Disney World Fifth Gate or Not: Does Anyone Really Know?

 by Ray Keating

News/Commentary

DisneyBizJournal.com

June 5, 2024

 

A unanimous vote on June 5 by the Central Florida Tourism Oversight District board gave an initial thumbs-up to a proposed $17-billion Walt Disney World expansion plan. Disney fans want to believe that this will mean the opening of a fifth park – or fifth gate – in Disney World, though Disney has made no such declaration.

Final approval for the development plan requires a second vote on June 12, according to a report from the Orlando Sentinel.

 

Disney hasn’t served up any real details on their spending plans, with Woody Rodriguez, director of external affairs for Disney Parks, Experiences and Products, being quoted, “The development agreement will enable us to continue to invest significantly in the district.” In Disney’s most recent earnings call, CEO Bob Iger danced around the question.

 

Speculation about a fifth park lies with the fact that Universal Orlando’s Epic Universe opens in 2025, and many assume that Disney will need to respond in some way. According to the Sentinel report, the agreement covers 17,300 acres owned by Disney, and “allows a maximum of five minor theme parks, such as a water park, nearly 1.3 million square feet of office space, 1.7 million square feet of restaurant/retail space and 53,467 hotel rooms.”

 

This deal, of course, represents quite a shift in the relationship between Florida Governor Ron DeSantis and Disney – from one featuring politics, confrontation, a state takeover of the Reedy Creek Improvement District, and lawsuits, to one of economic cooperation. According to a Business Insider article published at Yahoo News, Stephanie Kopelousos, administrator for the Central Florida Tourism Oversight District, said, “With Walt Disney World's substantial investments, we anticipate economic growth, job creation, and support for local businesses, alongside environmental stewardship and workforce housing initiatives, benefiting Central Florida's community.”

 

Dennis Speigel, CEO and founder of International Theme Park Services, was quoted in another report, “What you’ve seen is a huge kiss and make up between Florida and Disney.” Indeed, about Disney’s expansion plans, DeSantis said, “It’s going to be a huge game changer for this region. I got to think Disney would have an interest in maybe offering another one. The district will be ready to negotiate something to be able to be good for the state of Florida, be good for jobs, be good for all those things.”

 

Golly, it’s amazing how things can change after a governor drops out of the race for president.

 

Speigel is one of the industry people who sees a fifth gate coming, declaring, “The fifth gate will be the most highly technologically driven attraction park in the world. And it has to be because it has to eclipse Universal Epic Universe.” He predicts a tab of $5 billion to $6 billion for such an endeavor. Other watchers, however, see Disney expanding current parks rather than opening a new one.

 

At this point, only Disney knows if a fifth gate will be opened at Disney World, and it’s not even clear that they have settled on anything just yet. 

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?

 

The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.

 

Never miss any new book by Ray Keating by joining the Pastor Stephen Grant Fellowship with Ray Keating at

https://www.patreon.com/pastorstephengrantfellowship.

 

Various books by Ray Keating…

 

• The Pastor Stephen Grant thrillers and mysteries. There are 19 books in the series now.

 

• Cathedral: An Alliance of Saint Michael Novel is at Amazon. 

 

• Order The Weekly Economist III: Another 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist, and The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.

 

• Signed editions of Ray’s books are at www.raykeatingbooksandmore.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Disney and DeSantis: Politics and Business as Usual

 by Ray Keating

Commentary

DisneyBizJournal.com

March 28, 2024

 

The announcement that the Walt Disney Company and Florida Governor Ron DeSantis have agreed to move on from their dueling lawsuits is a case of politics and business as usual.

 

Disney has a major shareholder meeting coming on April 3, and, no doubt, wanted this controversy to go away. Meanwhile, since DeSantis’s attempt to become the Republican presidential candidate for 2024 crashed and burned, the governor had little reason to drag on his political show of attacking Disney to gin up the GOP base.

So, it was time to move on for all parties. In fact, new development deals between Disney and Central Florida Tourism Oversight District, which signed off on the settlement with the House of Mouse, will be hammered out.

