capacity of 6,000 seats. The Vegas Sphere has 17,600 seats and can hold up to 20,000 people.
This week, Sphere revealed its Abu Dhabi venue will be at Yas Island next to SeaWorld Abu Dhabi. The Department of Culture and Tourism–Abu Dhabi is funding construction of the 20,000-seat venue that is expected to cost $1.7 billion and be completed by the end of 2029.
Ariel is not the only institution cutting back on its Sphere exposure. The hedge fund of New York Mets owner Steve Cohen, Points72 Asset Management, sold almost its entire position in Sphere Entertainment as the stock soared last year. Cohen’s fund unloaded 1.3 million shares, or 85% of its stake, over the six months ending Sept. 30.
Ariel still maintains large exposure to the sports industry, including fellow Dolan-controlled companies Madison Square Garden Sports and Madison Square Garden Entertainment. “We have a lot of confidence in Jim Dolan,” John Miller, portfolio manager at Ariel, told Sportico in a 2024 video interview. “He has done really well over the decades to enhance shareholder value. He’s a terrific visionary.”
The firm, which has $14 billion in assets under management, is the largest institutional holder of Manchester United with 9 million shares, representing a roughly 5% stake. Ariel also launched a new fund, Project Level, focused on women’s sports. Its first $250 million close was in February, and it is ultimately targeting $1 billion. Project Level has so far invested in the NWSL’s Denver Summit FC, League One Volleyball (LOVB) and the new NFL-backed flag football league.
Ariel did not immediately respond to a request to comment on the Sphere share sale.
Mellody Hobson and John Rogers are co-CEOs of Ariel. Hobson has made several personal investments in sports, including stakes in MLB’s Chicago White Sox, the NFL’s Denver Broncos, LOVB and the WNBA.
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