Coronavirus and Walt Disney World general discussion

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DisneyCane

Well-Known Member
I agree with most of your posts, but I think here the savior for the govt would be that we are currently in a national emergency. It has been declared. This affords them more powers than when not in a state of emergency

That is true but a state of emergency doesn't give them the power to violate the constitution. They can't take my house and turn it into a hospital without paying me full market value just because it is a state of emergency.
 

CastAStone

5th gate? Just build a new resort Bob.
Premium Member
Then why is it that everyone here and in the media are speaking the impact on Disney in apocalyptic terms? It's not like they're insane or paranoid.
It’s because they’re insane and paranoid.

Disney just raised $7bn in debt at an average rate of 2% above US treasury bonds. Their market cap is $175,000,000,000. They have $80,000,000,000 more in assets than liabilities. The people who put their money where their mouth is don’t think anything is going to happen to Disney.
 

GoofGoof

Premium Member

Calmdownnow

Well-Known Member
I suspect the financial impact of that could potentially last a number of years.

Much of U.S. growth in recent years has been built upon consumer spending. Disney Parks have ridden a growth curve, raising prices etc year on year, because there has been a confident market in which discretionary spending for some economic groups has been substantial worldwide. We are now entering an economic cycle where there is going to be less discretionary money (ie fewer bucks to spare after core bills have been paid) and a less confident consumer base because savings have been eroded. Can Disney Parks ride the burst of this bubble? Maybe, but likely only with a very different pricing and profit model.
 

Stripes

Well-Known Member
How on Earth are they going to survive come summer? They wouldn't be furloughing employees if they don't think they'll lose ~$50-80 billion last quarter and this quarter combined.
How exactly are you obtaining these numbers?

(Rhetorical question because that's nonsense.)
They don’t have $50 billion in annual expenses. Try again.

They’re going to lose maybe $3-6 billion a quarter. Read the 10-K or don’t participate in financial discussions.
Bingo.
 

flynnibus

Premium Member
It is on the same basis that, if I owned a movie theatre, I believe that I could successfully sue the entity that has forced me to close and demand that I be justly compensated. I was operating a lawful business and my business model was based upon compliance with the laws and regulations in place at the time I opened the business. Forcing me to shut down my business is the same concept as eminent domain.

How many of these lawsuits do you see during evacuation orders?
 

DCBaker

Premium Member
Here is the letter sent to Disney Parks, Experiences and Products (DPEP) Executives, Salaried and Non-Union Hourly Cast

Dear Cast Members and Imagineers:

As you know, over the past several weeks, COVID-19 has completely reshaped our daily lives as well as our business. A new chapter in the history of our company began when we closed our theme parks, hotels, stores and other operations to help lead the effort to stop the spread of COVID-19. This reality has been sobering to all of us. As difficult as this decision was, we know it was the right one to help protect our Cast Members, our Guests and our communities.

True to the core of Disney, it is heartwarming to see many of you continuing to show your compassion, creativity and support for each other over the past few weeks. The acts of kindness and joy we’ve seen our Cast sharing have been inspirational. We appreciate all you do and know that our Cast Members will always be the heart and soul of Disney. This is why some of the choices we must make are extremely difficult.

At DPEP, as we look ahead, we must make tough decisions about the impacts of the extended closure, and are doing so with two priorities in mind:

  • Caring for our Cast Members:As a company and a leadership team, our focus now is on how best to care for our Cast Members – including keeping you safe, protecting your benefits, and preserving your job for the future.
  • Protecting the future of Disney: As we navigate an extraordinarily challenging business climate, we want to best position our company to weather this crisis.
With the utmost care and consideration, we are instituting a temporary, short-term furlough for executive, salaried and non-union hourly Cast Members based in the U.S. with the exception of those whose roles or projects are crucial to maintaining our operations during this closure period, effective April 19.

By taking this step now, we are able to allow Cast Members to:

  • Maintain health and insurance benefits coverage, with the company paying both the employer and employee weekly benefit contributions;
  • If eligible, elect to use some or all of their available paid-time off hours (vacation and floating holidays) at the start of the furlough;
  • Once furloughed, access an extra $600 per week in federal compensation through the economic stimulus bill, as well as state unemployment insurance benefits;
  • Continue progress toward their education goals with the Disney Aspire education program; and
  • Use services provided by LifeCare, Employee Assistance Program and wellness resources.
And most important, this allows us to preserve the jobs of Cast Members who are, and will continue to be, an important part of the Disney family; and provide an easier return to work when our communities recover from the impact of COVID-19.

As part of our commitment to our collective bargaining agreements we will be setting up meetings today with the unions.

This certainly is one of the most difficult choices the company has ever faced. But we are committed to doing everything we can – even when the decisions are unimaginably hard – to help preserve jobs and help ensure that our Cast Members can return to their roles.

Early next week, your leaders will be reaching out to you. We know that nothing about this situation is easy and that we’re all facing different challenges in our lives right now. We hope that before long, we will all be able to come together, once again, as a stronger Disney family to create magic for our Guests.

 

"El Gran Magnifico"

Bring Me A Shrubbery
Premium Member
It is on the same basis that, if I owned a movie theatre, I believe that I could successfully sue the entity that has forced me to close and demand that I be justly compensated.

I think we may actually be able to test that. Odds aren't in your favor. Good Luck though. You may want to try to get a lawyer that would take that on a contingency basis.
 
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