Raphael Stevens

Disney amended its federal lawsuit against Florida Gov. Ron DeSantis to focus solely on its First Amendment claim that the governor politically retaliated against the company.
Disney last week had asked to drop its other claims in the case because they are being actively pursued in a separate state-level lawsuit in Florida.
It’s the latest wrinkle stemming from Disney’s battle with DeSantis that began when the company publicly denounced the controversial classroom bill dubbed “Don’t Say Gay” by critics.

Disney on Thursday amended its federal lawsuit against Florida Gov. Ron DeSantis to focus solely on its First Amendment claim that the governor politically retaliated against the company.
Disney last week had asked to drop its other claims in the case, which concern a dispute over Walt Disney World’s development contracts, because they are being actively pursued in a separate state-level lawsuit in Florida.

“We will continue to fight vigorously to defend these contracts, because these agreements will determine whether or not Disney can invest billions of dollars and generate thousands of new jobs in Florida,” a Disney spokesperson said in a statement to CNBC.
Read more: Inside the epic CEO succesion mess at Disney
The revision, which nixes four claims Disney had previously presented in the case, shrinks the company’s federal civil complaint to 48 pages, down from 84 in the prior version.
Disney had already amended its lawsuit once in May to accuse DeSantis and his allies of doubling down on their attacks.
The second amended complaint filed Thursday afternoon is the latest legal wrinkle in Disney’s two lawsuits stemming from its protracted battle with DeSantis that began last year, when the company publicly denounced the controversial classroom bill dubbed “Don’t Say Gay” by critics.

DeSantis has leaned into culture-war battles as governor and on the campaign trail, as he seeks the 2024 Republican presidential nomination. He has tarred Disney with the politically loaded term “woke” and accused the company of “sexualizing children” — a claim Disney CEO Bob Iger called “preposterous and inaccurate.”

After Disney came out against the bill, which limits classroom discussion of sexual orientation and gender identity, DeSantis and his allies targeted the special tax district that had allowed Disney to effectively self-govern its Orlando-area theme parks for decades.
The governor signed measures changing the district’s name — from Reedy Creek Improvement District to Central Florida Tourism Oversight District — and replacing its five-member board of supervisors with his own picks.
Read more: Don’t bet on Apple buying Disney
Before the new board took charge, Disney crafted development contracts that it said were intended to secure its future investments in Florida. In April, the DeSantis board voted to nullify those contracts, prompting Disney to file its federal lawsuit.
The board countersued in state court in Orange County days later.

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Following Disney’s latest amendment to its federal complaint, the board said it was “pleased that Disney backtracked on these legal claims against the district in their federal case.”
“Disney’s latest legal move puts them in line with the position of what the district has been advocating for months now: that these matters should be decided in state court. We hope this helps expedite justice for the people of Florida,” said Alexei Woltornist, a spokesman for the district, in a statement to CNBC.
In the state-level case, Disney has filed counterclaims — including a breach of contract claim — and is seeking damages against the board. Earlier Thursday, the board asked that court to dismiss Disney’s counterclaims. More

Steve Cohen has acquired the rights to a New York team in the TGL league.
TGL is a new primetime, high-tech golf league that will tee off in January 2024 in Palm Beach, Florida.
TGL will operate in partnership with the PGA Tour.

New York Mets owner Steve Cohen speaks to the media before a game against the Milwaukee Brewers at Citi Field in New York City, June 28, 2023.
Jim Mcisaac | Getty Images

Financier and Mets owner Steve Cohen has bought the founding rights to the New York team in Tiger Woods and Rory McIlroy’s upstart golf league TGL, the organization announced Thursday.
Cohen’s team will be managed by his family office Cohen Private Ventures. It will begin competition in TGL’s inaugural season next year.

“As golf continues to grow in popularity, there’s a demand for enhanced access to the sport and the world’s top players. … We’re excited to be a part of TGL and build a team that makes New York proud,” Cohen said in a statement.
Financial terms of the deal were not disclosed.
TGL is a new primetime, high-tech golf league that will tee off in January 2024. The league has attracted mega star power. Top players who have committed to participate include Woods, McIlroy, Jon Rahm, Justin Thomas, Collin Morikawa, Matt Fitzpatrick, Justin Rose, Adam Scott, Xander Schauffele, Max Homa, Rickie Fowler and Billy Horschel.
TGL will operate in partnership with the PGA Tour — the tour is an investor in it — and players will be able to participate in both leagues. TGL says the event timing will be complementary to the players’ PGA Tour schedules.
The launch of TGL comes as professional golf is at a major crossroads. The PGA Tour and fledgling rival LIV Golf agreed to merge in June but have yet to sign a final agreement and still face scrutiny from Congress. A Senate hearing is expected on the matter next week.

