Florida Gov. Ron DeSantis wants to paint Walt Disney as a company that's taking advantage of his state.
In this narrative, Disney World has been fleecing Florida, taking money from the state and not paying its fair share.
That's how the right-wing candidate for the Republican presidential nomination has repeatedly justified his takeover of the former Reedy Creek Improvement District.
The district, which Florida legislators created in 1967, provided Disney with a self-governance framework. DeSantis's takeover and elimination of the district, a move Disney has opposed by filing a federal lawsuit, has become a major battle between the governor and his state's largest single-site employer.
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The DeSantis-Disney dustup started when former Mouse House Chief Executive Bob Chapek took a public stand against the governor's so-called Don't Say Gay bill. After that happened, Disney alleges in the lawsuit, DeSantis took steps to dismantle Reedy Creek and replace it with a handpicked board.
In a recent appearance on CNBC's "Last Call," DeSantis repeated his oft-cited argument. He called on Walt Disney (DIS) -) CEO Bob Iger to drop the lawsuit, saying that the company was going to lose and that he wasn't retaliating but merely leveling the playing field.
“So all we want to do is treat everybody the same, and let’s move forward. I’m totally fine with that," he said. "But I’m not fine with giving extraordinary privileges, you know, to one special company at the exclusion of everybody else.”
The problem -- and it's one the governor is fully aware of -- is that the Reedy Creek district wasn't unique. It was part of a system that has benefitted hundreds of Florida companies, including The Villages, a 55+ housing development, and the Daytona International Speedway.
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Disney's Iger has answered DeSantis' claims
If Reedy Creek was the only special district in Florida, DeSantis's arguments might carry some weight. But it's not.
One can even argue that the state's largest single-site employer, which drives billions of dollars in tourism, might deserve some special consideration. But in fact Disney is, again, one among hundreds of companies that have benefited from these special districts.
Iger aggressively fired back at DeSantis' during Disney's second-quarter-earnings call.
"This is not about special privileges or a level playing field or Disney in any way using its leverage around the state of Florida," Iger said. "But since there’s been a lot said about special districts and the arrangement that we have, I want to set the record straight on that, too. There are about 2,000 special districts in Florida. Most are established to foster investor development -- we were one of them."
The special districts were created, according to Iger, to make doing business in the state easier, and Disney has done a lot of business in the state. The company employs more than 75,000 people in Florida and attracts tens of millions of people to the state.
"So while it is easy to say that the Reedy Creek special district that was established for us over 50 years ago benefited us, it is misleading to not also consider how much Disney benefited the state of Florida," he said.
Iger also cited the Daytona Speedway and Villages special districts. (Both are operated by right-leaning entities, although the CEO did not specifically make that point.)
"If the goal is leveling the playing field, then the uniform application of the law or government oversight of special districts needs to occur or be applied to all special districts," he added.
Iger makes a threat of his own
Iger has maintained that DeSantis's stand is purely political. The Disney lawsuit accuses DeSantis of "retaliation" over Disney exercising its right to free speech when Chapek criticized the governor's legislation.
Iger also made clear that Disney has been a good citizen in Florida.
"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," he said.
"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?"
Disney plans to spend $17 billion in Florida over the next 10 years. It could move some of that spending to other ventures. The company has already canceled a $1 billion Florida headquarters project that would have moved about 2,000 high-paying jobs from California to Florida. That $1 billion was not part of the $17 billion in planned capital spending at Disney World.
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