Budget cuts at Walt Disney World

[adam.adbe]

I'm so sick of having to compensate for overseas parks sucking. Shanghai's overrun with costs? Oh well you gross billions of dollars a year I think you can handle it. This is why although I understand why he did it the biggest mistake Walt Disney made was making his company public

Not really. Someone else would have taken the company public in the interim.

 

[umichigan10]

Not really. Someone else would have taken the company public in the interim.

I mean probably but I can dream right?

 

[TheMaxRebo]

The bathrooms from TSL were cut. The slinky dog coaster was significantly changed. No more big lift hill, two launches instead of one, trenches with theming gone. Phase 3 is not looking good based on this. You can never have much faith in Disney unfortunately.

That's a bummer to hear ... I felt like the quality of that coaster would go a long way towards it being a fully fledged, really great land or just another little section / themed area

For a company with record profits that seems a bit short sighted

 

[adam.adbe]

I mean probably but I can dream right?

I think a decent number of US companies would be better served being run as non-publicy traded entities. I put that dream in a jar right next to the one about peace on Earth.

 

[umichigan10]

I think a decent number of US companies would be better served being run as non-publicy traded entities. I put that dream in a jar right next to the one about peace on Earth.

 

[umichigan10]

Very true. Just hits a lot harder when you're constantly getting shortchanged at your favorite vacation destination

 

[TheMaxRebo]

I think a decent number of US companies would be better served being run as non-publicy traded entities. I put that dream in a jar right next to the one about peace on Earth.

It's a lot harder to raise capital if you aren't public - and if you do from private equity the return demands are higher.

The parks and studios would not have developed like they did if Walt didn't agree to take the company public. The issue is that with the current low interest rate environment investors are looking for near term returns on equity holdings - though if I was a longer term player on Disney stock I would be worried about the long term prospects if they really are cutting budgets on things like the coaster in TSL. It is a long-term, performance stock, not a growth one

 

[Eoghann]

Lurker chiming in.... the key question imho is how solid were the original budgets for these projects? Were they adequately scoped (and a company like Disney should be able to do that with their eyes closed) or did they rush to put a budget together anticipating they could adjust upward on the fly? Any chance they threw a bunch of contingency / extras in there knowing that down the road they'd have to cut? Or - my worst fear - were they closer to bare bones budget from the outset? It does seem clear that project management was lacking which surprises me, especially given the LONG timelines Disney uses for construction - especially when compared to other companies (Universal obviously comes to mind). This whole thing reads like a company that was gobsmacked by cost overruns and is rushing to adjust.... and well managed projects/companies don't have surprises like this.

Unfortunately Disney has a long and inglorious track record of overshooting its budgets. The latest would be the Animal Kingdom expansion which is rumored to be way, way, way over budget. But that's not the first by any stretch. Pick a project, Disney probably went over budget on it.

 

[Eoghann]

It's a lot harder to raise capital if you aren't public - and if you do from private equity the return demands are higher.

The parks and studios would not have developed like they did if Walt didn't agree to take the company public. The issue is that with the current low interest rate environment investors are looking for near term returns on equity holdings - though if I was a longer term player on Disney stock I would be worried about the long term prospects if they really are cutting budgets on things like the coaster in TSL. It is a long-term, performance stock, not a growth one

It should be yes, but it's not being treated like one.

 

[zaccaglin]

Hopefully they'll just cut the major themed idea they had planned for the restrooms (like the tangled ones in MK) and end up with a basic themed restroom like these in Bugs Land in DCA.

 

[TheMaxRebo]

Hopefully they'll just cut the major themed idea they had planned for the restrooms (like the tangled ones in MK) and end up with a basic themed restroom like these in Bugs Land in DCA. View attachment 160233

I actually think Bugs Land is pretty well themed - even the lights, etc. ... So even if TSL has that level of themeing I think that would be fine

... now cutting back on how good of a ride the slinky dog coaster is, that is a bigger deal I think

 

[cmash95]

i dont think they can actually cut out bathrooms because of zoning but they don't need to be so heavinly themed like tangled. as far as the coaster, imagineering plans are always fluid until actual contstruction and this was supposed to be a kid coaster. It's possible that the original plans were deemed too much for the demographic they were aimed at. Also when this land was announced they were still in the planning stage and the actual budget wasn't set. now I assume it is and those big backyard toys cost money to make, not to mention how much the other ride costs

 

[adam.adbe]

... now cutting back on how good of a ride the slinky dog coaster is, that is a bigger deal I think

Yes, could that kind of tight-fistedness tend to be penny wise pound foolish. It'll cost a lot less to build a decent coaster today than it will to make up for the short-comings of an inferior coaster later. Some things can be plussed down the line. Some things you're just stuck with.

 

[TheMaxRebo]

Yes, could that kind of tight-fistedness tend to be penny wise pound foolish. It'll cost a lot less to build a decent coaster today than it will to make up for the short-comings of an inferior coaster later. Some things can be plussed down the line. Some things you're just stuck with.

That's exactly my concern - that it is putting short term gains ahead of long term success and sustainability. Though I guess despite some not being impressed with Mine Train the lines are always huge so maybe the figure making it awesome isn't that important.

But like you said, this seems like something worth putting a little extra in now and find other areas to scale back on that are easier to improve down the line

 

[zaccaglin]

I actually think Bugs Land is pretty well themed - even the lights, etc. ... So even if TSL has that level of themeing I think that would be fine

... now cutting back on how good of a ride the slinky dog coaster is, that is a bigger deal I think

Yes bugs land is very she'll themed. But the bathrooms are just a painted flat wall. Their interior has no theming either.

 

[Eoghann]

i dont think they can actually cut out bathrooms because of zoning but they don't need to be so heavinly themed like tangled. as far as the coaster, imagineering plans are always fluid until actual contstruction and this was supposed to be a kid coaster. It's possible that the original plans were deemed too much for the demographic they were aimed at. Also when this land was announced they were still in the planning stage and the actual budget wasn't set. now I assume it is and those big backyard toys cost money to make, not to mention how much the other ride costs

I'm not sure how zoning would apply here. This is an already zoned area of an existing themepark. I think they have to have a certain number of restrooms for their guests but I don't think they have to have them in each land. Making people walk around the park to get to them isn't friendly but I doubt it's against any regulations.

 

[cmash95]

its not each land but they have to be a certain distance from each other i cant remember the exact rules but right now the nearest bathrooms would be near what is now lights motor action assumung they dont dismantle them.

 

[rteetz]

The DHS streetmosphere Public Workd Dept. had their last show...

 

[justgrace]

I haven't read through all 25 pages of this thread, but it's a bummer that the U.S. parks are paying for the disasters at Shanghai.

I wonder why construction quality is so lacking? You would think Disney would have researched and chose a very reputable construction company, but apparently not.

 

[rteetz]

I haven't read through all 25 pages of this thread, but it's a bummer that the U.S. parks are paying for the disasters at Shanghai.

I wonder why construction quality is so lacking? You would think Disney would have researched and chose a very reputable construction company, but apparently not.

It's China most companies in China aren't reputable.