News Reedy Creek Improvement District and the Central Florida Tourism Oversight District

AEfx

AEfx

Well-Known Member
ParentsOf4 said:
Or there was a tacit agreement to follow Disney's lead and keep silent rather than potentially stir a hornet's nest, in the hopes that this gets amicably resolved before there is a financial impact.
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This.

It's also, as has been said again and again in this thread yet ignored by people thirsty for drama, and folks who are conditioned to expect every thought anyone has being tweeted instantly, legally saying anything publicly about this would be the dumbest thing Disney could do.

Of course they didn't discuss it in publicly available earnings call. They are still formulating their legal response to this. There is nothing they could say publicly right now that would be useful in any way, shape, or form to their cause.
 
mikejs78

mikejs78

Well-Known Member
AEfx said:
It's also, as has been said again and again in this thread yet ignored by people thirsty for drama, and folks who are conditioned to expect every thought anyone has being tweeted instantly, legally saying anything publicly about this would be the dumbest thing Disney could do.
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Who are you referring to? I don't know anyone here who has ignored this, nor anyone who doesn't recognize this as the right strategy?
 
GoofGoof

GoofGoof

Premium Member
ParentsOf4 said:
Or there was a tacit agreement to follow Disney's lead and keep silent rather than potentially stir a hornet's nest, in the hopes that this gets amicably resolved before there is a financial impact.
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AEfx said:
This.

It's also, as has been said again and again in this thread yet ignored by people thirsty for drama, and folks who are conditioned to expect every thought anyone has being tweeted instantly, legally saying anything publicly about this would be the dumbest thing Disney could do.

Of course they didn't discuss it in publicly available earnings call. They are still formulating their legal response to this. There is nothing they could say publicly right now that would be useful in any way, shape, or form to their cause.
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You are both assuming some sort of collusion between analysts who cover the stock and the company. Of course Disney didn’t discuss this as part of their prepared remarks. Nobody was expecting that. If this new law was so detrimental to TWDC that it was driving even part of the stock losses (a statement made by multiple people both on this thread and in the media) then certainly an analyst would ask for an update or a comment or some sort of clue about expected possible outcome as to how to adjust their models. I’m sure Disney would have had no meaningful response but that wouldn’t have stopped the question from being asked. They are mostly sell side analysts on those calls that the company is pretty familiar with so its possible some or most were asked individually not to bring it up by investor relations but that would be a pretty big ask if the issue was really a material driver of the results.
 
GoofGoof

GoofGoof

Premium Member
mikejs78 said:
Who are you referring to? I don't know anyone here who has ignored this, nor anyone who doesn't recognize this as the right strategy?
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There were initially some people in this thread who acted surprised Disney didn’t respond quickly. Some random posts pages and pages back. The majority of people agreed that it was the right strategy, and it is.
 
GoofGoof

GoofGoof

Premium Member
ParentsOf4 said:
I am suggesting no such thing.

Please reread my prior post where I explicitly used the word “tacit” (understood or implied without being stated).

Financial analysts are smart people when it comes to money. They know that asking anything related to the current RCID situation solves nothing, and could potentially lead to an escalation between Disney and DeSantis, depending on how the question was responded to. In other words, from a financial perspective, there’s no upside and a potential downside to raising this issue in an earnings call.

They don’t have to “collude” anything with Disney - they know better.
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Maybe so and especially if they don’t think it moves the needle financially. In my experience analysts will consistently ask questions even if they know the company cannot or will not answer them in the hopes of getting a crumb or a clue in the response. This is especially true when referencing things like rumored M&A activity or pending lawsuits or regulatory hurdles. They ask knowing the company will say they cannot comment in the hopes they add some color. Just about every quarter the company I work for gets a question on potential M&A activity and the response is always the same that the company does not comment on specific non-public transactions but our CEO has in the past added color implying which way the wind is blowing.
 
GoofGoof

GoofGoof

Premium Member
Vegas Disney Fan said:
The fact no one’s even mentioned the hundreds of millions of Lake Nona tax breaks tells me this is all political noise.

All this noise about RCID, the no fly zones, and now Disney copyrights but not even a whisper about the couple hundred million in play at Lake Nona. If they really wanted to show “woke Disney” that would be the place to do it.
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Last I saw Disney recently posted some WDI jobs that still say the job is expected to be relocated to Orlando in late 2024. No signs they expect any change to that plan but we are more than 2 years out so a lot can still change. As we talked about before, going after those tax credits would be a “nuclear option” for the state which could have devastating consequences for the state economy long term. First, I’m not even sure if it’s legal since the company is meeting the requirements of the program. The only way they could do it would maybe be to cancel the whole program for everyone which again, may not be legal either. Second, even if the state could cancel the program it would be a terrible decision and would greatly reduce the number of new jobs coming to the state. Especially jobs outside of travel and tourism that are desperately needed to diversify the state economy that is disproportionately impacted by economic downturns due to the nature of tourism. Really a bad idea.

