DLRP DEBT

Started by Owain, November 21, 2006, 07:38:03 PM

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Owain

According to sources from Wikipedia, Disneyland Resort Paris are in $2 billion in debt. But still are Having new rides :idea:, Such as Space Mountain: Mission 2, Buzz Lightyears Laser Blast, Crush's Coaster, Cars Race Rally and The most Exspensive one Tower of Terror :!: . And Added Decorations, New Shops and Restaurants. But will they ever pay the Debt? What are your views on this matter ?  :?:

Owain

#1
Anyone  :?:

Anthony

#2
Oooh, it's far to complicated to go into any kind of proper detail here, it's probably something you're better off researching on your own if it interests you.  Try http://www.eurodisney.com or http://www.dlp.info/Guide/Fan-Area/History/index.html

Basically, yes - they have over $2bn of debt for many reasons, such as:
1) Too much built at opening
2) Walt Disney Studios opening cost

The debt from building the resort was immediately thrown onto Euro Disney SCA when the resort opened, and since the place didn't make as much money as The Walt Disney Company (foolishly) thought it would, they've been in debt ever since.

They had a financial restructuring in 2004 lead by then-CEO André Lacroix, which allowed for lots of things - the best of which for the fans was €240m to pay for new attractions in an attempt to get the resort on its feet again.  That's why we're getting all this new stuff recently, it's not like the resort is someone with a credit card who can't stop spending.

The debt really isn't a big secret of the resort, it's pretty much the driving force behind everything that happens there.

I think they pay the debt off a little each year, but it won't be until they start making profit (hopefully in 2-5yrs time) that big changes will happen.
...

Owain

#3
Thanks that explained alot of things to me, like how they had the money to build new rides