In March 2024, Florida Governor Ron DeSantis and The Walt Disney Firm settled their two-year-old authorized battle, returning management over future growth of Disney properties within the Orlando, Florida space to the state.1[1]Mike Schneider, Settlement reached in lawsuit between Disney and Florida Gov. Ron DeSantis’ allies, AP NEWS (Mar. 27, 2024) https://apnews.com/article/disney-florida-ron-desantis-settlement-91040178ad4708939e621dd57bc5e494. Disney is without doubt one of the largest media manufacturers on this planet, proudly owning and working six theme parks worldwide and greater than fifteen completely different tv networks and streaming companies. Its largest theme park, Walt Disney World in Orlando, attracts thousands and thousands of households from all around the world to the Sunshine State and brings in billions of {dollars} in income yearly.2[2]In FY 2022, Disney generated $40.3 billion in financial exercise in Florida. In essence, $1 out of each $36 spent in Florida “immediately or not directly got here from a Florida Disney expertise.” Juliana Kaplan, It’s a small world with a big effect: Disney generated over $40 billion for Florida in fiscal yr 2022, BUS. INSIDER (Nov. 16, 2023) https://shorturl.at/depKL. Regardless of this, DeSantis and Disney have been at odds over Florida legal guidelines that granted particular governing rights to Disney in working its Florida parks.
How It All Began
In 1967, previous to Walt Disney World’s 1971 opening, Florida created the Reedy Creek Enchancment District (“RCID”) as a singular tax entity that gave Disney the facility to function the district like its personal city.3[3]Historical past, CENT. FL. TOURISM OVERSIGHT DIST., https://www.oversightdistrict.org/about/historical past/ (final visited Mar. 12, 2024). The RCID granted a board of supervisors the facility to supervise using all land within the district – whether or not owned by Disney or different property house owners – and to offer important companies like hearth, medical, water programs, and roadway upkeep.4[4]Id. Below the RCID constitution, Disney was capable of stack the Board with members who supported Disney’s pursuits. This technique labored for each Disney and Florida till 2022, when Governor DeSantis and Disney’s then-CEO, Bob Chapek, conflicted over the “Parental Rights in Training Act.”
“Don’t Say Homosexual”
The “Parental Rights in Training Act,” infamously dubbed the “Don’t Say Homosexual” invoice, protects the rights of fogeys to make choices concerning their kids’s training and prohibits public faculty instruction on sexual orientation or gender id for college students in kindergarten by way of third grade.5[5]GOVERNOR RON DESANTIS SIGNS HISTORIC BILL TO PROTECT PARENTAL RIGHTS IN EDUCATION, FL Gov., https://www.flgov.com/2022/03/28/governor-ron-desantis-signs-historic-bill-to-protect-parental-rights-in-education (final visited Might 21, 2024). Whereas the laws was pending, a number of corporations “with a serious presence in Florida” opposed the Act as anti-LGBTQ and added their names to a Human Rights Marketing campaign and Freedom for all People Training Fund petition.6[6]Companies like Uber, Unilever, Apple, Google, Warner Music Group, and Amazon signed this petition earlier than the Don’t Say Homosexual invoice, however IHG Lodges and United Airways signed it instantly after. Annika Kim Constantino, Companies oppose Florida’s ‘Don’t Say Homosexual’ ban on dialogue of LGBTQ points in public colleges, CNBC (Mar. 29, 2022) https://www.cnbc.com/2022/03/29/businesses-oppose-floridas-dont-say-gay-bill-banning-talk-of-lgbtq-issues-in-public-schools.html. Initially, Disney didn’t make an announcement concerning the Act nor did it signal the petition. Chapek finally spoke out towards the Act after Disney’s preliminary silence on the matter raised issues from the media, followers, and workers.7[7]Anthony Izaguirre, ‘Don’t Say Homosexual’ invoice signed by Florida Gov. Ron DeSantis, AP NEWS (Mar. 28, 2022) https://apnews.com/article/florida-dont-say-gay-law-signed-56aee61f075a12663f25990c7b31624d. Chapek additionally confirmed that the corporate can be pausing its political donations within the State of Florida—a sizeable loss.8[8]Id.
