DeSantis battle unlikely to hurt Disney, says former Disney exec

Alexandra Canal

Disney's (DIS) high-profile battle with Florida Gov. Ron DeSantis reached new heights on Monday after the governor's hand-selected Central Florida Tourism Oversight District board launched a countersuit against the company, citing "backroom deals" favorable to the media giant.

The news came after Disney filed a lawsuit against DeSantis and the board last week, asking the federal court to intervene and order the governor to stop punishing the company for what it says is constitutionally protected free speech.

A question Disney shareholders may have is what the ongoing fight means for the entertainment giant. One former Disney executive told Yahoo Finance it won't hurt the business.

"You're not going to see any impact on the attendance of the parks...I don't think 99% of people out in the world are even thinking about it, or care about it," Lee Cockerell, former executive vice president of operations for the Walt Disney World Resort, told Yahoo Finance Live in an interview on Wednesday.

Robert Iger, Chief Executive Officer of Disney, attends the 25th Television Academy Hall of Fame on Tuesday, Jan. 28, 2020 at the Television Academy's Saban Media Center in North Hollywood, Calif. (Photo by Jordan Strauss/Invision for the Television Academy/AP Images)
Robert Iger, Chief Executive Officer of Disney, attends the 25th Television Academy Hall of Fame on Tuesday, Jan. 28, 2020 at the Television Academy's Saban Media Center in North Hollywood, Calif. (Photo by Jordan Strauss/Invision for the Television Academy/AP Images) (Jordan Strauss/Invision/AP)

The fight with DeSantis stems from what has largely been seen as a politically-targeted response over Disney's reaction to the so-called "Don't Say Gay" law, which forbids instruction on sexual orientation and gender identity from kindergarten through third grade.

In 2022, then-Disney CEO Bob Chapek condemned this law at the company's annual shareholder meeting after initially deciding not to speak publicly on the matter.

That decision set off a political firestorm which continues today, with current Disney CEO Bob Iger defending the company's actions and denouncing DeSantis' practices during its annual meeting of shareholders held earlier this month.

"A company has a right to freedom of speech just like individuals do," Iger said at the time, describing DeSantis' policies as "anti-business" and "anti-Florida."

The Florida governor, who announced new legislation that would require Disney to adhere to further inspections of its theme parks, previously said he's open to developing land near Disney as a way to exercise further control, floating possibilities like a state park or even a state prison. He also suggested the board should consider raising taxes on the company.

FILE - Florida Republican Gov. Ron DeSantis arrives at the Foreign Office to visit Britain's Foreign Secretary in London, Friday, April 28, 2023. DeSantis is slated to headline Iowa Rep. Randy Feenstra’s annual summer fundraiser in northwest Iowa on May 13 and is expected to speak at a party fundraiser later that evening in Cedar Rapids. A campaign official for former President Donald Trump said Saturday, April 29, that the former president now plans to be in Iowa on the same day to headline an organizing rally at a sprawling park in downtown Des Moines. (AP Photo/Alberto Pezzali, File)
Florida Gov. Ron DeSantis arrives at the Foreign Office in London, Friday, April 28, 2023. (AP Photo/Alberto Pezzali, File) (ASSOCIATED PRESS)

Disney 'did the best' it could

Disney's lawsuit categorized the DeSantis fight as a "targeted campaign of government retaliation —orchestrated at every step by Governor DeSantis as punishment for Disney’s protected speech — [that] now threatens Disney’s business operations, jeopardizes its economic future in the region, and violates its constitutional rights."

In a statement sent to Yahoo Finance in response to the lawsuit, the governor's communications director, Taryn Fenske, said, "We are unaware of any legal right that a company has to operate its own government or maintain special privileges not held by other businesses in the state. This lawsuit is yet another unfortunate example of their hope to undermine the will of the Florida voters and operate outside the bounds of the law."

As the battle intensifies, some have suggested Disney move its operations to another state like Texas — although Cockerell categorized any move as an impossibility.

"This is like a city. It's a mammoth place," he said. "[Disney] is gonna be [in Florida], and they're gonna be here for a long, long time — probably forever."

The former executive added Disney had no other choice but to act against the governor.

"I don't think there was any other way to go," he said, adding Disney was caught in the middle. "You can't do the 'right thing' one way or the other. We had employees on one side, and we had the government on the other side. Disney did the best they could."

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at alexandra.canal@yahoofinance.com

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