April 20, 2022

Disney's wokeness could lead to financial pain

Disney has gone full woke.  There's been a backlash among parents and they are potentially facing a decline in visitors to the theme parks.  It's going to get worse for them financially as Florida governor Ron DeSantis is going after their special tax status in that state.  

Disney can't exactly pull up stakes and move the Disney World parks to a liberal state.  The cost would be enormous but beyond that, there aren't many year-round warm climate states in the leftist-liberal column. California?  Already has a Disney Park.  Nevada?  Trending right but it also has Las Vegas already and is not as child friendly a state (even though that apparently doesn't matter much to Disney anymore).  Colorado is too cold, Virginia is a semi-swing state and also too far north.  That leaves 3 possible states as far as I can tell; Hawaii (way too far west, and way too expensive a destination by comparison), Georgia (still very much conservative despite the 2020 election cycle) and New Mexico, which has an infrastructure problem (airports, roads, population are all difficult by comparison).

Now that's not to say the move would be impossible to any of those options, just difficult, costly and time consuming.  Of course Disney could opt for another conservative state instead in the hopes that the target state would just be glad for the smaller incremental tax revenue, the tourists and the potential for economic and population growth.  That would preclude a state like Texas that could stand on principle and offer the same deal Florid is considering adapting for Disney. Still, any 'smaller' conservative state would still present the same problems as New Mexico, plus potentially be another Florida down the road by removing the special tax status of the theme parks.  In fact, they'd be better to accept it for a 3 or 5 year window and then switch it back to standard taxation.  Disney would have to move again, or suck up the tax hit.

The point is, Disney's get woke changes won't make them go broke, but they will come to recognize that they are not impact-free when it comes to their poor decision-making.

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