Legislative Response to Disney’s Criticism of the Parental Rights in Training Act
In February 2023, following Disney’s public stance towards the Parental Rights in Training Act, Republican-led Florida authorities handed a regulation dissolving the RCID, stripping Disney of the governing energy it held over the district for greater than fifty years.9[9]Brookes Barnes, DeSantis Declares Victory as Disney Is Stripped of Some 56-Yr-Previous Perks, THE N.Y. TIMES (Feb. 10, 2023) https://www.nytimes.com/2023/02/10/enterprise/disney-world-florida-tax-board.html. As a substitute, the regulation gave Governor DeSantis the facility to nominate the supervisory board of the RCID, renamed the Central Florida Tourism Oversight District (“CFTOD”).10[10]Nate Beck, Disney Loses Free Speech Swimsuit In opposition to DeSantis, LAW360 (Jan. 31, 2024) https://www.law360.com/articles/1792534/disney-loses-free-speech-suit-against-desantis. The CFTOD is now managed by DeSantis’ political appointees who vote on growth and development tasks all through the district, together with Disney World.11[11]Id. In anticipation of this legislative reform, the previous RCID authorized a 30-year resort growth plan and adopted restrictive covenants that might shift management of future development tasks to the Disney firm reasonably than the RCID.12[12]David Minsky, Fla. Board Urges Court docket To Void Disney ‘Backroom’ Land Offers, LAW360 (Aug. 17, 2023) https://www.law360.com/articles/1712110?scroll=1&associated=1. When the DeSantis-appointed board took management of the CFTOD, they challenged these plans.13[13]Id.
The Feud Turns to the Courts
The battle shifted to the courts with Disney submitting a lawsuit in April 2023 that claimed that the Governor and his allies violated the corporate’s free speech rights by enacting the CFTOD regulation in retaliation for the corporate’s criticism of the Parental Rights in Training Act.14[14]Grievance at 1, Walt Disney Parks & Resorts U.S., Inc. v. DeSantis, No. 4:23-CV-00163-MW-MAF, 2023 (N.D. Fla. April 26, 2023). The district courtroom dismissed the lawsuit on the pleadings, holding that the CFTOD regulation is facially constitutional as a result of a state legislature is free to find out the construction of particular enterprise districts. Accordingly, the courtroom dominated the regulation can’t be challenged on First Modification grounds by claiming the lawmakers had improper motives.15[15]Order Granting Movement to Dismiss at 4, Walt Disney Parks & Resorts U.S., Inc. v. DeSantis, No. 4:23-CV-163-AW-MJF, 2024 WL 442546 (N.D. Fla. Jan. 31, 2024). Disney appealed the dismissal to the Eleventh Circuit.16[16]Plaintiff’s Discover of Attraction, Walt Disney Parks & Resorts U.S., Inc. v. DeSantis, No. 4:23-CV-00163-AW-MJF, (N.D. Fla. Feb. 1, 2024).
Individually, the Governor and the CFTOD board sued Disney in state courtroom alleging that the event plans handed by the RCID board in anticipation of legislative reform violated the Florida Structure and guidelines that require public discover and alternative to touch upon such workouts of presidency authority.17[17]Central Florida Tourism Oversight District v. Walt Disney Parks and Resorts U.S., Inc., No. 2023-CA-011818, (Fla. Might 1. 2023) As famous, that lawsuit was settled final month in an settlement that units the stage for negotiations between Disney and the CFTOD board for a brand new Disney resort growth plan and requires Disney to place its federal enchantment on maintain.
Disney has agreed to invalidate any last-minute RCID actions, together with the restrictive covenants and the plan to shift management of Disney World development to the corporate reasonably than the board.18[18]David Minsky, Disney, Florida District Attain Settlement On Land Use Swimsuit, LAW360
https://www.law360.com/articles/1818490/disney-florida-district-reach-agreement-on-land-use-suit.
It’s but to be seen whether or not negotiations on future Disney World growth will likely be profitable, or if the Disney-DeSantis feud will reignite.
