DeSantis allies reach settlement over who controls Disney’s governing district

Allies of Ron DeSantis reached a settlement agreement with Disney in a lawsuit over who controls Walt Disney World’s governing district, easing tensions between the entertainment giant and Florida’s governor.

Lawyers for the state had sued Disney over “11th-hour deals” that members of the district board – all company-appointed at the time – had passed before they were replaced by DeSantis appointees.

In the settlement, Disney agreed that the rules passed by the company-appointed board members are void.

Jeff Vahle, Disney World president, said in a statement that the company is “pleased to put an end to all litigation pending in state court”.

The agreement “opens a new chapter of constructive engagement with the new leadership of the district”, said Vahle, “and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the state”.

In a meeting, the members of the board of the Central Florida Tourism Oversight District approved the settlement agreement, ending almost two years of litigation that was sparked by DeSantis’s takeover of the district from Disney supporters following the company’s opposition to Florida’s so-called “don’t say gay” law.

The 2022 law bans classroom lessons on sexual orientation and gender identity in early grades and was championed by DeSantis, who used Disney as a punching bag in speeches until he suspended his presidential campaign this year.

As punishment for Disney’s opposition, DeSantis took over the governing district through legislation passed by the Republican-controlled Florida legislature and appointed a new board of supervisors. Disney sued DeSantis and his appointees, claiming the company’s free speech rights were violated for speaking out against the legislation. A federal judge dismissed that lawsuit in January.

Before control of the district changed hands from Disney allies to DeSantis appointees early last year, the Disney supporters on its board signed agreements with Disney shifting control over design and construction at Disney World to the company.

The new DeSantis appointees claimed the “11th-hour deals” neutered their powers, and the district sued the company in state court in Orlando to have the contracts voided.

Disney filed counterclaims that include asking the state court to declare the agreements valid and enforceable.

At a press conference on Wednesday, DeSantis claimed he and his allies had been “vindicated”.

“I’m glad that they were able to do that settlement,” the Florida governor said. “Those 11th-hour covenants and restrictions were never going to be valid. We knew that.”

In a statement, Charbel Barakat, vice-chairman of the Central Florida Tourism Oversight District, said it was “eager to work with Disney and other businesses within central Florida to make our destination known for world-class attractions and accountable governance”.

The company had also sued DeSantis in federal court last year, arguing that the governor was retaliating against the company for speaking out about the law, a violation of Disney’s freedom of speech. Lawyers for the state argued that lawmakers had a right to revoke special privileges it had given to the company.

In January, a Trump-appointed federal judge dismissed the lawsuit, siding with DeSantis and saying the company had no standing or merit to sue. While Disney appealed the decision in early February, the company in Wednesday’s settlement agreed to ask the appellate court to pause the appeal process, suggesting the company could eventually drop its appeal.

Associated Press contributed reporting.