Media Curmudgeon: Wednesday, December 10, 2003.

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December 10, 2003

Wednesday, December 10, 2003.

Wednesday, December 10, 2003. A Foolish Client
There's a saying that, "Any lawyer that represents himself has a fool for a client." The New York Times reported today that Yankee's owner George Steinbrenner was "in complete control of personnel moves, even club officials have idea what will happen from day to day." It appears that George is also doing the negotiating with players.

Star Atlanta Braves slugger and right fielder Gary Sheffield has been dealing with Steinbrenner, but two days ago backed off the original deal he had agreed to and is asking for more money. Sheffield is no dummy. He realized that by taking contol over personnel moves and negotiating for players the Yankees need, that the ego-driven, narcissistic Steinbrenner had put himself in a terrible position. If he lost a deal for a key player, George would have no one to yell at and blame for the mistake; he'd have to take responsibility for the failure himself. Steinbrenner is a man who hates losing and despises failure, and, now that the Red Sox have outbid him for Curt Schilling, he's obsessed about improving the Yankees and not failing. So, Steinbrenner is now, in a sense, representing himself, and, thus, has a fool for a client.

Sheffield probably realized how foolish Steinbrenner is to negotiate for himself and that, because of Steinbrenner's unshakable, narcissistic belief in his own genius as a judge of talent and as a negotiator, he cannot admit failure, so he will overpay outrageously to avoid looking bad or losing.

Steinbrenner is also negotiating with David Wells, and will undoubtedly overpay him, and with Vladimir Guerrero, the hard-hitting Montreal right fielder. The Times reported that Guerrero was now asking for a huge contract. It appears he's no dummy either and knows what Sheffield knows about dealing with Steinbrenner.

It's certainly no random coincidence that on the same day that The Times announced that Sheffield's and Guerrero's salary demands had gone up, that the Yankee's projected payroll for next year was appoaching $200 million (compared to $185 million this year) and that the Yankee's were raising ticket prices for next year.

Let's see now, the sequence goes something like this: 1) Stenbrenner takes over player salary negotiations, 2) prospective players ask for a lot more money, and 3) Yankees announce that ticket prices will rise.

What is the lesson here for managers? Don't hire yourself as your own negotiator. Hire good, professional negotiators. Tell them the parameters of the deal you want--your walkaway terms and price--and give them the authority and responsibility for getting the deal done. And whatever you do, don't step in when the going gets tough or the stakes escalate because you'll wind up investing your ego and paying too much like Steinbrenner does, and you may not be able to get someone else to pay for your stupid mistakes like he gets Yankee fans to pay for his.

This blog is also a not-too subtle pitch for reading Chapter 12, "Negotiating and Closing," in Media Selling, that you can buy now at www.mediaselling.us. Buy the book and read the negotiating chapter and avoid making stupid negotiating mistakes. Plus, the book costs less now than one good seat at Yankee Stadium will cost next year.

Posted by Charles Warner at December 10, 2003 11:21 PM

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December 10, 2003

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