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Disney board chosen by DeSantis says predecessors stripped them of power
Disney v DeSantis dispute hinges on clause referencing King Charles III
(34 minutes later)
Supervisors had been appointed by Republican governor after state overhauled Disney’s government in retaliation for opposing ‘Don’t Say Gay’ legislation
Company makes last-minute move to keep control of district as board appointed by governor in ‘don’t say gay’ feud takes over
Board members picked by the Florida governor, Ron DeSantis, to oversee the governance of Walt Disney World said on Wednesday their Disney-controlled predecessors pulled a fast one by passing restrictive covenants that strip the new board of many of its powers.
A dispute between the Florida governor, Ron DeSantis, and Disney over control of the company’s Florida theme park district hinges on a clause referencing King Charles III and his descendants.
The current supervisors of the Central Florida Tourism Oversight District said at a meeting their predecessors last month signed a development agreement with the company that gave Disney maximum developmental power over the resort’s 27,000 acres in central Florida.
The row began after DeSantis in March 2022 passed a “don’t say gay” law banning classroom teaching on sexual orientation and gender identity. The law was highly controversial, with LGBTQ+ activists saying it was discriminatory. Joe Biden denounced it as “hateful”.
The five supervisors were appointed by the Republican governor after the state legislature overhauled Disney’s government in retaliation for the entertainment giant publicly opposing “Don’t Say Gay” legislation that bars instruction on sexual orientation and gender identity in kindergarten through third grade, as well as lessons deemed not age-appropriate.
Under former chief executive Bob Chapek, Disney was initially hesitant to state public opposition to the bill, but did so after pressure. That prompted DeSantis and Florida Republicans to try to revoke privileges Disney has had for decades at its theme park, which employs 75,000 people.
In taking on Disney, DeSantis furthered his reputation as a culture warrior willing to wield the power of state government to accomplish political goals, a strategy expected to continue ahead of his potential White House run.
However, a new governing board appointed by DeSantis on Wednesday reportedly said it will need to overturn last-minute agreements which would prevent it from taking control.
The new supervisors replaced a board controlled by Disney during the 55 years the government operated as the Reedy Creek Improvement District. The new board members held their first meeting this month and said they found out about the agreement after their appointments.
The document states that it will stand until “21 years after the death of the last survivor of the descendants of King Charles III, king of England living as of thedate of this declaration”.
“We’re going to have to deal with it and correct it,” board member Brian Aungst said. “It’s a subversion of the will of the voters and the legislature and the governor. It completely circumvents the authority of this board to govern.”
“Royal clauses” of this kind are used to avoid rules in some places against contracts which last in perpetuity. The British royal family was chosen for the clauses because information about the family tree was readily available, but also because of the “better healthcare available to, and longer life expectancy of, a royal family member compared to a non-royal”, according to the law firm Birketts.
Under the terms of the agreement, the district is prohibited from using the name “Disney” or any symbols associated with the resort without company permission, nor can it use the likeness of Mickey Mouse, other Disney characters or other intellectual property in any manner. The company can sue for damages for any violations and the agreement is in effect until perpetuity, according to the declaration.
In February, the Florida state house passed a bill to end the unusual status that allowed Disney World to govern itself. Under the status, Disney World had its own police and fire departments, planning powers and some other public functions.
If the agreement is deemed to violate rules against perpetuity, it will be in effect until 21 years after the death of the last survivor of the descendants of England’s King Charles III, the declaration said.
The bill gave DeSantis the power to appoint the five members of the board that controls government services for the Reedy Creek district.
In a statement, Disney said: “All agreements signed between Disney and the District were appropriate, and were discussed and approved in open, noticed public forums in compliance with Florida’s Government in the Sunshine law.”
“We’re going to have to deal with it and correct it,” board member Brian Aungst said of the last-minute agreements on Wednesday, according to the Associated Press. “It’s a subversion of the will of the voters and the legislature and the governor. It completely circumvents the authority of this board to govern.”
Separately, Disney World service workers on Wednesday voted to accept a union contract offer that raises the starting minimum wage to $18 an hour by the end of the year.
“Our cast members have always been at the heart of the Walt Disney World experience, and we are thrilled that, with the support of the union, they have overwhelmingly approved this new five-year agreement that significantly increases wages, alongside our leading benefits program that includes affordable medical coverage and more,” Walt Disney World Resort president Jeff Vahle said in a statement.
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“Frontline employees also have access to 100% paid tuition for higher education through the Disney Aspire program.”
In a statement, Disney said: “All agreements signed between Disney and the District were appropriate, and were discussed and approved in open, noticed public forums in compliance with Florida’s ‘Government in the Sunshine’ law.”
The agreement covers around 45,000 service workers at the theme park, including costumed performers, bus drivers, culinary workers, lifeguards, theatrical workers and hotel housekeepers.
Buckingham Palace declined to comment.
Workers will see their hourly wages rise between $5.50 and $8.60 an hour by the end of the five-year contract, according to union leaders.
Five years ago, Disney became the first major employer in central Florida to agree to a minimum hourly wage of $15.
