Iger had a good laugh at Disney, but the state was wrong: When Florida took away power over Disney World and what it hasn’t
The shareholder meeting Monday was the first time Iger spoke out against Florida governorRon DeSantis, who had retaliated against Disney.
Some powers that Disney had over the land surrounding Disney World have been taken away by the state of Florida. Florida’s move came after the company objected to legislation passed last year to limit discussions of LGBTQ issues in Florida schools, a bill that opponents referred to as the “Don’t Say Gay” law.
Iger responded that his job of what’s best for the company includes doing what’s best for its employees, allowing them to flourish. Sometimes it can weigh in on controversial issues, but he doesn’t think it should do so. He said that he is sensitive to criticism, including by some of the shareholders at the meeting, that the company is “creating agenda-driven content,” but he denied that is the case.
“Our point on this is that any action that thwarts those efforts simply to retaliate for a position the company took sounds not just anti-business, but it sounds anti-Florida,” he said.
After the fight over the gay bill, the state of Florida tried to destroy the district but became aware that it would leave central Florida with more than $1 Billion in liability for bond issues. Legislation passed earlier this year gave the state the power to appoint board members.
The new board revealed last week that the powers of the re-named Orange County Tourism Oversight district had been stripped away before the law passed, as per an agreement with Reedy Creek. That set off a new round of criticism by state officials, including DeSantis, who has been a vocal critic of Disney’s actions.
The Reedy Creek Improvement District board was accused in a letter of conspiring and self-dealing arrangements, and ethical violations, for blocking his attempts to take over the board. The office of DeSantis said that legislative options are back on the table as his administration seeks to wrest back power and possibly retaliate against Disney.
Iger said that they love the state of Florida. “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 jobs and community service, taxes, tourism, of course. We’ve also always appreciated what the state has done for us. It has been a two-way street.
Disney plans to invest $17 billion over the next decade, which Iger said will create thousands of new jobs, attract more people to the state, and generate more taxes.
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“While I know we’re never going to please everybody all the time… I want parents to be able to trust the content we’re creating for their children, and we’re committed to creating age-appropriate content for family audiences,” he said.
As a potential presidential contender in the year 20, the standoff burnished his reputation on the right as a shrewd leader who will not be easily pushed around by one of the state’s largest employers.
But now, in round two, DeSantis, age 44, is going up against longtime Disney boss Bob Iger, a Hollywood power player with decades more experience on the national stage. And Iger, at age 72, isn’t pulling any punches.
Iger retired in 2020 and came back to the helm three years later, so there isn’t a lot of time to mess around. He’s given himself a two-year deadline to line up a successor, and he’s got to do that all while trying to reinvigorate a 100-year-old sprawling media conglomerate.
In short, Chapek fumbled the ball when he came at DeSantis to criticize Republican legislation that opponents derided as “Don’t Say Gay” because it restricts classroom instruction on issues relating to sexual orientation and gender identity.
Even after facing backlash from his own employees that work in Florida, Chapek spoke out about the legislation. His wishy-washy approach didn’t sit well on either side of the argument.
That effort hit a roadblock, though, after it emerged that the region’s towns and counties would be on the hook for $1 billion of Reedy Creek’s debt obligations.
Legislation was pushed to change Reedy Creek to the Central Florida Tourism Oversight District, which would be overseen by a board.
Disney lawyers quietly pushed through changes to the board that stripped the incoming board of power.
The Disney-affiliated members of the board signed their powers to the company, in order to prevent the land from being turned over until they were satisfied that their will hadn’t been violated. That’s roughly 100 years, assuming one of the King’s grandchildren lives to age 80.)
“This essentially makes Disney the government,” said Ron Peri, a DeSantis pick for the new board, last week. The majority of the board’s ability to do anything beyond maintaining roads and basic infrastructure is lost for practical purposes.
Iger announced last week that Disney would lay off 7,000 people. He also fired Ike Perlmutter, a Marvel executive who had been a thorn in Disney’s side. Another Marvel executive, Victoria Alonso, was also fired after reportedly violating her contract.
Source: https://www.cnn.com/2023/04/04/business/nightcap-disney-feud-iger-desantis/index.html
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