Why Bob Iger Isn’t Backing Down in Florida Feud
Before The Walt Disney Company’s latest earnings report, I predicted that CEO Bob Iger would largely stay quiet about the Florida Feud.
I suggested that he would reiterate points he’d previously made. But Disney’s leader took a different approach.
Photo: The Walt Disney Company
Here’s why Iger isn’t backing down from a fight in Florida.
Spoiler: Iger likes Florida’s Governor less than he likes Bob Chapek. And Iger haaaaaaates Chapek.
What Just Happened
Let’s start with what Iger said on Wednesday, May 10th. Then, we’ll backtrack.
Phil Cusick of JPMorgan asked the following, highly leading question:
“And Bob, Florida is such a big part of the value of the company, but you have this political issue that only seems to get more press.
It seems like you’re stuck with this fight.”
Photo: Chip Somodevilla/Getty Images
Cusick spun the question into a more reasonable discussion about how the Florida Feud could impact investors. Still, I doubt he expected Iger to take the bait.
As a master of PR, Iger can quickly deduce which topics could prove troublesome when analysts recap shareholder calls.
(Photo by Kimberly White/Getty Images for Vanity Fair)
Historically, Iger has offered diplomatic answers that reflect how this CEO rationalizes his business decisions. Not on Wednesday, though.
Bob Iger chose violence.
Source: Disney
Notably, Iger didn’t even need to reply. Disney’s CFO, Christine McCarthy, jumped on the grenade by offering her own thoughts.
Iger could have nodded and allowed the conversation to end there.
That is NOT what happened. Disney’s CEO said the following:
(Photo by Jerod Harris/Getty Images for Vox Media)
“Regarding Florida, I got a few things I want to say about that, Phil.
First of all, I think the case that we filed last month made our position in the facts very clear, and that’s really that this is about one thing and one thing only, and that’s retaliating against us for taking a position about pending legislation.
And we believe that in us taking that position, we are merely exercising our right to free speech.”
Photo: Washington Post illustration; Jordan Strauss/Invision/AP; iStock
I feel obligated to say…
The stunning part is that Iger was just getting warmed up.
Iger Has Something to Say about Florida’s Governance
(Photo by Jemal Countess/Getty Images)
Here are his next comments:
“Also, this is not about special privileges or a level playing field or Disney in any way using its leverage around the state of Florida.”
Iger knows that Florida Governor Ron DeSantis has instructed his allies to adopt this message about the Disney squabble.
Photo: Maria Tamo/Getty Images
In a single sentence, Iger dismisses the entire argument. Then, he proceeds to add context, refuting the argument point by point.
Disney’s leader says things like:
“There are about 2,000 special districts in Florida, and most were established to foster investment and development, where we were one of them.”
Photo: Fox Business
Read: Disney’s Reedy Creek Improvement District isn’t anything special but instead one of thousands. Then, he adds:
“We built a business that employs, as we’ve said before, over 75,000 people and attracts tens of millions of people to the state.” And he’s right, you know.
Iger later recites some of the data I mentioned in that article:
“…we’re the largest taxpayer in central Florida, paying over 1.1 billion in state and local taxes last year alone, and we pay more taxes, specifically more real estate taxes, as a result of that special district.”
I couldn’t shake the feeling that Disney carefully ordered all the talking points DeSantis had used and then systematically destroyed them.
Photo: The Wall Street Journal
Iger punctuated his point by finitely stating, “…we all know there was no concerted effort to do anything to dismantle what was once called Reedy Creek Special District until we spoke out on the legislation.”
In short, Iger controlled the message, which was the one thing Bob Chapek never could do, which is how Disney found itself in this whole mess in the first place.
Iger’s Strategic Move
Credit: WESH2
Here’s the fascinating part about Iger’s comments. At NO point did he mention Florida’s governor by name.
Instead, the diatribe remained generic, which reminds me of an old political stratagem.
Ron DeSantis
Some advisors tell their candidates never to say the other opponent by name, as it raises their awareness with the audience.
Iger understands that while the polling isn’t going well, DeSantis wants to run for President of the United States.
Similarly, most analysts have drawn the conclusion that much of what we’re seeing here is political theater rather than a meaningful attempt at governance.
Disney’s CEO wouldn’t heighten the profile of the governor, but Iger did firmly describe the actions as “plainly a matter of retaliation.”
Then, he casually mentioned that Disney’s “plans were to invest $17 billion over the next ten years, which is what the state should want us to do.”
Finally, Iger punctuated his feelings by flatly stating, “Does the state want us to invest more, employ more people, and pay more taxes, or not?”
Photo: Getty Images
Now, we’ll watch whether DeSantis takes the bait for the trap Iger just laid.
Yes, that’s what we’re probably watching. Disney previously updated its lawsuit to include comments and actions from DeSantis…about Disney’s suing him!
Photo: Fox35Orlando.com
While anything could happen in court, most attorneys believe that Disney strengthens its case each time Florida politicians speak or vote against the Mouse.
Every action enhances the claim that the moves are retaliatory. Meanwhile, Iger keeps stressing that $17 billion figure as a demonstration of Disney’s perceived losses.
A master politician, the CEO is playing both sides here. He’s offering an olive branch in one hand while brandishing a blackjack in the other.
Why Iger Isn’t Backing Down
Photo: Miriam-Webster
Ultimately, Disney’s leadership believes in the law of the land. They understand that the actions taken by Florida legislators shouldn’t hold up in court.
Iger isn’t backing down for two very different reasons. One circles back to a conversation he had with Chris Wallace while he was ostensibly retired.
Photo: Disney
In April 2022, Iger described how he would have handled the Don’t Say Gay bill.
As I chronicled at the time, Iger believed that some issues “are not necessarily political. It’s about right and wrong.”
Photo: Wikipedia
Florida legislators punishing Disney for doing something protected by the First Amendment is fundamentally wrong to Iger.
Moreover, the CEO believes that each time DeSantis speaks on the subject, Disney’s lawsuit grows stronger.
Photo: AP
Will that prove accurate? Nobody can say for sure, but in Iger’s mind, he is setting a trap with comments like these. He’s sure that DeSantis cannot resist responding.
Iger’s philosophy here is very much where parents teach children. He believes Disney must stand up to blatant legislative bullying.
Photo:visitorlando.com
Of course, I’d be remiss if I didn’t mention that Iger also sounded tired and aggravated. It was like he couldn’t believe that the Florida Feud was still ongoing.
We all feel that way, don’t we?
Photo: MickeyBlog
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