It would have been unthinkable even six months ago…
The Florida Senate has voted 23-16 to revoke The Walt Disney Company’s one-of-a-kind self-governance powers* for The Walt Disney World Resort in Central Florida by dissolving the Reedy Creek Improvement District. The vote means the House will now take up the legislation. If it passes the House it would go to Governor DeSantis for possible codification into law. The cost to The Walt Disney Company would be astronomical. The political decisions are following a series of political determinations Disney made in which the company officially condemned legislation in Florida that prohibits classroom instruction on sexual orientation and gender fluidity for grades K-3. Disney further affirmed they would take legal action against the State of Florida for the law and affirmed the would work to stop legislation in Texas that prohibits chemical castration, mastectomies and other sex change actions on juveniles.
NEWS: Florida Senate Votes to Dissolve Reedy Creek Improvement District in Disney World https://t.co/kwbSIRXmjJ pic.twitter.com/t8hNtjOhuL
— AllEars.Net (@AllEarsNet) April 20, 2022
Some readers may believe that Disney has chosen the ethical path in their decision. Other readers will believe Disney’s communicated values are unethical. Both sides will likely have to agree that the cost incurred upon Disney by these decisions, and the Florida government’s response to it, is potentially one of the greatest in the history of the company. If we assume that Disney would operate Walt Disney World for another hundred years, the financial difference in doing so under their own governance versus under the taxation, legislation, zoning, and prohibitions of a different local government would have to be in the many billions of dollars. If you consider possible inflation over the next hundred years, it might be even higher.
This is one of the most significant financial and operational costs Disney could face. If the Board of Directors are not scheduled for emergency meetings it would be a tremendous shock. Disney could even face potential lawsuits from shareholders should they not do everything in their power to avoid Florida removing their one-of-a-kind special status no other theme park enjoys.
WDW Pro will have an article out later today analyzing the situation and what Disney might be doing behind the scenes. For more on the breaking news about Disney and Walt Disney World, stick with That Park Place for all the latest.
Update 2:02 PM EST, 2/20/22:
* – While we do not take any negative position against WDWNT.com, we do not believe the editorialization in the cited article is an accurate depiction of the facts in this situation. The citation remains as a means to show the Senate vote but the portrayal of Disney and Florida, their intentions and motivations, as well as potential ramifications are not endorsed by this article or That Park Place.
