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News Reedy Creek Improvement District and the Central Florida Tourism Oversight District
- Thread starter castlecake2.0
- Start date
lazyboy97o
Well-Known Member
A Florida court will not be making any rulings on the first bill dissolving the District.
JAB
Well-Known Member
Newly Appointed Oversight District Administrator Glen Gilzean Now a Named Defendant in Disney World vs DeSantis Lawsuit
Newly appointed Central Florida Tourism Oversight District Administrator Glen Gilzean is now being sued by Disney in federal court
blogmickey.com
The new administrator has now been added to the suit. I'm guessing that's so he will also be bound by any injunctions and not able to pull any shenanigans for the board.
lazyboy97o
Well-Known Member
It’s because they’re suing the District Administrator. Now that he’s the District Administrator he gets added.Newly Appointed Oversight District Administrator Glen Gilzean Now a Named Defendant in Disney World vs DeSantis Lawsuit
Newly appointed Central Florida Tourism Oversight District Administrator Glen Gilzean is now being sued by Disney in federal court
The new administrator has now been added to the suit. I'm guessing that's so he will also be bound by any injunctions and not able to pull any shenanigans for the board.
JoeCamel
Well-Known Member
Multitalented mouseI thought Mickey mugging mode was lightning lane
Ot the cartoon was implying laid off CM are resorting to begging. Or just a joke. It's easy to over think
Because they listen to people who couldn't read an income statement or balance sheet if their life depended on it.
Sirwalterraleigh
Premium Member
It’s being floated as a part of political game.
Financially, Disney is fine - like they always are…
…in terms of Wall Street? They’re “in trouble”…but that means nothing as it’s just complaining from people who generally don’t need the money
The more I think about these two cases and 2 bills, the more I think the Legislature is either extremely stupid or intentionally did things to harm the States case. The February 9th bill is post the new state constitution and authorizes the "WDW special district." Therefore making it extremely difficult to pass a new repeal of it because it would have to be directly against Disney. So did the Legislature intentionally harm the case to screw DeSantis or were they just stupid. If Disney wins their case, you can be sure they will use the February 9th bill as proof the District was authorized by the Legislature and the bill was signed by DeSantis. The original repeal was aimed at all districts pre new constitution that were not reaithorized post new constitution and The WDW land would no longer meet that condition.
flynnibus
Premium Member
They had no use for the first bill after knowing they had to make the second. The fact it basically nullifies the first is the point. It in effect replaces the action of the first
Vegas Disney Fan
Well-Known Member
Because we read the news, it’s no secret they went $70 billion in debt to buy Fox/Hulu a few years ago (and still owe about half that amount), it’s also no secret they took out another $10 billion in credit during Covid.
It’s also no secret that they’ve been hemorrhaging money on D+ the last couple years and that their stock has underperformed the market. Also no secret they are making cuts and laying off people left and right.
Disney may have $10 billion cash in hand but they are also about $45 billion In debt.
Are they in trouble? Nope, they can easily manage this situation with their billions in revenue, but the last half decade hasn’t been good for Disney and it’s going to take a few more years for them to get out of the hole they’ve dug.
flynnibus
Premium Member
Setting up credit and getting emergency loans setup as precautionary were proactive moves to protect their liquidity when covid gave so much uncertainty. Highlighting that here is really misleading- its not liability risks.
70bil was not what they were in the hole for. Again pretty misleading.
Carrying some debt is normal- its good use of money typically. What concerns should be over is it’s burden and how volatile it could be. Both non issues with disney’s situation.
And disney is still very much cash flow positive. It is also not accumulating debt due to operations. Aka it’s sustainable without borrowing or eating into reserves. Disney had divisions in the red due to spending- which is why they can easily reign that in and restructure where it makes sense to optimize.
The threat to disney is the uncertainty of key future segments of how media will function in the future. Disney has not convinced the market they have the formula of how to grow from what they have today to the future where the whole world of movies, broadcast, and DTC changes. The threat to the revenue targets in the near term is what is spooking the market.
Not “financial health”. They wonder what disney will keep/reshape from fox because they want to know what the potential is… not because they think it will bring the company down.
People should again, wonder how Ernest that statement, not promise, is to spend 17 billion dollars on WDW in the next ten years is and why it will be nothing bigger than what is already spent.
If it is, it needs to be.
Seriously wild that Willow, a show that was just produced and released is already being pulled off Disney Plus.
GoofGoof
Premium Member
All of this is true. It also doesn’t show the company being short on cash. Having debt is not an issue unless the cash needed to manage the debt exceeds the cash generated by the business. DIS has $6B of cash flow from operations annually. Their debt service requirements for the next 5 years require significantly less than $6B annually. Fitch’s DIS credit rating is A- which is solidly in the investment grade category. You don’t get an investment grade rating if you are short on cash. It also means they can borrow at the cheapest rate available so provides even more stability. Below is the analyst ratings for DIS from WSJ. 22 positive and 8 hold with no negative. Again, this shows analysts who actually follow the company don’t view it as struggling or short on cash. The stock price has not performed well in the last few years and there are certainly issues with streaming and traditional networks but I have seen no indication that the drag on the stock has anything to do with being short on cash.
GoofGoof
Premium Member
I think as parks fans we will be disappointed at what that $17B actually gets us. It seems like a lot but they spent that over the last decade too so if your expectation is some new rides and maybe a new land or 2 then it’s likely you won’t be too disappointed. If you envision much more than that it’s likely you will be disappointed. I am setting cautious expectations but would love to be pleasantly surprised. I don’t think the company will have to reduce the amount due to financial performance. The parks are the cash cow and they know you need to spend some to keep them going. It’s not a risky place to invest money for them.
Disney+ is a less certain financial proposition. The segment is losing money so cutting costs makes more sense. Every streaming service is experiencing this to an extent. You need content to attract subscribers but eventually you also need to turn a profit and have positive cash flows.
Vegas Disney Fan
Well-Known Member
But the question wasn’t “is Disney healthy?”, or “is carrying debt a normal part of operating a business”, it was “where are people getting the idea they are short of cash?” That was all I was answering, Disney has very publicly taken on a ton of debt over the last few years, it shouldn’t be a surprise people associate that with them being a bit cash strapped.
Vegas Disney Fan
Well-Known Member
Misinterpretation is probably a better phrase than misleading, if people aren’t aware of all the details of running a business, or the finer details around Disneys financials, I don’t think it’s that surprising many equate taking on massive debt with being cash strapped.
Sirwalterraleigh
Premium Member
They reality is they still have $10 bil cash on hand and could borrow any amount of money they want on their terms with a wink and a thumbs up…
No matter the stock price.
Vegas Disney Fan
Well-Known Member
But how many people outside of us Disney nerds know how much cash they have on hand? That was the only point I was trying to make, I just don’t think it should be surprising that many of the 99.99% who don’t track Disney financials (just typing that made me realize we’re all a bit weird) equate taking on debt with being low on cash.
flynnibus
Premium Member
aka misunderstand and then be unaware of their misunderstanding... and then worse... doubling down on their misunderstanding instead of taking in other information. That's how we get here.