Why Don't Disney Do ROFR Before Resale

[KAT4DISNEY]

Funny thing about ROFR, when Disney waives its right, it records a notice with the county-

From 01/01/2017 to 05/01/2017, DVD recorded 2300+ notices-
From 01/01/2018 to 05/01/2018, DVD recorded 3000+ notices-
From 01/01/2019 to 05/01/2019, DVD recorded 32 notices

While they are behind on reviewing the contracts and may be a bit slow on recording, that seems a bit of a drop-off.

They stopped the requirement for ROFR to be filed with the county. It still can be done but no longer has to be done. It changed last year some time.

 

[KAT4DISNEY]

I think you miss understood my Win Win, for example, Disney sold Saratoga Springs back in the day and made profit on those points it sold, then today they could buy back at 100 dollars and then they are reselling them for 160 dollars, reselling the points they made money on the first time so win one, buy them and then resell them for a profit win two, so win win.

That’s peanuts compared to what they make selling their new resorts.

 

[Jkarrows]

That’s peanuts compared to what they make selling their new resorts.

Possibly, but possibly not, the new resorts have higher build costs so the points will be higher then they were before, you may find the actual percentage years ago is the same as it is today just it's higher due to everything else costs more.

 

[Dean]

Possibly, but possibly not, the new resorts have higher build costs so the points will be higher then they were before, you may find the actual percentage years ago is the same as it is today just it's higher due to everything else costs more.

The developer cost (land plus build) as a % of the projected total sale price may be very similar but I suspect it's actually a smaller % now than with past resorts because they can. Points per unit are generally much higher and price per point is much more. Generally with timeshares you figure roughly 50/50 and with early resorts it was likely more to build as a % of sales (certainly true for HH & VB) but I suspect they have pushed the profit as a % of the total up over time, esp over the last 7-8 years as a function of travel and demand.

 

[jaggies]

Jkarrows, you asked a question, and many people have taken the time to give you thoughtful answers, but you just say you “agree to disagree” with all of them and keep on insisting you’re on to something here. It’s difficult to believe you’re asking in good faith for an explanation when you dismiss a bunch of valid answers.

Consider that Disney isn’t currently operating as you describe, so clearly they have some reason for not doing things your way. I don’t know why you’re dismissing everyone’s answers to your question. It seems more like you’re making an implicit argument that Disney should do things your way, without actually coming out and saying it, perhaps because you know it would be difficult to defend such a position.

Consider also that some of the posts you “agree to disagree” with aren’t just guesses or hunches but based on well-understood economic principles about how markets work.

 

[Dean]

Jkarrows, you asked a question, and many people have taken the time to give you thoughtful answers, but you just say you “agree to disagree” with all of them and keep on insisting you’re on to something here. It’s difficult to believe you’re asking in good faith for an explanation when you dismiss a bunch of valid answers.

Consider that Disney isn’t currently operating as you describe, so clearly they have some reason for not doing things your way. I don’t know why you’re dismissing everyone’s answers to your question. It seems more like you’re making an implicit argument that Disney should do things your way, without actually coming out and saying it, perhaps because you know it would be difficult to defend such a position.

Consider also that some of the posts you “agree to disagree” with aren’t just guesses or hunches but based on well-understood economic principles about how markets work.

You can bet they've vetted these issues from every angle over the years and continue to do so periodically. While it's not a set pie size there are only so many people who will consider a timeshare and have the funds to proceed. Plus the % that will only buy X resort is very small, probably about 10% of those that say that's the position if it comes down to the new resort or nothing.

 

[Jkarrows]

Jkarrows, you asked a question, and many people have taken the time to give you thoughtful answers, but you just say you “agree to disagree” with all of them and keep on insisting you’re on to something here. It’s difficult to believe you’re asking in good faith for an explanation when you dismiss a bunch of valid answers.

Consider that Disney isn’t currently operating as you describe, so clearly they have some reason for not doing things your way. I don’t know why you’re dismissing everyone’s answers to your question. It seems more like you’re making an implicit argument that Disney should do things your way, without actually coming out and saying it, perhaps because you know it would be difficult to defend such a position.

Consider also that some of the posts you “agree to disagree” with aren’t just guesses or hunches but based on well-understood economic principles about how markets work.

Sorry what i agree to disagree on is working out the costs Vs build Vs points value not the question i asked.

Never dismissed anyone's views as everyone has a view on why and why not, i was just asking the question, sorry if you appear to think otherwise.

Disney do not do anything that would lead to a loss, that's the point i was making on the ROFR, others appear to think otherwise, hence why i agree to disagree on this point.