 

CNN reported:

 

A trial was set to begin in June. But now, Disney holds that prior agreements are null and void and intends to negotiate a new deal that likely would be beneficial to Disney’s development plans in the area.

 

Separately, in January a federal judge dismissed a lawsuit Disney filed accusing DeSantis of weaponizing his political power to punish the company for exercising its right to free speech. Disney quickly filed an appeal, but it will now put that on hold “pending negotiations” on a new development deal, among other matters, with the district.

 

Additionally, both parties agreed to drop the various state-wide lawsuits they’ve filed against one another. Instead, both agreed to resolve their differences outside of the courtroom in way that would not require either to admit any fault or liability, according to text of the settlement.

 

That’s nice.

 

Of course, serious questions are left on the table. For example, does it make sense for a business to weigh in on political issues that have nothing to do with its actual business? Can politicians get away with abusing the powers of government to attack particular businesses with whom they disagree on an issue?

 

Anyone thinking that a company like Disney would stand on principled ground regarding free speech and fighting government overreach fails to understand that publicly traded businesses will go only so far as management believes it will benefit the company. (That is, unless a company is captured by a leftist social agenda, and then management tends to blindly step into politics even if it creates risks and uncertainties for the bottom line.) None of this should surprise anyone.

 

Meanwhile, anyone thinking that politicians today take stands based on principle fails to understand politics as it particularly has further degraded over the past decade-and-a-half or so. On both sides of the aisle, few, if any, serious thinkers hold elected office. Instead, Democrats make a point of pandering to the party’s hard-core leftist base, and Republicans pander to its recently emerged populist base. 

 

If you doubt these points, consider that for all of the attacks Governor DeSantis had hurled at the Disney company, including the special treatment it received, CNN noted the following from the press conference this week announcing the Disney-DeSantis deal: “DeSantis suggested the settlement could give Disney more of an edge to compete with neighboring Universal Orlando’s theme park, which recently announced an expansion slated to be complete next year.”

 

If it weren’t all so sordid and dangerous, it might be funny.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?

 

The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.

 

Never miss any new book by Ray Keating by joining the Pastor Stephen Grant Fellowship with Ray Keating at

https://www.patreon.com/pastorstephengrantfellowship.

 

Various books by Ray Keating…

 

• The Pastor Stephen Grant thrillers and mysteries. There are 19 books in the series now.

 

• Cathedral: An Alliance of Saint Michael Novel is at Amazon. 

 

• Order The Weekly Economist III: Another 52 Quick Reads to Help You Think Like an Economist.Kindle editions here.

 

• Grab The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Kindle and paperback editions here.

 

• Purchase The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Kindle and paperbacks here. 

 

• Signed editions of Ray’s books are at www.raykeatingbooksandmore.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Disney’s Interesting Market Risk Acknowledgment

 by Ray Keating

Commentary

DisneyBizJournal.com

November 23, 2023

 

The story about the political battle between Disney and Florida Governor Ron DeSantis has dragged on for some time now, with neither side behaving well. Quite simply, Disney dove into controversial political issues that had nothing to do with the company’s business; and in reaction, DeSantis wielded, i.e., abused, the power of government to attack an entity espousing a political position with which he disagreed.

So, why am I possibly bringing this up again? Well, I just came across an interesting op-ed at TheHill.com written by Jonathan Turley, a professor of public interest law at the George Washington University Law School. It caught my attention because Turley brought up Adam Smith, the father of modern-day economics and author of An Inquiry into the Nature and Causes of the Wealth of Nations (1776), and Disney. For a free market economist who edits and publishes DisneyBizJournal, this amounted to required reading. 

