In a recent interview, Florida Governor DeSantis claims that he has beaten Disney in the ongoing feud that began last year. However, the courts might have something different to say about that. After ex-Disney CEO came out against a “Don’t Say Gay” bill last year, the governor went on the attack. Under his leadership, Florida revoked the Reedy Creek Improvement District and now is taking steps to add more oversight of Walt Disney World Resort, particularly with the Monorails.
The controversy has been accompanied by many statements by DeSantis calling the company “woke Disney” and saying “There’s a new sheriff in town.” In a speech in 2022, DeSantis declared to Disney that “You’re a corporation based in Burbank, California, and you’re going to martial your economic might to attack the parents of my state? We view that as a provocation, and we’re going to fight back against that.” In an email to supporters, DeSantis wrote, “If Disney wants to pick a fight, they chose the wrong guy.”
And a fight is exactly what it has become. Over the last year, DeSantis has continued to make statements threatening the company and the District, and Disney has continued to create magic. This changed when the Central Florida Tourism Oversight District board recently voted to overturn a development agreement that was made between the former Reedy Creek Improvement District and Disney. At this point, Disney sued the Florida governor and other leaders, including the board of the Central Florida Tourism Oversight District. This resulted in a countersuit days later from the board.
Today, there are currently two lawsuits in Florida. Disney’s lawsuit is in federal court and would lead to the undoing of all of the “retaliatory” actions of the last year. The Central Florida Tourism Oversight District has sued Disney in a state court to enforce its will. Meanwhile, Governor DeSantis and the state legislature are moving measures through to overturn the Reedy Creek development agreement with Disney and also provide more oversight over Walt Disney World monorails.
With the controversy now in the courts, everything else is up in the air. However, Governor DeSantis is declaring that he has won at this point. In an interview with Newsmax, DeSantis said “Since our skirmish last year, Disney has not been involved in any of those issues.” Gloating, he added, “Disney has not made a peep.”
This statement is not entirely accurate. Last month during an annual shareholder call for Disney, CEO Bob Iger shared his thoughts on the matter. Responding to a question from a citizen from Florida, Iger came out quite strongly against the actions of DeSantis.
“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 with an assessment that the first response to the “Don’t Say Gay” bill by his predecessor former Disney CEO Bob Chapek was not handled well. In fact, he said it was “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 was not done. He 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 was made during the shareholder call on if Disney should be taking any stances on issues that could alienate current or future customers or get into political fights like what is happening in Florida. Iger responded quite strongly to this question as well equating the current dispute to Civil Rights issues that were happening when he was a child.
“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.
Iger continued saying, “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 Disney has not come out swinging on every statement that DeSantis has made attacking the company. It has continued to make magic and stand for what the company believes is best, in a way that is guided by “decency and respect.” It also appears that Disney has focused on playing within the confines of the rules that were legally imposed on it at any given time to the best of its ability. Disney has also continued to tell stories, create magic, and encourage equal representation for all.
DeSantis could be making the argument that Disney is no longer publicly making statements on bills or lobbying against them, as it did for the “Don’t Say Gay” bill in 2022. This would be an accurate statement, however, it could also be misleading to declare victory when this dispute between Disney and DeSantis is far from over. From a certain point of view, there might be a win for DeSantis. The courts will most undoubtedly end up deciding how much truth there is to even this statement in the end though.
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