I agree that the other stuff you listed are more political talking points. Saying you are going to end corporate handouts and put all businesses on an even playing field and then continuing to offer hundreds of millions in tax credits to certain businesses is the definition of hypocrisy, but in politics as the saying goes you can fool some of the people all the time.
 
MagicHappens1971

MagicHappens1971

Well-Known Member
Vegas Disney Fan said:
The fact no one’s even mentioned the hundreds of millions of Lake Nona tax breaks tells me this is all political noise.

All this noise about RCID, the no fly zones, and now Disney copyrights but not even a whisper about the couple hundred million in play at Lake Nona. If they really wanted to show “woke Disney” that would be the place to do it.
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I believe someone already addressed that the reason DeSantis hasn’t threatened the Lake Nona tax break is because it’s not a special tax break, it’s part of a law / tax code that any business is entitled to?
 
GoofGoof

GoofGoof

Premium Member
MagicHappens1971 said:
I believe someone already addressed that the reason DeSantis hasn’t threatened the Lake Nona tax break is because it’s not a special tax break, it’s part of a law / tax code that any business is entitled to?
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It is a special tax break and not part of the tax code. There’s a corporate tax rate that applies to every business and your taxes due are based on that but only businesses that meet the qualifications for this program get tax credits which offset part or all of the taxes they owe. Not every business in FL gets those credits. If I open a hardware store I don’t get those credits but other larger employers get them. This particular program requires at least $25M in investment and at least 100 new jobs.
 
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WDW Pro

WDW Pro

Well-Known Member
mikejs78 said:
I and others were specific - several weeks ago. I feel no need to rehash it, you didn't respond so I assume you don't have the answers. Feel free to dig up the old post and respond to my critique.
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The chance that I know exactly which things you're referring to is next to zero. You have your opportunity to ask them now if you'd like.
 
Rich Brownn

Rich Brownn

Well-Known Member
GoofGoof said:
It is a special tax break and not part of the tax code. There’s a corporate tax rate that applies to every business and your taxes due are based on that but only businesses that meet the qualifications for this program get tax credits which offset part or all of the taxes they owe. Not every business in FL gets those credits. If I open a hardware store I don’t get those credits but other larger employers get them. This particular program requires at least $25M in investment and at least 100 new jobs.
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Plus Disney could always cancel the moves and the project. Its a little harder to move WDW.. :)
 
GoofGoof

GoofGoof

Premium Member
Rich Brownn said:
Plus Disney could always cancel the moves and the project. Its a little harder to move WDW.. :)
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True. The travel and tourism industry in general is pretty much stuck. You can’t move a theme park or a hotel that’s already built to another state. The bigger impact of this negative turn towards business is on other industries that have more options. If you are a large corporation looking to move pharmaceutical R&D or manufacturing or customer call centers, FL had a lot of appeal due to a business friendly environment and low cost of living for workers. Take away the business friendly environment and there are a bunch of other options that offer low cost of living.
 
L

Lilofan

Well-Known Member
GoofGoof said:
Last I saw Disney recently posted some WDI jobs that still say the job is expected to be relocated to Orlando in late 2024. No signs they expect any change to that plan but we are more than 2 years out so a lot can still change. As we talked about before, going after those tax credits would be a “nuclear option” for the state which could have devastating consequences for the state economy long term. First, I’m not even sure if it’s legal since the company is meeting the requirements of the program. The only way they could do it would maybe be to cancel the whole program for everyone which again, may not be legal either. Second, even if the state could cancel the program it would be a terrible decision and would greatly reduce the number of new jobs coming to the state. Especially jobs outside of travel and tourism that are desperately needed to diversify the state economy that is disproportionately impacted by economic downturns due to the nature of tourism. Really a bad idea.

I agree that the other stuff you listed are more political talking points. Saying you are going to end corporate handouts and put all businesses on an even playing field and then continuing to offer hundreds of millions in tax credits to certain businesses is the definition of hypocrisy, but in politics as the saying goes you can fool some of the people all the time.
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Florida even Central FL have diversified with aerospace and defense companies and jobs. A number are filled by highly educated professionals and experienced , moving to FL to work these well paid positions. It at least is a start.
 
mikejs78

mikejs78

Well-Known Member
freedining said:
In the interest of not losing more than RCID, including long running copyrights, will Disney update their culture policy similar to what Netflix released today? Specifically, wokesters take a hike?

I’m really interested in seeing the next quarterly results, which will cover more than just the first week of Disney’s very public soapboxing. Maybe I’m not remembering correctly, but it seems the current problems didn’t start until about a week before the last quarter ended.
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Nope, they won't. Disney isn't hurting. The parks are full to the brim, and Dr Strange just opened as the 11th highest grossing domestic open of all time.

Disney will not lose Reedy Creek (legally, they can't).

They will lose copyright on steamboat Willie, that was a foregone conclusion before this whole mess. But as has been pointed out before, they own the trademark on Mickey so the copyright expiration will have limited impact. Any other copyright bills won't happen.
 

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