DeSantis vs. Disney: Why the Florida governor's fight with a theme park matters

All is not magic in the home of the Magic Kingdom. For the past year, Florida's Republican Governor Ron DeSantis has waged a very public battlewithWalt Disney World, and it doesn't appear to be over yet.

The rift opened more than a year ago, when the attraction'sCalifornia-based parent company, Walt Disney Co., spoke out againsta controversial state law limiting discussions of sexual orientation and gender expression in Florida schools.

DeSantis went after Disney World with its four theme parks, two water parks and a multitude of hotels and resorts and stripped it of its special tax district status, which has essentially made it a self-governed enclave in the Sunshine State for more than 50 years.

As the spat with Disney shows, the 44-year-old has a no holds barred approach to taking on businesses and entities that don't share his views. But his political tactics couldhave broader implications.

Here's how the DeSantis-Disney dispute began, why it's still going and why it matters beyond Florida.

WATCH |DeSantis promises 'more to come' in fight with Disney:

DeSantis promises 'more to come' in fight with Disney

2 years ago

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Disney spoke out on 'Don't Say Gay'law

In the spring of 2022, DeSantis signed what became known as the "Don't Say Gay" law it's actually the Parental Rights in Education Act prohibiting any discussion of sexual orientation or gender identity in classes from kindergarten to Grade 3.

An expansion of the act, that would extend the restriction to all grades, is now working its way through the Florida legislature.

The law sparked a nationwide debate and was condemned by human rights groups, freedom of speech advocates and education organizations.

Staff at Disney World, which is one of the state's largest employers,demanded the company take a stance.

Disney's then CEO Bob Chapekeventually released a statement saying the company and its leaders "unequivocally stand in support of our LGBTQ+ employees, their families, and their communities."

Chapek also said he had a conversation with the governor to express Disney's concerns.

What did DeSantis do to Disney?

DeSantiswas not happy andtook aim at theReedy Creek Independent District, the special taxdistrict the State of Florida created forDisney Worldwhenconstruction on the park began in 1967.

Reedy Creek straddles twodifferent Florida counties. Rather than relying on its neighbours to provide essential services to Disney World, tax revenue generated in the district stayed there and fundeda fire department, emergency medical response, wastewater management and road maintenance.

Having its own administrative body also allowed Disney to make the decisions a local government would, like approving zoning for the construction of new attractions.

Last April, DeSantis signed off on eliminating the special district, and Reedy Creek was set to be dissolved on June 1, 2023, along with five other unrelated special districts caught in the crossfire.

But further legislation passed and signed by DeSantis at the end of February instead brought Reedy Creekunder the state's control. Itwas renamed the Central Florida Tourism Oversight District and the government appointed a five-person board of supervisors all DeSantis allies to manage the mega-park's municipal affairs.

Disney's counter move

While it may have seemed like a mission accomplished moment for DeSantis, Disney got ahead of him.

Earlier in February, the outgoing Reedy Creek board agreed to hand much of its power back to Walt Disney Parks and Resorts U.S. Inc., meaning the incoming board has limited decision-making ability beyond managing basic infrastructure.

In thisdeal with Disney, the outgoing board members also added another clause onefit for a king.

As NPR reported,the clause states thatthe new agreementwith Disney is allowed tocontinue"until twenty one (21) years after the death of the last survivor of the descendants of King Charles III."

Although neither Florida nor the U.S. is ruled by the monarchy, it's common legal practice to tie an agreement to the lifespan of a particular person. Because they tend to live longer than most, members of the Royal Family are popular choices. In this case, King Charles's youngest descendant is Princess Lilibet, the nearly two-year-old daughter of Prince Harry and his wife, Meghan.

None of this was done in secret. The deal was made at a scheduled meeting and it's all on the record. But it seemsno one was paying close attention.

After the new board learnedabout the deal nearly a month later, ithired lawyers. Afurious DeSantis has ordered an investigation into what happened.

LISTEN| Breaking down DeSantis's battle with Disney:

Front Burner24:28Trouble in the Magic Kingdom: Florida vs. Disney

Disney got into a battle with Florida's Republican Governor Ron DeSantis over a recently passed education bill that critics call the "Don't Say Gay" law. After Disney's CEO spoke out against it, state lawmakers revoked the theme park's special tax status that it has held for more than half a century. Today on Front Burner, New York Times reporter Brooks Barnes explains how this became the latest flash point in America's ongoing culture wars.

Why this issue goes beyond Florida

Disney's current CEO, Bob Iger, criticized DeSantis at a shareholder meeting this week, saying the governor's retaliation against the company, for speaking out on controversial legislation, was "anti-business" and even "anti-Florida."

Disney World is the state's top tourist draw, with itsfour theme parks recording a combined 36million visits in 2021,including many of the 3.5 million Canadians who travel to Florida annually.It'sa key contributor toCentral Florida's tourism sector, which is estimated to have an economic impact worthmore than$75billion USfor businesses and other industriesin the region.

Disney World generates more than $5 billion in state tax revenue, according toUSA Todayin 2021.

Florida is the country's fourth-largest economy and Canada is the state'sbiggest international trading partner, with more than $7.7 billion Cdn in bilateral trade, according to the Trade Commissioner's website, which also notes thatCanadian business ownersoperate nearly 600 businessesin the state, whileCanadians own an estimated $60 billion Cdn in property there.

DeSantis has little apprehension aboutpursuing laws that directly target businesses and corporations, such as the contested Stop W.O.K.E. Act, which takes aim at race education and what's referred to as critical race theory. He's also pushing forward onlegislation against businesses and financial institutions with environmental, social and corporate governance (ESG) policies.

But DeSantis's influence expands beyond hisstate, with many Republicans following his leadand looking to him as the future of the party.

His presidential ambitions now seem all but certain. He's touring the country and weighing in onnational political debates.And he's done what many presidential hopefuls before him have by releasing a book.It's calledThe Courage to be Free: Florida's Blueprint for America's Revival.

Although the cohort of presidential candidates is rapidly increasing, various polls show DeSantis is currently the only real contender who would be able tochallenge another famous Florida residentfor the Republican nominationformer U.S. president Donald Trump.