Florida Governor Ron DeSantis has signed a bill that grants a newly established board significant authority to nullify previously signed development agreements with Disney. The Republican-controlled legislature gave its approval to the bill, voting along party lines.
Appointed by Governor DeSantis himself, the newly formed body, known as the Central Tourism Oversight District, now wields the power to void agreements made up to three months before its inception. The need for this legislation was attributed by DeSantis to Disney’s perceived arrogance in trying to bypass state laws by subcontracting.
The creation of the Central Tourism Oversight District comes as a replacement for the Reedy Creek Improvement District, which had long been under Disney’s control. With its establishment back in February, the new board took over the responsibility of overseeing development around the renowned Walt Disney World.
Tensions between Disney and Governor DeSantis have been simmering for some time, reaching a boiling point when Disney openly criticized a state law concerning the teaching of sexuality and gender identity to young children in classrooms. The Governor, in turn, has been publicly vocal about his disapproval of what he referred to as “woke Disney,” labeling the corporation as liberal.
Before DeSantis’ appointees took office on the new board, Disney made modifications to the special tax district agreement, aiming to limit the actions of the recently empowered body for decades to come. However, such maneuvers failed to deter the oversight authority, which eventually deemed Disney’s potential expansion plans for Disney World as violations of state law and thus, proceeded to nullify the contract.
In response to this move, Disney filed a federal lawsuit against Governor DeSantis, alleging that he violated the company’s free speech rights by exploiting government authority. The legal battle is sure to be closely watched, as it pits the powerful entertainment giant against the state’s highest office.
Meanwhile, the board of the Central Florida Tourism Oversight District has also filed a lawsuit in the state court, seeking to invalidate what they call “backroom deals” that favor Disney. The situation is undoubtedly complex, with legal and political ramifications that could extend beyond the borders of Florida.
Interestingly, despite these legal and political clashes, Disney’s stock has been soaring, gaining an impressive 16% so far this year, outpacing the broader S&P 500’s 8% increase. Investors appear to be confident in the company’s ability to weather the storm and maintain its position as a leading player in the entertainment industry.