The DLP Group

[norhel]

Howdy all!

Are looking on the DLP's company group overview at http://http://corporate.disneylandparis.com/corporate-responsibility/corporate-governance/index.xhtml#contentj
Was wodering, does anyone now why there are som many company that operates DLP? Why not just one?
At the website it seems that it is so many company that are in the group of DLP...

[Anthony]

Well this it the million dollar question that I can't possibly answer properly, but I guess it just has to do with the size of the project, the way you fund something like that, and the complications of an American company running a French one.

There is a mind-boggling diagram of the corporate structure here: http://corporate.disneylandparis.com/CO ... pdf#page=7

Apparently Disneyland Park is technically owned by Euro Disneyland SNC, which then leases the use of the park to Euro Disney Associés SCA! This, about the NBC convention centre, explains the way things at DLP have been funded in the past:

Centre de Congrès Newport S.A.S.

Centre de Congrès Newport S.A.S., a French simplified corporation and an indirect wholly-owned subsidiary
of TWDC, entered into a ground lease with EDL Hôtels S.C.A. pursuant to which it financed the construction
of the Newport Bay Club Convention Center. Upon completion, the Newport Bay Club Convention Center
was leased back to EDL Hôtels S.C.A.

TWDC effectively creating a company to give the resort a convention centre it can't afford.

You've taken us into a mad, mad world here norhel. :wink:

[norhel]

You've taken us into a mad, mad world here norhel. :wink:

Think I have to agree with you on that one!  

[ford prefect]

As far as I understand it the reason for having so many companies is to ensure that liabilities and assets can be sold on/disposed off or purchased with affecting other property on the site or under the auspices of DLP.

For example, the convention centre could go bankrupt and be forced out of business WITHOUT the liabilities of that segment of the resort affecting the rest of the place.

Equally, should the debt mountain grow too large Euro Disney SCA would be a sacrificial lamb.

It would enter administration and TWDC take over the running of the park, effectively eliminating the debt.

This would only happen in extreme circumstances.

It is common practice for large organisations in debt to run umpteen companies all of which could go bankrupt before the actual owners either lose money or control.

Another example is Formula 1.  A business that is billions of dollars in debt, yet has been sold by the same individual 3 times, all the while that individual (Bernie Ecclestone) remains in control!

F1 is nominally owned by the CVC group, yet the debt is split between the Topcon (Alpha thru Delta) companies.

It would appear that Disney operates in the same way.