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  • [Question] Where does the money go?

    I'm not sure if this has been posted before in a specific thread ... (if it has, please direct me to it) but I am very curious as to where all of this money from the recent increase in ticket and pass prices is going. Is it going towards the new cast members and paying off the expansion? Paying for the new expansion?
    Other than weeding out the annual passholders (ouch), has there been a representative from Disney that has specifically stated where this money is going?

  • #2
    Re: Where does the money go?

    It goes into a big pot. Out the pot money goes to paying dividends to shareholders, interest on debt, investing in new properties and projects, compensating employees, overhead expenses, political contributions, executive bonuses.......Any money left stays in the pot for future use.
    Be Cool Stay in School!
    Next year I'm trying for a summer internship at Stark Industries.

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    • #3
      Re: Where does the money go?

      The big pot thing is a good way of looking at it. Another good way of looking at it is......it goes into controlling the Resort's attendance levels.

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      • #4
        Re: Where does the money go?

        Wonder how much of it goes directly into Bob Iger's pocket...

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        • #5
          Re: Where does the money go?

          Maybe it's going into building more Disney World's hotels since their Florida parks are crap. Trust me when I say, you guys in California have the best Disneyland there is, and unlike the Florida parks, Disneyland is worth the money.

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          • #6
            Re: Where does the money go?

            Originally posted by DisneyIPresume View Post
            Wonder how much of it goes directly into Bob Iger's pocket...
            Well lets just say he made 53M in 2011, and Disney made 5.5B. If profit was flowing at the same rate from everywhere. Each dollar spent puts a penny in his pocket.
            Be Cool Stay in School!
            Next year I'm trying for a summer internship at Stark Industries.

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            • #7
              Re: Where does the money go?

              Originally posted by Aotphks View Post
              Maybe it's going into building more Disney World's hotels since their Florida parks are crap. Trust me when I say, you guys in California have the best Disneyland there is, and unlike the Florida parks, Disneyland is worth the money.
              Oh come on now! Disney World is still great!! Just because certain aspects of it aren't as great as Disneyland doesn't mean it's crap. I loved it at least. Definitely going again!

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              • #8
                Re: Where does the money go?

                Originally posted by DisneyIPresume View Post
                Wonder how much of it goes directly into Bob Iger's pocket...

                80% haaa! just kidding.. i don't really know!



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                • #9
                  Re: Where does the money go?

                  As I understand it, it goes into saying, "look, we have all these profits!!!", which somehow makes the stock go up. Maybe. Unless people think it's going to go down. Because then it goes down.
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                  Part 1: http://www.youtube.com/user/animagus.../1/q1j7FU8QXu0
                  Part 2: http://www.youtube.com/user/animagus.../0/sasNTMDRBLU

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                  Part 3: http://www.youtube.com/watch?v=G3Vea...feature=relmfu


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                  • #10
                    Re: Where does the money go?

                    Originally posted by animagusurreal View Post
                    As I understand it, it goes into saying, "look, we have all these profits!!!", which somehow makes the stock go up. Maybe. Unless people think it's going to go down.
                    Wow! is that how the stock market works? kinda like rich people use it to scare us or make the rest of us happy? I feel like I get it now.... THANKS!!!

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                    • #11
                      Re: Where does the money go?

                      Originally posted by Sunshine711 View Post
                      Wow! is that how the stock market works? kinda like rich people use it to scare us or make the rest of us happy? I feel like I get it now.... THANKS!!!
                      I joke around, but I really don't get the correlation between profits and the stock market. For example, I read that DreamWorks stock fell after How to Train Your Dragon made less than expected on its opening weekend, but the movie was ultimately a big hit, so it seems like it's more about perception than how the company is actually doing. And yet profits still seem to be really, really important to companies because of the stock market.
                      "Happy Working Song" parody for DCA remodel: http://www.youtube.com/watch?v=x-TYESfNTP8&feature=plcp

                      Retro Rant Review of "The Hunchback of Notre Dame II" (comedy review of direct-to-video
                      Disney sequel):
                      Part 1: http://www.youtube.com/user/animagus.../1/q1j7FU8QXu0
                      Part 2: http://www.youtube.com/user/animagus.../0/sasNTMDRBLU

                      Retro Rant Review of "Home on the Range" (comedy review of Disney movie):
                      Part 1: http://www.youtube.com/watch?v=J7mC-...feature=relmfu
                      Part 2: http://www.youtube.com/watch?v=qoUie...feature=relmfu
                      Part 3: http://www.youtube.com/watch?v=G3Vea...feature=relmfu


                      Visit my site: http://www.vividgroovy.com



                      Pratfall the albatross superheroine visits the Carthay Circle Theatre.