Written by: Emily Osgood
Emily is a 2026 J.D. Candidate at Brooklyn Regulation Faculty.
[1] Mike Schneider, Settlement reached in lawsuit between Disney and Florida Gov. Ron DeSantis’ allies, AP Information (Mar. 27, 2024) https://apnews.com/article/disney-florida-ron-desantis-settlement-91040178ad4708939e621dd57bc5e494
[2] In FY 2022, Disney generated $40.3 billion in financial exercise in Florida. In essence, $1 out of each $36 spent in Florida “immediately or not directly got here from a Florida Disney expertise.” Juliana Kaplan, It’s a small world with a big effect: Disney generated over $40 billion for Florida in fiscal yr 2022, Bus. Insider (Nov. 16, 2023) https://shorturl.at/depKL.
[3] Historical past, Cent. Fl. Tourism Oversight Dist., https://www.oversightdistrict.org/about/historical past/ (final visited Mar. 12, 2024).
[4] Id.
[5] GOVERNOR RON DESANTIS SIGNS HISTORIC BILL TO PROTECT PARENTAL RIGHTS IN EDUCATION, FL Gov., https://www.flgov.com/2022/03/28/governor-ron-desantis-signs-historic-bill-to-protect-parental-rights-in-education (final visited Might 21, 2024).
[6] Companies like Uber, Unilever, Apple, Google, Warner Music Group, and Amazon signed this petition earlier than the Don’t Say Homosexual invoice, however IHG Lodges and United Airways signed it instantly after. Annika Kim Constantino, Companies oppose Florida’s ‘Don’t Say Homosexual’ ban on dialogue of LGBTQ points in public colleges, CNBC (Mar. 29, 2022) https://www.cnbc.com/2022/03/29/businesses-oppose-floridas-dont-say-gay-bill-banning-talk-of-lgbtq-issues-in-public-schools.html.
[7] Anthony Izaguirre, ‘Don’t Say Homosexual’ invoice signed by Florida Gov. Ron DeSantis, AP Information (Mar. 28, 2022) https://apnews.com/article/florida-dont-say-gay-law-signed-56aee61f075a12663f25990c7b31624d.
[8] Id.
[9] Brookes Barnes, DeSantis Declares Victory as Disney Is Stripped of Some 56-Yr-Previous Perks, The N.Y. Instances (Feb. 10, 2023) https://www.nytimes.com/2023/02/10/enterprise/disney-world-florida-tax-board.html.
[10] Nate Beck, Disney Loses Free Speech Swimsuit In opposition to DeSantis, Law360 (Jan. 31, 2024) https://www.law360.com/articles/1792534/disney-loses-free-speech-suit-against-desantis.
[11] Id.
[12] David Minsky, Fla. Board Urges Court docket To Void Disney ‘Backroom’ Land Offers, LAW360 (Aug. 17, 2023) https://www.law360.com/articles/1712110?scroll=1&associated=1.
[13] Id.
[14] Grievance at 1, Walt Disney Parks & Resorts U.S., Inc. v. DeSantis, No. 4:23-CV-00163-MW-MAF, 2023 (N.D. Fla. April 26, 2023).
[15] Order Granting Movement to Dismiss at 4, Walt Disney Parks & Resorts U.S., Inc. v. DeSantis, No. 4:23-CV-163-AW-MJF, 2024 WL 442546 (N.D. Fla. Jan. 31, 2024).
[16] Plaintiff’s Discover of Attraction, Walt Disney Parks & Resorts U.S., Inc. v. DeSantis, No. 4:23-CV-00163-AW-MJF, (N.D. Fla. Feb. 1, 2024).
[17] Central Florida Tourism Oversight District v. Walt Disney Parks and Resorts U.S., Inc., No. 2023-CA-011818, (Fla. Might 1. 2023)
[18] David Minsky, Disney, Florida District Attain Settlement On Land Use Swimsuit, LAW360 https://www.law360.com/articles/1818490/disney-florida-district-reach-agreement-on-land-use-suit.
