Disney Continues to Warn Investors About Potential Impact of DeSantis’ Retaliatory Actions in Florida

Following the release of Q3 earnings yesterday, Disney has filed a document that dives into the results a bit more and provides more granular details about the quarter’s results. For the second quarter in a row, The Walt Disney Company has added a caveat to its quarterly earnings report to include actions taken by Florida Governor Ron DeSantis

Following retaliatory action from Florida Governor Ron DeSantis and a rubber-stamp legislature, Disney has added Florida to a list of legal threats to the Company’s operations. Florida joins a list of international political, trade, and security policy threats like the ongoing actions by Russia, threats to Hong Kong by China, and instability in France. This is the first earnings report to mention the ongoing situation with the State of Florida.

Here’s the caveat that references the Florida situation, and a note that it’s possible that the Company may have already been impacted by DeSantis’ actions:

In Florida, steps directed at the Company (including the passage of legislation) have been taken and future actions have been threatened, which collectively could negatively impact (and may have already impacted) our ability to execute on our business strategy, our costs and the profitability of our operations in Florida.

Dueling Lawsuits

There are two high-profile lawsuits currently in the courts that take aim at a Development Agreement that Disney entered into with the previous Board of Supervisors of the then-named Reedy Creek Improvement District.

One lawsuit was filed by Disney World against Florida Governor Ron DeSantis and the Central Florida Tourism Oversight District (CFTOD) Board of Supervisors, among others. The lawsuit asks the court to recognize the Development Agreement as valid and to recognize the series of events and bills that led to the State takeover of the Reedy Creek Improvement District as a violation of the First Amendment rights of the Company. Ultimately, Disney wants the State takeover of the RCID to be undone.

In a separate lawsuit, the CFTOD is suing Disney World, asking the court to recognize the Development Agreement as null and void, citing a series of contract infirmities.

A State Prison at Disney World?

Beyond the Development Agreement, DeSantis has threatened to build a State prison at Walt Disney World. In an April 17th press conference, DeSantis floated some ideas on how CFTOD could use its land should the Development Agreement be determined to be null and void. It sounds farfetched, but DeSantis floated the idea among a list of other ideas for land use such as building more amusement parks in the immediate area next to Disney World.

What should we do with this land? And so, you know, it’s like, ok, kids – I mean, people have said, you know, maybe have another – maybe create a state park. Maybe try to do more amusement parks. Someone even said, like, maybe you need another state prison. Who knows? I mean, I just think that the possibilities are endless.

Ron DeSantis, Florida Governor

A State Prison at Disney World? DeSantis Announces Plans to Undo Reedy Creek Contract & Expand State Targeting of Disney World

In a press conference this afternoon, Florida Governor Ron DeSantis announced his next steps in the fight with Walt Disney World


Legislation Might Over Legal Proceedings

On May 5th, DeSantis decided to get ahead of the pending court cases and simply sign a law to nullify the Development Agreement in what appears to be a flexing of executive might. Instead of relying on the court system to agree with the legal arguments of why the Development Agreement should be nullified, DeSantis signed SB 1604, a land use bill with a narrowly written amendment from Republican legislators to nullify the Development Agreement legislatively.

Florida Governor Ron DeSantis Signs Bill to Nullify Disney World’s Reedy Creek Development Agreement

Today, Florida Governor Ron DeSantis signed a bill that would nullify Disney World’s Development Agreement contract


Following the stroke of the Governor’s pen, Disney World amended its lawsuit to include the bill in its argument against the state.

State Inspections of Monorail System

The latest action from DeSantis is signing a bill that Disney calls “precision-engineered”. HB 1305 is a bill that says the Florida Department of Transportation shall create safety standards and inspections of the Walt Disney World monorail system.

Governor DeSantis Signs Bill for State Takeover of Walt Disney World Monorail Inspections

Florida Governor Ron DeSantis has signed a bill that would require the Florida Department of Transportation to take over monorail inspections


To Invest or Not?

In a recent earnings call this spring, Disney CEO Bob Iger spoke out to “set the record straight” on Disney’s position on the ongoing fight with DeSantis and Florida Republicans. At the end of his long answer, which you can read in its entirety below, Iger simply asks “does the state want us to invest more, employ more people and pay more taxes or not?”

Disney CEO Bob Iger: DeSantis’ Retaliation Is Not About Special Privileges, Does The State Want Us To Invest More or Not?

Disney CEO Bob Iger spoke out about the ongoing battle between Walt Disney World and Florida Governor Ron DeSantis


As always, keep checking back with us here at BlogMickey.com as we continue to bring you the latest news, photos, and info from around the Disney Parks!

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