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THE ART OF NEGOTIATION
Hello and happy Tuesday. It's cliche but it's August and we all wonder where has the time gone. So I want to drop a little bit of knowledge in how I negotiate deals. As of this writing, my technology security company has signed a number of contractual deals with corporate entities in the past few years. We provide security solutions that help them better secure their organizations. The hardest part is getting your foot in the door and speaking to new clients but right after that the most difficult thing is negotiating terms of a deal. I find it very odd that this is not something that is taught in schools and is something I advocate for people that work and train with me. If you look back at my blogging history, I've been a HUGE advocate for college and even high school athletes to get paid. You could probably go back 10 or 15 years ago and see my posts on this subject. I was so surprised when I would communicate my thoughts on this subject how many people, mainly men, across different demographics argued that players should not be paid.
I used this interaction as a case study in systemic systems and unfortunately this one includes race when it came to playing college athletes. Remember, I spoke to young, old, and men of different races and a majority of the time they stated college players don't deserve to get paid -- they often defaulted the school is paying for their education. The reason why I called this practice systemic is because even though most of these discussions resulted in the person across from me agreeing with my evidence, they found it easy to fall back to what is status quo.
When I consult for my clients, I follow a few simple mantras. You can't hit what you can't see (Visibility). You can't solve a problem you can't quantify (Measure). You can't solve a problem you if you don't take action (Solve). My opps (as the young folks say today) didn't stop to find contextual data of the argument I was making. Here was my point:
Visibility: There was not a proliferation of data involved when my opps would fall back to their status quo position. They didn't often state that a majority of the players in college football and basketball are African American.
Measure: They didn't measure or take into consideration the rate at which these players 'make it to the pros' or go on to play at a professional level to earn a living. According to the National Collegiate Athletic Association: 1 in 2,451 men's high school basketball players will be drafted by a National Basketball Assocation team.
They didn't measure the dramatic increase in youth leagues, parents spending insane amounts of money for these leagues, or the impact this drive has on families. What's the cost of obsessed parents who lose track of time spent, neglect to their spouse and other kids, or even missed school.
Solve: I don't claim to have all the answers but if we want to teach families and kids true economics we can start with sports:
1. Many kids play sports for the love of the game. So, consider youth sports a sunk cost: Set a budget and define up front what you'll spend and how much time kids should dedicate to sports. There is always a cost but start with the basics, what's wrong with kids in a neighborhood league playing each other every week just for the fun of it. The business of travel sports and super youth complexes is just that a BUSINESS.
2. I often quote Shark Tank "If after a few years, you're not making money from it -- it's just a hobby". Well said Mr. Wonderful! Sports should be a hobby until someone is profiting from you. When they begin profiting from you pay you need a piece of that pie. Nothing is more American, Capitalistic, or dare I say fair.
3. My go to silencer of my opps was a simple comparison to other sports. I knew for a fact that youth can turn pro and be paid as professionals in Tennis, Golf, Baseball, and other sports that were traditionally dominated by white players. I found it strange that my opps discarded this fact and suddenly were allergic to sports where African American youth dominated in participation.
If the Fab 5 (Jalen Rose, Juwan Howard, and company) could literally turn around the University of Michigan's basketball program and profit to the tune of billions of dollars, should they NOT have benefitted in those gains? Should college football not compensate a star player that packed stands for years and then suddenly suffers a tragic injury? Should college sports profit from these amateur players knowing that the percentages are miniscule that most won't make it to the professional levels? Should a player not be able to market himself, if not is he "property" and who owns him?
Let's fast forward and it's beautiful to see athletes in college getting paid via their Name, Image, and Likeness or often called NIL deals. Last time I checked these students are not property owned by someone. I passionately watch Overtime Elite (OTE) which is a league that pays high school, yes I said high school players $100K a year to play in it's league. The chance to earn from your skill is the LEVERAGE you need to take advantage in determining your WORTH. You can't just show up you must provide skills someone values. Clearly the audiences VALUE these players and a lot of money is being made. Finally, I respectfully remind the players to have OPTIONALITY. Similar to what I learned in sports applies to like -- you must be a triple threat! Because your athletic skills will diminish and you must always remember what THEY, your opps think of you.
I close with this caption from the disheartening treatment of Jonathan Taylor, the star running back of the Indianapolis Colts. Look closely at what the owner Jim Irsay says. Take into account, that Jonathan Taylor is the BEST player on this team. If you don't have optionality in LIFE, you will be simply looked at as property and stuck to unfavorable terms you may have to accept. I have the most euphoric feeling when I negotiate terms for myself and consultants -- "At the end of the day, I can walk away from the table and say no thanks". I also strangely find is less disruptive when I accept less than favorable terms in a deal -- "I signed that deal and if I don't like it I can terminate the deal (based on the terms I agreed upon).
I don't have any beef with what Jim Irsay is saying because it's just business. But I do know my opps and my job is to use my leverage and optionality to get the best deal -- because I do know after that contract is done, life goes on. Fortunately, nowadays my skill is my mind, and I am missed by my clients who call back but that will not always be the case. Here is that quote that sparked this post:
Per James Boyd of The Athletic, Jim Irsay said: “If I die tonight and Jonathan Taylor is out of the league, no one’s gonna miss us,” “The league goes on. We know that. The National Football (League) rolls on. It doesn’t matter who comes and who goes, and it’s a privilege to be a part of it.”
#knowyourworth #leverage #optionality