 

Turley’s basic point is that Adam Smith noted “how the ‘invisible hand’ of the market worked as people exercised their choices between certain products. It can shape economies and challenge whole governments. One company in particular appears to be learning that lesson.” That “one company” is Disney. Now, Turley’s subsequent points can be debated, but the most interesting aspect of his piece is what he reported from Disney’s own report to the SEC:

 

In its annual SEC report, Disney acknowledges that “we face risks relating to misalignment with public and consumer tastes and preferences for entertainment, travel and consumer products.” In an implied nod to Smith, the company observes that “the success of our businesses depends on our ability to consistently create compelling content,” and that “Generally, our revenues and profitability are adversely impacted when our entertainment offerings and products, as well as our methods to make our offerings and products available to consumers, do not achieve sufficient consumer acceptance. Further, consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals, often differ widely and present risks to our reputation and brands.” (Emphasis added)

 

Wow. Interesting. Again, let the debate rage, but that is a fascinating acknowledgment on the part of Disney.

 

By the way, while Turley went to economist Adam Smith to make his point about the market and consumer choice (and understandably so), I previously noted economist Milton Friedman’s points from a classic 1970 New York Times Magazine article on “social responsibility” of business that directly addressed the matter of corporations and social activism. Check that out here.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?

 

Support the Daily Dose of Disney with Ray Keating Podcast at https://www.buzzsprout.com/1724143. Subscribe at the $8 or $10 level, and get The Disney Planner: The TO DO List Solution by Ray Keating. Remain a supporter and you'll get a FREE BOOK by Ray Keating every six months going forward. Thanks!

 

The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.

 

Consider other books by Ray Keating, including…

 

• The Pastor Stephen Grant thrillers and mysteries. There are 18 books in the series now.

 

• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Kindle editions and paperbacks via Amazon here and signed books here. And don’t forget the first book in this growing series, i.e., The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.

 

• Cathedral: An Alliance of Saint Michael Novel is at Amazon. 

 

• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.

 

• Signed editions of Ray’s books are at www.RayKeatingOnline.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Latest Numbers on Disney’s Substantial Economic Impact on Florida

by Ray Keating

News/Analysis/Commentary

DisneyBizJournal.com

November 14, 2023

The impact of The Walt Disney Company on the state of Florida obviously is substantial, and that has been the case for decades. That point is reinforced by a new study from Oxford Economics, commissioned by Disney, with the timing of the report’s release coinciding with the global attraction industry coming together in Orlando this week for IAAPA Expo 2023. 

Adam Sacks, president of Tourism Economics, a division of Oxford Economics, declared, “Disney is an economic catalyst to the state of Florida generating billions in economic activity, either directly, or indirectly through its supply chain and the spending of employees. Disney is also vital to the funding of public services, as it generated taxes of $6.6 billion in 2022, including state and local taxes of $3.1 billion.”

 

While studies like this work according to a variety of assumptions that can be debated, the magnitude of Disney’s impact cannot be missed by even the most casual observers. Here are a few key findings from the study, as reported by the Disney Parks Blog:

 

• During fiscal year 2022, Disney had a $40.3 billion impact on Florida.

 

• Direct and indirect jobs linked to Disney in Florida was estimated at 263,000.  It was reported, “One in every 32 Florida jobs can be attributed to Disney.” That includes Disney’s 82,000 employees across the state.

 

• Disney contracts with 2,500 small businesses in Florida.

 

That last point is important, as people in general, including critics, will talk about Disney just being a big business. But our economy is tightly intertwined, and every large business works with small businesses in a variety of ways. In fact, there’s little doubt that Disney’s impact on small business goes well beyond those 2,500 cited contractors, as a host of small businesses – from individual entrepreneurs without employees to small businesses with payroll – serve Disney, Disney cast members, Disney guests, and beyond.

 

Jeff Vahle, president of Walt Disney World Resort, said, “I am incredibly proud of how Disney has created meaningful change and benefitted people’s lives in Florida for generations, not just in establishing our area’s theme park industry, but also in how we have worked with other sectors across the state to do the same. The numbers speak for themselves on why Disney is so important to fueling jobs, the economy and tourism throughout our region, and the future investments we’re looking to make will continue to provide even more opportunities for Floridians.”

 

While companies often hire consulting firms to do such estimates in order to make clear their economic impact, this latest report, of course, comes amidst attacks by Florida Governor Ron DeSantis (who is seeking to be the Republican presidential candidate in 2024) on the company over political disagreements – a battle that has spilled into the courts. 

