The team at Acquire Procurement Services recently attended the Harvard Law School Negotiation and Leadership Program in Boston, Massachusetts. Run by a consortium based at Harvard University, the program examined core decision-making challenges, analysed complex negotiation scenarios, and provided a range of competitive and cooperative negotiation strategies to be used in both private and public negotiation environments.
How much would you pay for AFL superstar Brent “Boomer” Harvey?
One of the exercises during the Program involved acting as the agent for a sports star to negotiate the possibility of them returning to one of the top sporting clubs to play out their years. Consider what it would be like if North Melbourne, after a miserable 2017 season plagued by injuries to some of their key players, began conversations with Brent Harvey to come back to the club. Brent while in his ‘golden’ AFL years, has averaged 40 possessions for the year in the VFL and has never felt better.
So what would you ask for? When all your client wants to do is play? How high a salary would you be seeking?
Considering the interests of both parties
The team at Acquire were successful in representing their sports superstar, however when it came down to salary specifically, the figures ranged between $20k and $200k (10x). While some might see this as an issue, we see it as good negotiation and a fair representation of the various way to structure an agreement to meet the needs of your client and their suppliers.
What most participants missed, was that this negotiation, like most, involved shared interests. When you start thinking about the clubs interest (e.g. ticket sales, leadership and mentoring, salary cap) and combine this with your clients (e.g. sponsorship deals, game time and social standing), you have an opportunity to negotiate a performance based contract which unlocks value for both parties. What we often lose sight of is that good business and good negotiation isn’t always just about a fixed dollar amount.
How could the team at Acquire bring our capability to you?
The team at Acquire have years of experience negotiating supply agreements for our clients. The knowledge and experience we received from the Negotiation and Leadership Program validated the approach and methods we have been using and have provided us with some new learnings and perspectives from the thought leaders on negotiation theory.
We’d love to share our learnings and experience with you and your organisation. Maybe even run an exercise with your team to see what they would pay for their own football superstar. For more information, please contact Simon Thompson.