Events firm Madison Square Garden has withdrawn its planning application for a Las Vegas-style Sphere arena in East London due to concerns it has become a "political football between two rival parties".
The group behind the Sphere at Venetian immersive entertainment arena in Las Vegas had applied to the local planning authority, the London Legacy Development Corporation, for permission to create a circa 22,000-seat auditorium next to Stratford station in 2019, set be to the group's first international venue.
The structure's design featured a "skin" of over 100 million LED lights on its facade that would have displayed images, including advertisements, and had received approval from the London Legacy Development Corporation, which oversees the former London 2012 Olympic land.
But the plans were referred to the Mayor of London, Saqid Khan, who threw them out in November due to concerns over its impact on the welfare of local residents and its "bulky" design.
The national government's Housing and Communities Secretary, Michael Gove, then exercised his powers to "call-in" and review the scheme in December.
But the American entertainment giant has decided to stopped this in its tracks by withdrawing its planning application, despite spending millions of pounds acquiring the Stratford site.
In a letter sent to the Planning Inspectorate on 8 January, seen by CoStar News, the mega-venues developer said it was officially pulling its plans, citing its disapproval with how the application was being handled by local and national leaders.
It said: "On behalf of both Stratford Garden Development Limited and Sphere Entertainment, I write to confirm that we are officially withdrawing our application from the Planning Inspectorate process.
"The Sphere is the most technologically and artistically advanced venue in the world. It is not only an economic engine but a creative and artistic catalyst for the community it is located in.
"After spending millions of pounds acquiring our site in Stratford and collaboratively engaging in a 5-year planning process with numerous governmental bodies, including the local planning authority who approved our plans following careful review, we cannot continue to participate in a process that is merely a political football between rival parties."
The group added that it was "extremely disappointing" that Londoners would miss out on going to the venue, as well as the "thousands of well-paying jobs" it would have created.
The Stratford Sphere would have been the UK's answer to MSG's Sphere in Las Vegas, which opened in September for a total cost of $2.3 billion (£1.87 billion). It has already hosted the likes of Irish rock band U2, who have signed a 25-show residency.
A Sphere Entertainment spokesperson added in a statement: "We have informed Mr Gove that our decision not to move forward with our plans for Sphere in London stands, and we will not be participating in the call-in process. We would like to thank all of those who worked earnestly to bring this project to London.
"We are committed to continuing to work collaboratively with forward-thinking cities around the world who are serious about bringing this next-generation entertainment experience to their communities."
Reasons cited by the Mayor in his rejection of the plans last year included "significant light intrusion", the venue's "bulky, unduly dominant and incongruous form", in addition to the impact the building would have on the "historic environment" of the area.
A source linked to the project previously told CoStar News that it is looking to develop arenas in other countries, including South Korea, in the southern county of Haman.