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                      • #12
                        Re: Where does the money go?

                        Originally posted by animagusurreal View Post
                        I joke around, but I really don't get the correlation between profits and the stock market. For example, I read that DreamWorks stock fell after How to Train Your Dragon made less than expected on its opening weekend, but the movie was ultimately a big hit, so it seems like it's more about perception than how the company is actually doing. And yet profits still seem to be really, really important to companies because of the stock market.
                        the reason it fell was because the stock price was already "priced" with the expectation that the movie would do erally realyl well. ultimately the stock market is a moshpit of mass psychology, finances, fundamentals, and insiders gaming the system. yes profits are really really important though for a "value" company like disney because the play a role in how the stock does, since a stock price is theoretically the value of a company's future profits (discounted). and high stock prices make everyone happy. to give a lil history on disney and stock prices and why management cares so much:

                        84 - disney profits are weak, stock is garbage, and because stock is garbage a lot of finance ppl wanted to raid disney and spin off all the components, shareholders led by roy revolt, eisner/wells come in and replace miller
                        2004 - disney profits are iffy, stock is garbage, and because stock is low comcast wanted to take over disney, shareholders led by roy revolt, iger replaces eisner

                        thus management wants to make sure profits are nice and stock is doing super duper. this is true for every value company.

                        BTW raising prices on the parks is one of the sure-fire ways of disney improving their profits - this is what eisner did when he took over that led to a HUGE amount of the improvement in disney profits (and the stock price from 84 to 94). i would imagine part of the reason this time around was to compensate for losses in other divs (john carter mayhaps?).

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                        • #13
                          Re: Where does the money go?

                          Oh to be a fly on the wall at the meetings where it is decided who gets a little more scratch to conduct their business. The company is divided into multiple divisions and subdivisions, with varying needs/goals/desires that could use a little extra ... then there's the issue of salaries/bonuses, purchases of better quality supplies/contracting out/physical park improvements, etc.

                          It would be nice, however, if customers of the Walt Disney Company realize a tangible benefit in the products they consume.
                          "She's taking everything. She's taking the house, she's taking the kid, she's taking the dog. IT'S NOT EVEN HER DOG. IT'S MY DOG! SHE'S TAKING . . . MY DOG!"
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                          • #14
                            Re: Where does the money go?

                            All that money goes to customer service training and employee retention, of course. A huge chunk of it is given to the employees to boost morale and hold special events like holiday parties. They wouldn't waste it all on frivolous things like executive bonuses, would they?
                            "Greetings, Starfighter! You have been recruited by the Star League to defend the Frontier against Xur and the Ko-Dan Armada."

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                            • #15
                              Re: Where does the money go?

                              Originally posted by calsig31 View Post
                              All that money goes to customer service training and employee retention, of course. A huge chunk of it is given to the employees to boost morale and hold special events like holiday parties. They wouldn't waste it all on frivolous things like executive bonuses, would they?
                              Originally posted by swampymarsh View Post
                              Well lets just say he made 53M in 2011, and Disney made 5.5B. If profit was flowing at the same rate from everywhere. Each dollar spent puts a penny in his pocket.
                              Simple definition: Profit is the money left over after taking the money from customers and paying the bills.

                              These numbers I used are real. Iger, one person, getting 1% of the profit. Although that isn't exactly true, his compensation is a cost of the company, one of the bills it has to pay. This is an example that is often used to show excessive excutive compensation. Iger gets 1% the rest of the company over 140,000 people split the rest.

