Negotiation in the Sports Industry

The sports industry is filled with negotiations, a team will negotiate contracts with players, sponsors, suppliers, partners and so on! So it is a great place to learn and develop negotiation skills. For this reason I chose to interview Ms. Andrea Atala, Executive Director of a first division soccer team in Honduras, named Motagua, recently the team got crowned as champions of Honduras First Division. Besides being the executive director of Motagua, Ms. Atala has just launched a website called  “Acceso Directo” (Direct Access), dedicated to the promotion and expansion of sports in Honduras. I talked to her about her different negotiation strategies and projects and her answers provided insights I will incorporate into future negotiations.

1) How do you manage the human aspect at negotiations? What strategies do you use?

It is very difficult to separate the human aspect of the negotiation to the problem. Negotiating is an emotional process where your ego comes into play quite often. From your own part, try to be as objective as possible and approach the negotiation as mechanically as possible, and as for your counterpart try to appeal to their emotional side to reach your objective. In any negotiation, having a strategy is integral to your success. More often than not you are not alone in whatever business you are dealing with, so discuss beforehand with your peers, map out the key points of your negotiation, establish caps and floors and once you begin the negotiation stick to your game plan, If you have a game plan in place your risk of falling out because of your ego or emotions is reduced.

2) How do you prepare your position and prepare to understand the other party’s position when dealing with a supplier?

 Negotiation is all about managing expectations. When haggling for price it is easy to get to the price by doing detailed research beforehand on what it is you’re buying or selling. Use facts and be straightforward and assertive on what your limits are. You can manage these expectations by being an informed negotiator, you will know if someone is going too low or too high. 

3) What is your position at Motagua, and are negotiating any deal as of this moment for the team?

 I work as Executive Director of a First division soccer team in Honduras. I am working right now in the construction of a new stadium for our team in an extremely rural area plagued by extreme poverty. I have been in constant negotiations with the municipalities of the region, NGO's and various other community organizations. Our goal is to build and operate a hydroelectric power plant near our stadium, which we are sure, will help the community as well; their goal is to further socially and economically develop their communities. This is a win-win situation for everyone involved, as the construction is bringing many jobs to the community, directly and indirectly and have also negotiated many other benefits to the community, like the construction and maintenance of roads, classrooms and materials for their schools, electrification and a profit sharing plan as well. As they develop their community, we have a safer place to manage and operate our stadium and power plant; it is in our interest that the community develops for the good of our project and country.

4) How do you recognize what people really want to get out of the negotiation and how do you work to achieve a common ground where both you and the other party are satisfied?

 Very difficult to know exactly what your counterpart wants, but their natural human response is usually a very good indicator. Once you reach a critical point to their negotiation, if you are paying attention, you will see their body language change i.e. they will sit up on their seat or raise their voice or something of the sort.  If you are dealing with normal human beings of sound mind, reaching a common ground usually happens organically, but understand that in any negotiation its not about what you deserve to get, it is about what you have the LEVERAGE to negotiate. 

Contact:

Andrea Atala

Email: avatala@gmail.com

References:

Club Deportivo Motagua (2015). Club Deportivo Motagua. Retrieved from: http://www.motagua.com

Andrea Atala (2015). Acceso Directo. Retrieved from: http://andreaatala.escuelauniversitariarealmadrid.com