NEGOTIATING ON THIN ICE

NHL

Preparation
Parties:
i) NHL - Gary Bettman, Bill Daly
ii) NHLPA - Bob Goodenow, TakSashin
iii) Players

Interests:
i) Minimum salary cap for players
ii) Salary to revenue tie up.
iii) Added benefits
iv) Maximum compensation for players

Value:
Increase no of game.

BATNA
i) NHL- Close operations
ii) NHLPA- agreement on present deal
iii) Players- Move to other clubs.

ZOPA:
$43 million to $50 Million



During Negotiation

We opened our negotiation by identifying the key issues in the negotiation.
I. Salary Cap
II. Salary to revenue relationship

Anchored Price- $43 Million
Agreed Price- $ 46.5 Million
65% revenue to salary linkage

Key Learnings
By adding more value, both the parties can be satisfied as they are more likely to
accept one or the other value proposition.
In order to reach on a common solution, it is important to empathize with other
party.