Disney abandons plans for new Florida campus amid clash with Governor DeSantis

Disney on Thursday said it is abandoning plans for the construction of a new campus in central Florida and the relocation of 2,000 employees from Southern California, reported the Associated Press. These employees were intended to work in digital technology, finance, and product development departments of the entertainment giant. The move comes after Disney faced a year of criticism from Florida Governor Ron DeSantis due to the company's opposition to a state law, dubbed "Don't Say Gay law," that prohibits teaching about sexual orientation and gender identity in early grades. To challenge this law, Disney filed a lawsuit against DeSantis and other officials, alleging violations of the First Amendment.

The proposed campus was initially planned to be situated around 20 miles away from the Walt Disney World theme park resort. In a memo addressed to employees, Josh D’Amaro, chairman of the parks, experiences, and products division, explained that the company had decided to abandon these plans due to "new leadership and changing business conditions."

Also Read: Explained | Ron DeSantis takes control of Disney's self-governing district in Florida amid 'Don't Say Gay' row

Disney expresses optimism despite setback

Despite this setback, D'Amaro expressed his optimism regarding the future of the Walt Disney World business and highlighted the company's plans to invest $17 billion and generate 13,000 job opportunities over the next decade.

The clash between Disney and DeSantis has been an ongoing conflict for over a year, drawing criticism towards the governor, especially as he prepares for a potential presidential bid. Jeremy Redfern, DeSantis' spokesperson, mentioned that the state had been skeptical about the realisation of the new Disney campus since its announcement almost two years ago. Redfern pointed out the financial challenges faced by Disney, including declining market capitalisation and falling stock prices, as factors that led to the company's restructuring and cancellation of unsuccessful ventures.

Florida government's response

Florida Senator Joe Gruters, a former chairman of the state Republican Party, referred to Disney's decision as a significant loss. He expressed his hope for resolving the conflict and reestablishing a positive working relationship with Disney, highlighting the company's role as a valuable business and tourism partner for the state over the past five decades. Gruters emphasised the impact of losing 2,000 jobs and a billion dollars' worth of investments, stating that the market is more effective in dealing with companies than heavy-handed government intervention.

Democratic Representative Anna Eskamani, who represents the Orlando area in the Florida House, released a statement placing blame on Governor DeSantis for the job losses. Eskamani criticised DeSantis, accusing him of prioritising his own political ambitions and cultural battles over the well-being of Florida and its future. She contested DeSantis' belief that being "woke makes you go broke," arguing that this situation proves the opposite. Eskamani strongly opposed DeSantis' presidential aspirations.

Also Read: Explained: How Disney is trying hard not to fail as Marvel magic wanes

Why are Disney and DeSantis at loggerheads?

The conflict between Disney and DeSantis originated when Disney publicly opposed the state's stance on teaching about sexual orientation and gender identity in early grades, a policy referred to as "Don't Say Gay" by critics. In response, DeSantis took control of Disney World's self-governing district through legislative measures and appointed a new board of supervisors. Prior to the arrival of the new board, Disney had signed agreements with the previous board, which effectively stripped the new supervisors of their authority over design and construction.

In response, the Republican-controlled Florida Legislature passed legislation allowing the DeSantis-appointed board to repeal those agreements and subjected the theme park resort's monorail system to state inspection, which was previously handled internally by Disney. Disney's lawsuit against DeSantis alleges that the governor engaged in a targeted campaign of government retaliation. The lawsuit aims to invalidate the takeover of the theme park district and the actions of the DeSantis oversight board, asserting violations of the company's free speech rights.

The establishment of Disney's self-governing district by the Florida Legislature played a crucial role in the company's decision in the 1960s to build near Orlando. At that time, Disney had proposed the construction of a futuristic city with advanced urban planning and a transit system. This vision necessitated the company's autonomy within the area. However, the envisioned futuristic city never came to fruition, and instead, it evolved into the second theme park that opened in 1982, becoming the renowned Walt Disney World we know today.

What all this means?

The decision to abandon the new campus and the relocation of employees marks a significant development in the ongoing conflict between Disney and Governor DeSantis. It has also stirred debates regarding the balance between corporate interests, freedom of speech, and government intervention. The outcome of Disney's lawsuit against DeSantis will likely have implications not only for the company but also for the broader discussions surrounding free speech rights and the role of corporations in shaping social narratives.

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