The 50-year relationship between Walt Disney World and Florida had been one of mutual success. Disney largely created the tourism industry that the central Florida region now thrives on. But a battle between Disney and Florida’s Governor Ron DeSantis has now moved from being a simple war of words to legal challenges. First Disney sued Florida, then Florida sued Disney. But the mouse now wants to see Florida’s countersuit tossed out of court.
The battle between Disney and Florida surrounds what used to be called the Reedy Creek Improvement District, a special district created by Florida in the 1960s to help manage the municipal affairs of Walt Disney World. The district has now been replaced by a new one with a board appointed by Governor DeSantis. However, the new board discovered last month that prior to the new board taking over, Disney and the Reedy Creek board agreed to a land deal that gave the theme park direct control over much of the district’s land.
This deal was the focus of the lawsuit filed against Disney World, as the Central Florida Tourism Oversight District (the new Reedy Creek) sought to have the deal nullified. However, Governor Ron DeSantis also recently signed a new law that did exactly the same thing, and so CNBC reports that Disney is now arguing to the court that since the deal is currently dead by state law, the lawsuit has no standing and should be tossed out. Basically, nothing would change with the outcome, regardless of who ended up winning.
Disney is asking a court to reverse a series of decisions taken against Disney World by Florida, including the ending of the previously mentioned land deal. From the ending of the Reedy Creek Improvement District to a recent transportation law that will require inspections of the Monorail, Florida has passed several laws that are specifically targeted at Disney and do not impact any of the many other special districts in the state.
During the most recent earnings call, Disney CEO Bob Iger spoke about the litigation, saying that while the Reedy Creek Improvement District gave the company some special benefits, the state also benefited from Disney in the form of billions in tax dollars, above minimum wage employment, and the millions of tourists who come to Florida to spend money each year. Iger suggested that Disney's investments could be made elsewhere if Florida doesn't want them.
Disney’s lawsuit focuses not only on the actions taken by the government but the language used by many, including Governor Ron DeSantis, which Disney claims shows a specific plan of retaliation. Last year Disney released a statement condemning Florida’s Parental Rights in Education Act, called “Don’t Say Gay” by detractors. Disney’s suit contains numerous direct quotes and was even recently updated to include an epigram trolling Ron DeSantis when he made even more statements that Disney says show retaliation.
Even if a judge agrees with Disney and tosses the countersuit, Disney will still have to prevail in its own suit for any substantial change to take place. This battle is far from over.
