New York Knicks’ superstar NBA guard Jalen Brunson reportedly just took $112 million less in compensation than he could get on the open market so he could stay with the Knicks. Wow! Of course, he’s still getting $156 million over four years!
And NBA superstar guard-forward Paul George recently signed with the Philadelphia 76ers for $212 million over four years. He apparently left the Clippers partially because he felt they disrespected him by initially making a lowball first offer of $60 million over two years, well below his market value.
What can we learn from these negotiations?
1. Personal interests and needs can trump money
We’ve all heard that when someone says “it’s not about the money” – it’s really about the money. Not so here.
For Brunson, his individual needs and interests in competing for an NBA Championship – which would be far likelier with a smaller contract that gave the Knicks the financial flexibility to sign other great players – outweighed his short-term financial interest.
Plus, he almost certainly took less in part because he really enjoyed playing with his buddies, several of whom were his college teammates who won a national championship at Villanova.
The lesson? Explore negotiators’ actual interests and needs. Don’t assume.
2. If you care about the relationship, make your first offer respectful
The Los Angeles Clippers’ first offer to George – $30 million per year for two years – was just over half the annual amount he ultimately signed with the 76ers – $53 million per year for four years. It was also for two fewer years, adding risk to George of a possible career-ending injury.
Yet the Clippers indicated they really wanted to re-sign him, ultimately offering him $50 million per year for three years.
George said he found the Clippers’ initial offer “’kind of disrespectful’. . . I’m like, ‘Whoa, whoa, whoa. That’s crazy. ’ So I’m like, ‘Naw, I’m not signing that.’”
George’s reaction says it all – disrespect. Everyone wants respect, especially NBA players, and the Clippers’ first offer failed to send this crucial message. I support aggressive first offers in many circumstances, but this was way too aggressive if they really wanted to keep him.
I believe the Clippers’ ultimately recognized this, too, practically doubling their offer in the end. But the damage by then was done.
3. Make appropriate offer-concession moves
The Clippers’ compounded its first offer mistake by increasing its offer, according to George, by “inches, inches, inches” during the early months of last season.
Disrespectful, again. Of course, the Clippers might say they eventually got to $150 million over three years. True. But that only came after they made a similar deal with George’s teammate and fellow star Kawhi Leonard.
That’s another wrong message to send to a star player you want to resign – and who had wanted to resign, too.
Latz’s Lesson: Explore true interests and make respectful offer-concession moves. Both will help you achieve your best deals.
* Marty Latz is the founder of Latz Negotiation, a national negotiation training and consulting company that helps individuals and organizations achieve better results with best practices based on the experts’ research. He can be reached at 480.951.3222 or Marty@LatzNegotiation.com.