 

No matter where one comes down on those issues, two things are worth noting. First, free speech pertains to those with whom one disagrees. Second, using the powers of government to attack particular businesses with whom one has political disagreements is dangerous both politically and in terms of the economy.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?

 

Support the Daily Dose of Disney with Ray Keating Podcast at https://www.buzzsprout.com/1724143. Subscribe at the $8 or $10 level, and get The Disney Planner: The TO DO List Solution by Ray Keating. Remain a supporter and you'll get a FREE BOOK by Ray Keating every six months going forward. Thanks!

 

Consider books by Ray Keating, including…

 

• The Pastor Stephen Grant thrillers and mysteries. There are 18 books in the series now.

 

• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Kindle editions and paperbacks via Amazon here and signed books here. And don’t forget the first book in this growing series, i.e., The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.

 

• Cathedral: An Alliance of Saint Michael Novel is at Amazon. 

 

• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.

 

• Signed editions of Ray’s books are at www.RayKeatingOnline.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

6 Questions for Bob Iger

 by Ray Keating

Commentary

DisneyBizJournal.com

September 23, 2023

 

While visiting Walt Disney World on Friday afternoon, I overheard a conversation among Disney cast members either speculating or knowing that Disney CEO Bob Iger was at the Boardwalk Resort.

 

So, as noted in the accompanying video, this got me thinking about what I would ask Mr. Iger if I happened to bump into him. Here are the six questions that came to mind.

 

First, Disney has made a big deal in recent days about pledging to invest $60 billion in parks and cruise lines over the coming decade, could you provide more specifics? What are we looking at in terms of numbers and projects at Walt Disney World, for example? “Frozen” at Disneyland and “Black Panther” have been mentioned in reports, can you give us more?

 

Second, with news and rumors swirling about offers being made to Disney for ABC and other Disney television networks, including Byron Allen’s reported $10 billion offer for ABC, FX and National Geographic, what’s the company’s thinking on a price target for such assets?

 

Third, can you give us some clarity on the future of ESPN and its move to full streaming?

 

Fourth, in light of the Disney deal with Charter Communication, how do you now envision the future of streaming, such as Disney+, as it relates to cable television? (See the recent DisneyBizJournal analysis).

 

Fifth, the quality of Marvel films has fallen off notably since Avengers: Endgame, or at best these films have become far more uneven. What is the plan going forward, and is Kevin Feige in danger of losing his job?

 

Sixth, some recent Disney movies pulled in a decent amount of revenue at the box office – such as The Little Mermaid, Indiana Jones and the Dial of Destiny and Elemental – but runaway costs made these either box office losers or break-even propositions. What’s being done to get these costs under control?

 

And if I could slip one more question in, it would be: Given the controversy between Disney and Florida Governor Ron DeSantis, it has been reported that you’ve said that you want to “quiet the noise” on these types of issues. How do you accomplish that given the reality of politics?

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? (Keating is a Disney shareholder.)

Consider books by Ray Keating, including…

 

• The Pastor Stephen Grant thrillers and mysteries. There are 18 books in the series now.

 

• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Kindle editions and paperbacks via Amazon here and signed books here. And don’t forget the first book in this growing series, i.e., The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.

 

• Cathedral: An Alliance of Saint Michael Novel is at Amazon. 

 

• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.

 

• Signed editions of Ray’s books are at www.RayKeatingOnline.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Disney Pulls Plugs on Star Wars Hotel and Florida Office Development

 by Ray Keating

News/Analysis

DisneyBizJournal.com

May 18, 2023

 

Today, the Walt Disney Company made a couple of major announcements regarding their investments in and around Walt Disney World. One announcement came as the result of bad decision-making by the company, while the reasons behind the other decision can, and will be, debated.

First, the Star Wars hotel – or the Star Wars: Galactic Starcruiser – will end its voyage after just a year-and-a-half of journeying among the stars. This immersive, cosplay hotel, built on frighteningly expensive two-day stays, was launched in March 2022, and it will come to an end in September of this year. As DisneyBizJournal has argued previously, this was a rather bizarre decision that seemed destined to crash and burn – but few thought that the end would come so quickly and without trying other options.

