Officials say National Harbor 6,000-seat Sphere would bring $1.3B annually

An economic-impact analysis prepared for Prince George’s County and released in coordination with the State of Maryland found the proposed 6,000-seat Sphere at National Harbor would generate $1.3 billion annually for the county and $1.5 billion statewide once operational. The study, produced by EY, also estimates construction would produce $1.6 billion in county economic benefits and $250 million more across Maryland.

The EY report projects the project would support 3,350 construction jobs and, once open, about 7,100 jobs in Prince George’s County including 1,250 employees directly at Sphere, plus another 880 jobs elsewhere in Maryland for nearly 8,000 total positions. Those figures are higher than the project-promoter estimates released Jan. 18 by Sphere Entertainment Co. and National Harbor, which projected roughly 2,500 construction jobs and 4,750 operational jobs and said the venue’s economic impact would be greater than $1 billion annually.

State and county leaders have pledged roughly $200 million in state, local, and private incentives to secure the project, including $13.5 million identified as direct public expenditures in the leaders’ pledge. Prince George’s County Executive Aisha Braveboy said the plan would rely in part on tax incremental financing, "diverting future tax revenues from the venture to help subsidize the development of the $200 million project." Braveboy added that the venue "could be built and fully operational in four years" and said the revenues "will really dwarf what we currently receive from the Commanders and Six Flags combined" and that "the estimates that we’re looking at yearly will more than triple what we’re currently getting."

The proposal was first announced Jan. 18 in a joint statement from Sphere Entertainment Co., the State of Maryland, Prince George’s County, and Peterson Companies, which identified the project as the second Sphere in the United States and the first to use a smaller-scale design. Jon Peterson, CEO of Peterson Companies, said the partnership would "further reinforce National Harbor as the national capital region’s premier destination for conventions, entertainment, retail and dining, and hospitality; deliver more economic activity and jobs; and elevate National Harbor, and Maryland, as one of the country’s preeminent tourism and entertainment hubs."

Governor Wes Moore described the project as "one of the largest economic investments in county history," saying it would create jobs, spur growth, and "showcase the very best of Maryland to the world." Sphere’s Jan. 18 press materials also stated, "Once open, the economic impact of Sphere National Harbor is expected to be greater than $1 billion annually."

Project negotiators say exact deal terms remain under negotiation and subject to approvals by Sphere, Prince George’s County, and the State of Maryland. County and state officials have presented the EY analysis as an updated study showing higher job and construction impacts than earlier estimates, but the financing mechanics and final incentive approvals have not yet been finalized. The proposed site sits at National Harbor next to the MGM complex, and county officials have framed the venue as a tool to replace lost local activity after the departures of the Washington Commanders and the closure of Six Flags in Bowie.