Florida Gov. Ron DeSantis, a likely contender for the 2024 Republican presidential nomination, has made Walt Disney Corporate Enemy No. 1 in his war against so-called woke culture.
That's a smart move because Disney has a lot of openly liberal policies and has embraced diversity, equity, and inclusion, which DeSantis has painted as some sort of sinister plan to ruin life as Republicans know it.
The governor, of course, is engaging in political theater. While Walt Disney (DIS) can't just pack up its four theme parks, two water parks, shopping district, and countless hotels and move them to a more liberal location, it can opt not to invest more in its Florida operations.
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Disney World makes for a good DeSantis foil, but the governor isn't trying to get the Mouse House to leave his state. He just uses the company as an example of all the things he's against in his crusade to win votes and maybe the presidency.
As part of his battle with Disney, DeSantis used the Republican-controlled Florida House of Representatives to take over what was called the Reedy Creek Improvement District. This structure, signed into law in 1967, effectively gave Disney governance over the land and development.
The new manager of the land on which Disney World sits -- and a bit of the surrounding area -- is now called the Central Florida Tourism Oversight District, and its board contains handpicked DeSantis cronies.
Disney didn't really fight DeSantis's takeover of the Reedy Creek Improvement District -- and that may be because the Mouse House left the governor a big surprise.
Image source: Joe Raedle/Getty Images
Disney Left Behind a Poison Pill
While Disney gave up its self-governing status without a fight, it did make some key moves before DeSantis's cronies took over.
"A February 8th Development Agreement between Disney Parks & Resorts and the Reedy Creek Improvement District sets a plan for the next 30+ years," BlogMickey.com reported. "
"Essentially, Disney was able to ink a plan with the RCID Board at the time that would neutralize any plans that the new Board would put in place. This has been described by industry watchers as a sort of 'insurance policy' against an activist Board, and the new Board members are not happy about it."
That move may have been Disney realizing that it would be easier to fight to keep that long-term agreement in place than it would be to battle over DeSantis's efforts to take over the former Reedy Creek.
“I cannot tell you the level of my disappointment in Disney, I thought so much better of them," board member Brian Aungst Jr. said. "This essentially makes Disney the government. This board loses, for practical purposes, the majority of its ability to do anything beyond maintain the roads and maintain basic infrastructure."
DeSantis's Allies Gear Up for Disney War
In reality, DeSantis has tried to make Disney the government when it pays for things -- the company still pays for fire, water, and all other services -- but not when it comes to making decisions. DeSantis essentially tried to assert his will without paying any of the bills, and Disney appears to have outsmarted him.
That's not something DeSantis, who famously does not like to be corrected, will be happy to hear. His handpicked board members, however, are moving to take on Disney. The Central Florida Tourism Oversight District has taken the first steps to retain legal counsel for a potential battle with the Mouse House.
"People (and a board member) seem interested in the 'King Charles' clause in the RCID covenants, and so was I when I first saw it, but apparently that is an actual thing in contracts," WESH Orlando reporter Bob Hazen tweeted, speaking about the agreement Disney made under the previous board.
"The agreement includes a royal clause that extends its term limit for years to come. The contract will be valid '21 years after the death of the last survivor of the descendants of King Charles III, King of England, living as of the date of this declaration,'" Quartz reported.
Essentially, the agreement gives Disney continued control over development at its Central Florida properties. DeSantis's board intends to fight the matter in court, although Aungst, the member of the new board, did say he hoped Disney would be willing to work in a “very collaborative manner.”