 

According to various reports, Disney has not announced any plans for the building at this point.

 

Second, Disney has announced that it's pulling the plug on a $1 billion office complex known as the Lake Nona Town Center. 

 

During its most recent earnings call, when Disney CEO Bob Iger was addressing the company’s feud with Florida Governor Ron DeSantis, Iger noted that the company plans to invest $17 billion in Disney World over the coming decade. But he also asked, “Does the state want us to invest more, employ more people, and pay more taxes, or not?”

 

The project was estimated to bring 2,000 jobs to the area, including 1,000 being relocated from California.

 

It must be noted that Disney is in the midst of cost cutting and restructuring, and both of these decisions could tie directly into this effort. Plus, many expect a recession later this year, and if Disney is concerned about that, then closing the doors on a very expensive hotel with limited appeal makes sense, as would reining in this development project.

 

At the same time, there will be plenty of speculation about the development project decision being related to the Disney-DeSantis battle. Indeed, The New York Times pointed out the following:

 

When he announced the [Lake Nona] project in 2021, [Josh D’Amaro, Disney’s theme park and consumer products chairman,] cited “Florida’s business-friendly climate” as justification.

 

Mr. D’Amaro’s tone in an email to employees on Thursday was notably different. He cited “changing business conditions” as a reason for canceling the Lake Nona project. “I remain optimistic about the direction of our Walt Disney World business,” Mr. D’Amaro said in the memo. He noted that $17 billion was still earmarked for construction at Disney World over the next decade — growth that would create an estimated 13,000 jobs. “I hope we’re able to,” he said.

 

But the company’s battle with Mr. DeSantis and his allies in the Florida Legislature figured prominently into Disney’s decision to cancel the Lake Nona project, according to two people briefed on the matter, who spoke on the condition of anonymity to discuss private deliberations. 

 

The Orlando Sentinel reported that a DeSantis spokesman said, “Given the company’s financial straits, falling market cap and declining stock price, it is unsurprising that they would restructure their business operations and cancel unsuccessful ventures.” Meanwhile,  state Rep. Anna Eskamani, D-Orlando, was quoted: “Governor Ron DeSantis is a job killing moron who cares more about his own political ambitions and culture wars than Florida and our future.” Before this news broke, U.S. Senator Rick Scott, a Republican from Florida, noted that “cooler heads need to prevail,” and declared, “I think we’ve got to figure out a way forward here to bring everybody back to the table. So, we can continue to grow tourism, grow jobs, you know, give opportunities for people.”

 

The Disney-DeSantis feud ranks as one of the most bizarre I’ve seen in writing on the economy and business for more than three decades. It was triggered by the company staking out ground on a social issue that has nothing to do with their business, with a Republican governor who wants to be president, DeSantis, then not merely criticizing the business for doing so, but bringing the power of government down on that business for staking out ground with which he disagrees. Politics, populism, the Constitution and freedom of speech, the courts, egos, and the economy are all stirred into this toxic stew. And the only thing we know for sure is that Florida taxpayers and workers will be screwed in the end.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and the Alliance of Saint Michael novels; and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? 

 

Consider books by Ray Keating…

 

• The Pastor Stephen Grant thrillers and mysteries. You can order the latest book in the series – Under the Golden Dome: A Pastor Stephen Grant Novel. Get the signed books here, or paperbacks and Kindle editions right here.

 

• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Kindle editions and paperbacks via Amazon here and signed books here. And don’t forget the first book in this growing series, i.e., The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks at RayKeatingOnline.com or paperbacks, hardcovers and Kindle editions at Amazon.com.

 

• Cathedral: An Alliance of Saint Michael Novel. Signed paperbacks and/or paperbacks, hardcovers and the Kindle edition at Amazon. 

 

• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.

 

• Behind Enemy Lines: Conservative Communiques from Left-Wing New York  –  signed books  or at  Amazon.