Disney, the entertainment giant and the largest employer in Florida, is locked in a fierce legal battle with the state’s governor, Ron DeSantis, over a controversial law that limits public school instruction on gender identity and sexual orientation. The dispute has escalated into a series of political and economic moves that could have far-reaching consequences for both parties. Here is what you need to know about the ongoing feud between Disney and DeSantis.
How it all started?
The conflict began in March 2022, when Disney publicly criticized DeSantis for signing the Parent Rights in Education Act, also known as the “Don’t Say Gay” law. The law prohibits public schools from teaching students about gender identity and sexual orientation until the fourth grade, and requires parental consent for any instruction on these topics beyond that grade level. The law also allows parents to opt out their children from any lessons that they deem objectionable or inappropriate.
Disney, which has a long history of supporting LGBTQ rights and diversity, denounced the law as discriminatory and harmful to its employees and customers. The company also faced pressure from its workers, who staged protests against the new legislation. Disney’s then-CEO Bob Chapek issued a statement saying that Disney was “opposed to the bill from the outset” and that it had tried to work behind the scenes to prevent its passage.
How DeSantis retaliated?
DeSantis, who is widely seen as a potential Republican presidential candidate in 2024, did not take kindly to Disney’s criticism. He accused the company of trying to impose its “woke” agenda on Florida’s children and parents, and of being hypocritical for doing business with China, where human rights abuses are rampant. He also vowed to take action against Disney for challenging his authority.
In April 2022, DeSantis asked the state legislature to revoke Disney’s special privileges that allow it to govern its own 40-square-mile property in central Florida, known as the Reedy Creek Improvement District. The district, which encompasses Walt Disney World and other related enterprises, was created in 1967 by an act of the Florida legislature. It grants Disney the power to levy taxes, issue bonds, provide public services, and bypass county regulations on land use and development.
DeSantis signed a bill that stripped Disney of its self-governing powers on April 22, 2022. The bill was supposed to take effect on June 1, 2023. However, because the district held $1 billion in bond debt that taxpayers would have been liable for, a special legislative session in February 2023 allowed Disney to keep its tax district status, but removed its ability to choose who can sit on its board. Instead, DeSantis gained the power to appoint five members to the board that oversees Disney’s government services.
How Disney fought back?
Disney did not take DeSantis’ actions lying down. The company filed a lawsuit against DeSantis and the board members on April 26, 2023, in federal court. The lawsuit claims that DeSantis violated Disney’s constitutional rights to free speech and due process by punishing it for expressing its opposition to the “Don’t Say Gay” law. The lawsuit also argues that DeSantis’ interference with Disney’s self-government is unlawful and arbitrary.
Disney also invoked a provision in its original agreement with the state that preserves its interests in the land until “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”. This provision effectively extends Disney’s control over its property until at least 2060.
In addition, Disney announced on May 20, 2023, that it would cancel its plan to build a $1 billion office complex near Orlando that would have brought 2,000 jobs to the area. The company cited DeSantis’ hostility and uncertainty as reasons for scrapping the project.
What are the implications?
The legal battle between Disney and DeSantis has drawn national attention and sparked heated debates over issues such as education, LGBTQ rights, corporate power, and state sovereignty. The outcome of the case could have significant implications for both parties’ reputations, finances, and political ambitions.
For Disney, losing the case could mean losing its autonomy and influence over its most valuable asset: Walt Disney World. The theme park is not only a major source of revenue for the company, but also a symbol of its brand identity and cultural impact. If DeSantis succeeds in taking over Disney’s government services, he could impose new rules and restrictions on Disney’s operations, such as mandating masks or vaccines for visitors or employees, or banning certain content or characters from its attractions.
For DeSantis, winning the case could boost his popularity among his conservative base and enhance his credentials as a leader who stands up to big corporations and defends parental rights. However, it could also alienate moderate voters and hurt Florida’s economy by driving away tourists and investors who value Disney’s presence and values. Moreover, it could invite legal challenges from other companies or entities that have similar arrangements with the state, such as Universal Studios or the University of Florida.
The case is expected to drag on for months, if not years, as both sides are likely to appeal any unfavorable rulings. In the meantime, the feud between Disney and DeSantis shows no signs of cooling down, and could escalate further as the 2024 presidential election approaches.
