How Much Could the Park Shut Down Cost Disney?

We keep discussing how the shut down could cost Disney far more than we all realize.

Here are some numbers according to Park Expert Duncan Dixon:

If you have 40,000 employees it could cost Disney $32 million per week to cover just hourly employees.

 

Christopher Heath brought up that those expenses won’t be the only losses faced.

 

Of course people point out that Disney should be “insured” and likely they are, but other locations were too and they are being told their losses would not be covered because of the nature of the loss.

Hopefully that will not be the case with Disney parks, but there hasn’t been any confirmation one way or another yet.

Look Disney is a big company and it does have some cash reserves, but their two biggest sectors, the parks and media/studio, have just taken a big hit. Hopefully they can pick up some of that with Disney+ or in advertising on their networks.

Of course this doesn’t mean Disney is going to be bankrupt. But it’s too soon to see how much damage has been done. The stocks plummeted over not only the Coronavirus but the CEO shuffle and the fact that they weren’t going to have a bunch of billion dollar blockbusters this year. Then Disney+, even though it has a lot of subscribers, is not going to be profitable for years so that’s a drain as well.

We also don’t know how it will affect all the Disney Owned Companies. Perhaps some will be sold off or some could rise up to pull in more to help offset the losses.

I don’t think people realize how many companies the Walt Disney Company owns:

This is going to have repercussions for a long time and we will have to wait and see what they are, but it would be short sighted to claim that this isn’t going to cause damage to Disney’s bottom line.

What do you think? Comment and let us know.

Source: Twitter, Cartoon Brew, Seeking Alpha 


Pirates & Princesses (PNP) is an independent, opinionated fan-powered news blog that covers Disney and Universal Theme Parks, Themed Entertainment and related Pop Culture from a consumer's point of view. Opinions expressed by our contributors do not necessarily reflect the views of PNP, its editors, affiliates, sponsors or advertisers. PNP is an unofficial news source and has no connection to The Walt Disney Company, NBCUniversal or any other company that we may cover.