The Walt Disney Company (NYSE:DIS) has managed to keep its control of the district that encompasses its Florida-based resort by using a lesser-known clause that involves King Charles III.
The company used a royal lives clause to keep control of the district for “21 years after the death of the last survivor of the descendants of King Charles III, king of England".
Florida’s Republican governor, Ron DeSantis, has been embroiled in a battle with the media conglomerate since last year as the two fight for control of the district that is home to Disney World.
DeSantis has gained popularity for his 'anti-woke' views Source: AP
The Reedy Creek Improvement District (RCID) is a special area in the state of Florida that operates within its own regulation and until last month had a board of supervisors decided by the landowners.
Disney owns two-thirds of the land in RCID and hand-picks a small number of people to reside there, according to a report by Forbes.
However, in February DeSantis replaced this board with his own version called the Central Florida Tourism Oversight District (CFTOD) to help regain control of the area.
Yet, a day before the CTFOD took charge the former board signed a binding agreement using the royal lives clause to keep the district in control of Disney.
“We are going to have to deal with this and correct it,” board member Brian Aungst said, calling Disney’s actions “a naked attempt to circumvent the will of the voters and the will of the Florida Legislature”.
The royal lives clause is rarely used in the US but has been active since the 17th Century and is a “common way of ensuring that a trust could continue for as long as legally possible,” law firm Birketts said.
The battle for control of RCID started when Disney criticised a state law, dubbed the “Don’t Say Gay” bill after it was passed by DeSantis last year.
The measure aims to reduce teachings of sexual orientation and gender identity for pupils under ten years old.
While for DeSantis this fight has brought his name into consideration for the next Presidential race, for Disney, it is about keeping control of the US$13.4bln district and the benefits that come with it.
Close to US$31mln of the district’s 2023 budget is set to be used for repairs and maintenance whilst US$28.8mln is set aside each year for the district's facility department.