Form 4: Sphere Entertainment CEO's Option Exercise

Sphere Entertainment Co. Executive Chairman and CEO James L. Dolan exercised stock options and simultaneously disposed of shares to cover exercise costs and tax obligations.

Summary

• James L. Dolan, Executive Chairman and CEO of Sphere Entertainment Co. (SPHR), exercised stock options for a total of 108,630 shares of Class A Common Stock on February 17, 2026.
• The options were exercised at a price of $67.33 per share.
• Concurrently, 23,199 shares were disposed of at $114.71 per share.
• An additional 63,761 shares were withheld to satisfy the exercise price, and 21,670 shares were withheld for tax obligations, both at $114.71 per share.
• The total number of shares acquired through option exercise (108,630) equals the total number of shares disposed of (108,630) to cover the exercise price and tax withholdings, resulting in no net change to direct holdings from these specific transactions.
• Following these transactions, James L. Dolan directly beneficially owns 978,468 shares of Class A Common Stock.
• Kristin A. Dolan, also a Director and 10% Owner, indirectly holds 14,119 shares through her spouse, James L. Dolan, and disclaims beneficial ownership of his direct holdings.
• The reporting persons disclaim beneficial ownership of 746 shares held by minor children and household members.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, representing a routine insider transaction where stock options were exercised and shares were disposed of to cover the exercise price and tax obligations, resulting in no net change to direct holdings from these specific transactions.

Positives

• The exercise of stock options by the Executive Chairman and CEO indicates a realization of value from previously granted equity incentives.
• The options were exercised at $67.33 per share, significantly below the disposition price of $114.71, indicating a substantial in-the-money value.

Negatives

• A significant number of shares (108,630) were disposed of to cover the exercise price and tax obligations, resulting in no net increase in direct beneficial ownership from these specific transactions.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future outlook.

Industry Context

StockSavvy.ai notes that insider transaction reports like this Form 4 are routine disclosures and typically do not provide broad industry insights. They primarily reflect individual executive compensation and personal financial planning decisions rather than strategic industry shifts or competitive positioning.

Comparison to Industry Standards

• This Form 4 reports a standard cashless exercise of stock options, a common practice for executives to realize value from equity compensation while covering associated costs. There are no specific comparable companies or projects mentioned in the filing to assess against industry benchmarks.

Related Party Transactions

• James L. Dolan's indirect beneficial ownership includes shares held directly by his spouse, Kristin A. Dolan (14,119 shares), for which he disclaims beneficial ownership.
• Kristin A. Dolan's indirect beneficial ownership includes shares held directly by her spouse, James L. Dolan, for which she disclaims beneficial ownership.
• Both reporting persons disclaim beneficial ownership of shares held by their minor children and household members (746 shares).

Stakeholder Impact

• Shareholders: The transactions represent a routine exercise of executive compensation and do not significantly alter the company's capital structure or overall share count. The net effect on direct insider ownership from these specific transactions is neutral.
• Management: The Executive Chairman and CEO has realized value from previously granted stock options, which is a standard component of executive compensation.

Key Dates

Keywords

Sphere Entertainment Co., SPHR, James L. Dolan, Kristin A. Dolan, Insider Trading, Stock Options, Beneficial Ownership, Form 4, Executive Chairman, CEO, Director, 10% Owner, Equity Compensation, Cashless Exercise, Tax Withholding