The plot continues to thicken as Florida Governor Ron DeSantis continues to wage war against The Walt Disney Company. This conflict began last year after then Disney CEO Bob Chapek spoke out against the so-called “Don’t Say Gay” bill. This led to the Florida Legislature dissolving the Reedy Creek Improvement District, which DeSantis then signed. This year, Florida created the new Central Florida Tourism Oversight District.
Ahead of the bill being voted on by the legislature and then signed by Governor DeSantis, Disney and the Reedy Creek Improvement District entered into an extensive agreement that gives Disney quite a wide range of control of the district moving forward. This agreement has received quite a bit of attention for a clause which states that it remains in effect until the death of the last living heir of King Charles III at the time it was signed. This would be Prince Harry and Megan’s daughter one-year-old Princess Lilibet of Sussex. This agreement and clause has led to an uproar by the board of directors for the Central Florida Tourism Oversight District and also the Florida Governor as well.
Today, the conflict was taken to a new level by Governor DeSantis who ordered an investigation into the agreement made by Disney and the former Reedy Creek Improvement District. DeSantis requested that the inspector general of Florida investigate whether the former Reedy Creek Improvement District board of directors adhered to “civil and criminal laws and ethics requirements” when it entered into the longterm development agreement that was made before the state took over the district and renamed it.
Here is the full investigation order from Governor DeSantis:
“These collusive and self-dealing arrangements aim to nullify the recently passed legislation, undercut Florida’s legislative process and defy the will of Floridians,” DeSantis wrote in a letter to chief inspector general Melinda Miguel. After he initially signed the bill creating the Central Florida Tourism Oversight District, DeSantis said, “There’s a new sheriff in town.” These efforts appear to be DeSantis following up on that statement and attempting to assert control over the district and also Disney. DeSantis has previously said he isn’t a fan of the content being made by Disney and the moves the company has made.
During Disney’s annual shareholder meeting, Iger made a public response to DeSantis’ efforts. His statement was in response to a question about the company’s “woke agenda.” “Let me if you don’t mind let me address this issue which I haven’t really done much publicly. But I’d love the opportunity just to put it all in perspective. First of all, I know you said you’re a resident, I think of Melbourne, Florida. We love the state of Florida. And I think that’s reflected in not only how much we’ve invested over the last 50 years, but how much we’ve given back in the form of jobs and community service taxes which you brought up, tourism, of course, and all sorts of other responsible business practices. We’ve also always respected and appreciated what the state has done for us. It’s kind of been a two-way street,” Iger said.
Iger continued on saying that the first response to the “Don’t Say Gay” bill by his predecessor former Disney CEO Bob Chapek was not handled well, calling it “botched.”
“But a year ago, the company took a position on pending Florida legislation. And while the company may have not handled the position that it took very well, a company has a right to freedom of speech just like individuals do,” Iger said. “And obviously in taking the position, the governor got very angry about the position Disney took and seems like he’s decided to retaliate against us, including the naming of a new board to oversee the property and the business, in effect to seek to punish a company for its exercise of a constitutional right and that just seems really wrong to me, against any company or individual but particularly against the company that means so much to the state that you live in. That you can put that in perspective we have over 75,000 employees which I noted in my opening countless thousands of indirect jobs have been created.”
Iger continued to build the case for Disney in Florida saying, “About 50 million visitors will go through our gates this year alone, about 8 million of them from outside the US and we are the largest taxpayer in the state. And you may find this interesting as it relates to future taxes but we’re currently planning now to invest over $17 billion in Walt Disney World over the next 10 years. And those investments we estimate will create 13,000 new Disney jobs and thousands of other indirect jobs and they’ll also attract more people to the state and generate more taxes. And so our point on this isn’t any action is that towards those efforts, simply to retaliate for a position the company took sounds not just anti-business but it sounds anti-Florida, and I’ll just leave it at that.”
Another question also was somewhat related to the political fight that Disney has found itself embroiled in with Florida. The caller questioned whether Disney was alienating customers or potential customers with the stances it takes. “As the CEO of the company, I think my job is to strive to do what I think is best for our business. And that includes doing best what’s best for our cast members or our employees and what will enable both to flourish? I don’t think we should or can weigh in on every issue. And I also understand there are going to be gray areas, there are going to times and we decided to weigh in on an issue that we believe is worthy of debate because of its relevance and importance to our business or to our employees,” Iger explained.
He continued, “And there are times when I’ve actually believed we shouldn’t, but I strongly feel that we alone have to determine whether when or how to weigh in on a on an issue, whether it’s private or public. Of course with the standard that when we take a position on those matters, there’s a true reason why we have. In almost all cases it has to be because it directly affects our business or our people. And I think if you look back, you know, for decades, corporate America has expressed themselves on numerous issues of both right and wrong and our country, I think, is better off for that. And it was evident during the Civil Rights era, as I recall as a child, when a lot of companies weighed in on injustice is that they saw in America. It was certainly true during World War II when those that stood in silence, in some ways, still carry the state of indifference. As long as I’m in the job, I’m going to continue to be guided by a sense of decency and respect and trust our instincts that when we do weigh in, we weigh in because the issue is truly relevant to our business and to the people that work for us.”
While Iger wasn’t directly responding to DeSantis’ move today to investigate the agreement. The Walt Disney Company has responded before saying, “All agreements signed between Disney and the district were appropriate and were discussed and approved in open, noticed public forums in compliance with Florida’s Government.”
Governor DeSantis has also called for other investigations against Disney. This includes questioning whether the Reedy Creek Improvement District board of directors were qualified for their posts, Disney employee involvement in the board’s actions, financial gain by Walt Disney World Resort, among other things. While it appears at face value by some lawyers that this long-term agreement is fairly solid for Disney, this conflict is far from over.
Daps Magic will continue to follow this story and provide updates as they become available. What do you think of this conflict between DeSantis and Disney? What do you think the solution is? Share your thoughts and opinions in the comments below in a kind way!
