Tokyo Contract Question

[Cruiseketeer]

I was reading the article on Reuters
Disney eyes new markets as Japan ages
http://www.reuters.com/article/inDepthNews/idUST8304420080415?pageNumber=1&virtualBrandChannel=0

I know that the park is not technically Disney owned, it is owned by the Oriental Land company (?)

Does anyone know the specific of the lease? How long? or even why Ron Miller did it that way? Will it ever turn into Disney's hands?

 

[marni1971]

In a nutshell (I seem to say that a lot...)

The 45 year lease was signed in 1979. Disney in the late 70`s was a very cautious company; earnings were down from animation and movies, WDW had cost a fortune to build and was still feeling the repercusions of the 1973 oil crisis - Tomorrowland had no choice but to be completed and BTM was planned to attract new interest - the first new build in 5 years - but the unbuilt sections of the phase one plan had been mothballed. EPCOT Center was underway, and projections were already above the estimated budget. Disney needed some hard cash, and the OLC offered it. It cost Disney $2.5 million, but they were to get 10% of admission and sponsorship and 5% of food and merch. Miller and Walker thought it was better than nothing, but Eisner and Wells vowed never to do it again - hence the deals for EuroDisney.

 

[Cruiseketeer]

Thank you very much! That is very interesting to me. What will happen when the 45 years is up though? 2024 is not that far away in the business world.

 

[TheDisneyMagic]

When the deal is up, either Walt Disney Company will have to purchase the entire resort back from Oriental Land Company, Oriental Land Company will have to have a new contract with the Oriental Land Company or Oriental Land Company can continue to run the park, but literally have to remove/demolish everything and start again as every show, attraction (literally everything) is licenced from Disney.