Mike McCarley, CEO of TMRW Sports, left, and Rory McIlroy of Northern Ireland smile as they speak about the TGL golf league concept during a press conference prior to the TOUR Championship, the third and final event of the FedEx Cup Playoffs, at East Lake Golf Club in Atlanta, Aug. 24, 2022.
Keyur Khamar | PGA Tour | Getty Images

The new league will operate with six teams of three PGA Tour players in head-to-head match play in a venue being built on the campus of Palm Beach State College in Florida.
While Cohen will own the rights to the New York team, all events will take place in Florida. However, the league plans to tap into golf and sports audiences in the New York market with events, community outreach and the use of technology to build fan bases. 
A media deal for the league has not yet been announced, but a source told CNBC that one is expected to be finalized soon.
Cohen’s ownership group is the fourth for TGL. Other ownership groups include Falcons owner Arthur Blank, Fenway Sports Group, tech founder Alexis Ohanian and tennis stars Serena and Venus Williams. Other investors in the league include basketball great Stephen Curry, race car driver Lewis Hamilton, women’s soccer player Alex Morgan, pro football’s Tony Romo and Josh Allen as well as singer Justin Timberlake.
“The addition of New York as a TGL team not only continues the success of adding major markets to TGL, but also adds an ownership group with strong ties to other major league teams and fanbases. Steve Cohen’s ability and willingness to operate, promote and market this team to New York fans is a significant step as we build toward the launch of TGL in January,” said Mike McCarley co-founder of TMRW Sports, the company operating TGL.
Cohen is the chair of asset management firm Point72. The lifelong baseball fan purchased Major League Baseball’s New York Mets in 2020 and serves as chair and CEO of the team.
The Mets have struggled this season despite entering the year with the league’s highest payroll. They sit in second-to-last place in the National League East. More

Charter Communications is still not budging in its dispute with Disney. “At the end of the day, it’ll be Disney who decides,” CEO Chris Winfrey said Thursday.
Last week, Charter and Disney’s dispute led to millions of pay TV customers losing access to networks like ESPN during the U.S. Open and with the NFL season kicking off.
Charter is pushing for a change that would see Disney’s ad-supported streaming services offered to customers for free.

Sopa Images | Lightrocket | Getty Images

The kickoff to the NFL season is Thursday night, and Charter Communications doesn’t appear to be moving down the field in its negotiations with Disney.
Last week, Charter and Disney’s talks over contract fees spilled into the public when they were not able to reach an agreement and millions of consumers across the U.S. saw Disney-owned networks like ESPN and FX go dark.

On Thursday, Charter CEO Chris Winfrey said that “Disney will be who decides” what happens in the dispute.
“Sitting here today, if I had anything material to highlight I would, so that should tell you something on how we’re doing,” Winfrey said at the Goldman Sachs’ Communacopia and Technology conference, regarding the state of the negotiations as the beginning of the NFL season nears. He added both companies feel a sense of urgency to resolve this quickly.
Disney’s latest statement also indicated that the stalemate persists.
“It’s unfortunate that Charter decided to abandon their consumers by denying them access to our great programming,” Disney said Thursday. “The question for Charter is clear: Do you care about your subscribers and what they’re telling you they want — or not? Disney stands ready to resolve this dispute and do what’s in the best interest of Charter’s customers.”
Winfrey on Thursday said both Charter and Disney’s customers were caught in the crosshairs of this fight.

Disney added that Charter, one of the biggest pay TV providers in the U.S., has rejected multiple offers to extend negotiations before the blackout on Aug. 31.
Adding to the pressure is the kickoff of the NFL season — with ESPN’s first “Monday Night Football” game of the season occurring in a few days — as well as the U.S. Open and the beginning of college football season.
“Disney is the linchpin. ESPN is the linchpin,” Winfrey said Thursday of the cable bundle. “They have the opportunity to lead here and drive the industry. And if it works, it’s going to be because of them.”
Disney executives have said it’s a matter when, not if, ESPN is available as a direct-to-consumer streaming service outside of the bundle. Currently, ESPN+ offers its own exclusive content and games, with some overlaps from the TV network, such as some “Monday Night Football” broadcasts.

SportsCenter at ESPN Headquarters.
The Washington Post | The Washington Post | Getty Images

To bundle or not bundle sports?