                              Originally posted by animagusurreal View Post
                              As I understand it, it goes into saying, "look, we have all these profits!!!", which somehow makes the stock go up. Maybe. Unless people think it's going to go down. Because then it goes down.
                              Originally posted by Sunshine711 View Post
                              Wow! is that how the stock market works? kinda like rich people use it to scare us or make the rest of us happy? I feel like I get it now.... THANKS!!!
                              Profit is a simple way to value stock prices. These are not really numbers.
                              There is a price to earnings ratio. Price of a share, to the earnings(profit) per share. Let say that the Price to Earnings ratio is 10/1, 10. This PE ratio is not made up, it's assigned to a company by looking at how a company perform compared to pier groups. That is if all media companies(what Disney really is) have PEs of 10, Disney should too.

                              If Disney's PE is 10 and it profit is $1 per share, it's price should be $10. If Disney makes $2 next year per share, it's PE is 10, it's price will go upto $20.

                              It is the profit per share which sets the stock price. However there are a lot of other things that go into valueing the actual stock price.


                              You can find where the money goes. However it's not as definite as Popcorn and T shirts pay for sweeping the street. You can't find out what Disneyland makes or spends. You can find out what Parks and Resorts, all of the hotels, DVC, themeparks an cruise ships make. You can find out some of what is spent on Parks and Resorts. It doesn't breakdown to finite costs, and profits. Only big pots of money per division at best. Look for a Disney Company Annual Report.
                              Be Cool Stay in School!
                              Next year I'm trying for a summer internship at Stark Industries.

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                              • #16
                                Re: Where does the money go?

                                Iger's total compensation is $53.3 million.

                                If an entry-level Disneyland employee starts at $8.23 per hour and works 2,000 hours per year, that's a gross annual pay of $16,460.

                                Thus in that year Iger was paid 3,238 times the amount the entry-level employee was paid.

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                                • #17
                                  Re: Where does the money go?

                                  Originally posted by AkaneKaminga View Post
                                  I'm not sure if this has been posted before in a specific thread ... (if it has, please direct me to it) but I am very curious as to where all of this money from the recent increase in ticket and pass prices is going. Is it going towards the new cast members and paying off the expansion? Paying for the new expansion?
                                  Other than weeding out the annual passholders (ouch), has there been a representative from Disney that has specifically stated where this money is going?
                                  I can't speak for DL, but everything is costing more and more. I use to work at a major Northern Nevada Hotel and casino (Harveys Lake Tahoe) and out electric bill for one month almost $250,000. I would guess DL's electric bill is well over $2,000,000 per month. Add up all utilities and it is no wonder it costs so much.
                                  THIS SPACE FOR SALE OR LEASE





                                  PRESIDENT OF THE DISNEYLAND LOOP LOVERS ASSOCIATION

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                                  • #18
                                    Re: Where does the money go?

                                    ho much roughly does a CM get paid?



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                                    • #19
                                      Re: Where does the money go?

                                      Originally posted by Bob Weaver View Post
                                      Iger's total compensation is $53.3 million.

                                      If an entry-level Disneyland employee starts at $8.23 per hour and works 2,000 hours per year, that's a gross annual pay of $16,460.

                                      Thus in that year Iger was paid 3,238 times the amount the entry-level employee was paid.
                                      I see nothing wrong with this. There is a reason Disney is paying that amount of money. It's because he's doing his job right. Typical CM jobs can be filled quite easily... but it takes a certain skill set to steer a multi-million dollar company into profitable margins during rough economic times. If he wasn't keeping Disney happy, he wouldn't be there.

                                      Now as for how much Disney pays their CMs, the only way to change that is to force their hand. If you don't like your pay, find another job. If enough CM's joined together, they could get this changed. Not sure how much money Disneyland would lose if they were forced to stay closed for one business day, but I bet it makes more business sense to negotiate with their CM's than to play hardball.

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                                      • #20
                                        Re: Where does the money go?

                                        Originally posted by tahoebob54 View Post
                                        I can't speak for DL, but everything is costing more and more. I use to work at a major Northern Nevada Hotel and casino (Harveys Lake Tahoe) and out electric bill for one month almost $250,000. I would guess DL's electric bill is well over $2,000,000 per month. Add up all utilities and it is no wonder it costs so much.
                                        this is a good point. i personally think it would be super interesting to actually see a monthly utility bill for disneyland.

                                        "oh, i just love happy endings!"




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