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The Street
The Street
Daniel Kline

Walt Disney, Ron DeSantis Have a New Conflict Over Mediation

Florida Governor Ron DeSantis wants to make Walt Disney the big bad in his story of being a hero that stands up to "woke" businesses. In this narrative, Disney wants special privileges for its theme parks while it promotes left-wing causes and advances what DeSantis wants his supporters to consider radical agendas.

That's a fundraising tale designed to make DeSantis appear like he's fighting for the values of his supporters against a corporation that's both out of touch and one which wants free stuff.

DON'T MISS: Disney World’s Slow July 4th Leads to Whether DeSantis Caused It

In reality, Walt Disney (DIS) -) has corporate policies on inclusion, diversity, and supporting the LGBTQ+ community that DeSantis does not agree with. The company, or at least its former CEO Bob Chapek, also spoke out against DeSantis' so-called "Don't Say Gay" legislation.

Taking that stand, which current CEO Bob Iger has backed up, made Disney DeSantis' top villain. Never mind that many other companies embrace what the Republican presidential candidate would call "woke" policies, Disney has been vocal about specific DeSantis actions, and that has seemingly made the company his proxy for every company supporting values that he does not agree with.

These disputes led to DeSantis dissolving the former Reedy Creek Improvement District (RCID), essentially the government for the land Disney World sits on, and replacing it with his own hand-picked board.

Now, a lawsuit regarding those actions is on its way to Federal court, and Disney and DeSantis, not surprisingly, disagree as to how it should be handled.

Disney World Is Florida's largest single-site employer.

Image source: Joe Raedle/Getty Images

Disney And DeSantis Favor Different Approaches  

A joint report in advance of the lawsuit from the Disney and DeSantis camps has revealed two things. First, DeSantis wants the case pushed back to after the presidential elections.

That makes sense because it would allow him to look like he's still fighting Disney to his supporters without risking a court loss. Once the election is over, he would either be president or have four years to lick his wounds, making the court's decision less relevant to his political future.

In addition, Disney has asked for early mediation and DeSantis has rejected that idea.

"As part of the report, Disney Parks said that 'early mediation may be beneficial in this case' and suggested a mediation deadline of November 1, 2023. DeSantis’ team responded by stating that they 'do not believe mediation would be productive in this case at this time," BlogMickey Reported

Iger has openly been willing to meet with DeSantis in order to work out what he appears willing to see as a political dispute. He has not, however, been willing to let DeSantis push his company around.

Disney Has Some Leverage Over DeSantis

Disney cannot pack up Disney World and leave Florida. Even if that was somehow possible, the Orlando area has unique infrastructure which supports the company's four theme parks, two water parks, a massive shopping district, and dozens of hotels.

What Iger can opt to do, however, is adjust how much money the company invests in Florida going forward. Disney has already dropped a $1 billion plan to build a new headquarters near Disney World that would have brought roughly 2,000 high-paying jobs from California to Florida.

DeSantis has publicly questioned whether the company was ever truly committed to that plan.

Iger spoke very directly to DeSantis during Disney's second-quarter earnings call.

"We have a huge opportunity to continue to invest in Florida. I noted that our plans are to invest $17 billion over the next 10 years, which is what the state should want us to do," he shared.

The Disney boss put his cards clearly on the table.

"We operate responsibly. We pay our fair share of taxes. We employ thousands of people and by the way, we pay them above the minimum wage -- substantially above the minimum wage dictated by the state of Florida. We also provide them with great benefits and free education, so I’m gonna finish what is obviously kind of a long answer by asking one question. Does the state want us to invest more, employ more people and pay more taxes or not?"

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