Carriage fights and blackouts are not uncommon in the industry. But Charter’s proclamation about the pay TV model and push for programmers like Disney to make their streaming services available to cable customers at no additional cost has sent shock waves through an industry grappling with cord-cutting as streaming remains an unprofitable business.
A similar dispute has ensnared satellite-TV provider DirecTV and broadcast station owner Nexstar Media Group this summer. With many NFL games being offered, it could leave millions more consumers without access to the first games of the season.
But in a rare move, Winfrey and Charter executives held an investor call the day after Disney channels went dark for its customers. Executives said they pushed for a revamped deal with Disney that would see Charter’s Spectrum cable customers receive access to Disney’s ad-supported streaming services Disney+, ESPN+ and Hulu at no additional cost.
This seems to be the sticking point in negotiations. Charter said it was willing to pay the increase requested by Disney.
Winfrey said Thursday a big issue with content companies like Disney has been that they are focused on streaming “as if it’s a completely separate business” when much of companies’ cash flow stems from the traditional pay TV bundle.
Last week, Winfrey put the media industry on notice when he said the pay TV model is broken and needs to change in order to survive.
Disney has shot back, saying Charter refused to enter into a deal after it offered favorable terms, without elaborating on specifics. The company also added that its traditional TV networks and streaming services aren’t the same and therefore shouldn’t be offered for free to cable TV customers.
Live sports have continued to garner the highest ratings and are considered to be the glue holding the pay TV bundle together.
“If you had an environment where we no longer carry Disney content, which is becoming more and more of a potential reality, you have to say … what other additional sports content would you renew? At that point, there is very little,” Winfrey said Thursday.
With less sports content, he said, there would be a smaller base of cable customers but also a smaller package of mostly general entertainment content at a cheaper price. Charter could then sell separate streaming subscriptions to customers who still want sports content.
Charter already made a step in this direction earlier this summer when the company announced it would offer a cheaper, sports-lite bundle without regional sports networks.
Sports often drive up the cost of pay TV and streaming subscriptions due to the rights fees media companies pay the leagues and teams to carry games on-air. This has been a key theme in this year’s bankruptcy filing of Diamond Sports Group, the largest owner of regional sports networks.
Meanwhile, Disney has pushed for Charter’s customers to sign up for alternative internet-TV bundles like its own Hulu +Live TV, as well as competitors like Fubo or YouTube TV.
“Disney deeply values its relationship with its viewers and is hopeful Charter is ready to have more conversations that will restore access to its content to Spectrum customers as quickly as possible,” Disney said in a statement over the weekend. “However, if you are one of these frustrated customers, it can be infuriating to not be able to access the content you want.”
Since the dispute began last Thursday, Hulu + Live TV sign-ups are more than 60% higher than expected, a Disney Entertainment spokesperson said.
As more of Charter’s customers leave the bundle for alternative options, Winfrey said the incentive to get a deal done only lessens as the remaining customers likely won’t care to watch sports. More

Walmart has cut the starting pay for store employees who stock shelves and prepare online orders.
The discounter had hiked pay for those workers in March 2021, as e-commerce sales were soaring.
As the nation’s largest private employer, Walmart is closely watched by economists for signs of slowing inflation or a cooler labor market.

A worker stocks the shelves at a Walmart store on January 24, 2023 in Miami, Florida. Walmart announced that it is raising its minimum wage for store employees in early March, store employees will make between $14 and $19 an hour. 
Joe Raedle | Getty Images News | Getty Images

Walmart has cut starting pay for new store employees who pick and pack online orders and stock shelves, raising questions of whether companies face a cooling labor market or are adjusting to a return to pre-pandemic shopping habits.
The retailer confirmed that starting wages were reduced in July for personal shoppers and stockers who now join the company. Those workers help prepare orders for curbside pickup or delivery to customers’ homes and replenish store shelves.

New Walmart employees who join the digital or stocking teams now make about a dollar-an-hour less than they would have if hired several months ago.
Walmart spokeswoman Anne Hatfield said no current employees in those roles had their pay cut. As part of the change in July, Walmart also tweaked pay bands for more experienced employees, leading to a wage raise for approximately 50,000 store employees, she said.
Walmart, as the biggest private employer in the U.S. with 1.6 million people, is a closely watched company for economists and industry leaders — including many who have scoured for signs of whether inflation of wages and of merchandise is cooling. It had hiked its minimum wage for store employees from $12 to $14 in January, as the labor market remained tight and its pay trailed behind rivals like Amazon and Target.
Hatfield declined to say if the company has seen it become easier to hire.
In a statement, Walmart said it made the change so its starting pay was consistent, whether a store employee worked at the cashier, stocked shelves or helped with online orders.

“Consistent starting pay results in consistent staffing and better customer service while also creating new opportunities for associates to gain new skills from experience across the store and lay the groundwork for their career regardless of where they start,” the statement said.
The news of wage changes was first reported by The Wall Street Journal.
The higher pay took effect in March 2021 for Walmart’s personal shoppers and stockers. It raised wages for 425,000 employees, making their starting rates range from $13 to $19 per hour, based on the store’s location and market.
With the move, Walmart treated those employees more like specialists. It also has higher starting pay for some other roles, such as employees who decorate cakes in its bakery or change oil in its auto centers.
At the time of the change, the big-box retailer was seeing higher grocery and e-commerce sales. More Americans were getting vaccinated for Covid-19 and springing for items to help them get out and about again, such as teeth whitener.
In a company memo announcing the change at the time, Walmart U.S. CEO John Furner cited the sharp growth in company sales. Along with seeing overall sales grow, he said the company picked 6 billion items for pickup and delivery in the previous year and had to move fast to keep up with fast-changing customer shopping habits.
Many retailers have seen shoppers return to more typical pre-pandemic shopping habits like visiting stores more and shopping less online — along with being more discerning about discretionary purchases. That’s led to declining e-commerce sales at companies including Macy’s and Target.
Walmart has continued to put up strong online sales growth. E-commerce sales for Walmart U.S. jumped 24% year over year in the fiscal second quarter, its most recently reported three-month period. But that is not as dramatic as the gains that the company posted during the early years of the pandemic.
Shares of Walmart touched a 52-week high on Thursday. So far this year, Walmart’s shares are up about 15%, just shy of the gains of the S&P 500 but ahead of many other retailers. More