Probably the most gratuitous negotiation error was the surprise announcement of the new League's existence
The European Super League is dead and club owners are lining up to apologise. What went wrong?
Probably the most gratuitous negotiation error was the surprise announcement of the new League's existence.
In negotiating terms, that tactic is called a “Fait-Accompli” - a French phrase used to describe an action to create a set circumstances which can’t easily be reversed, so that the other side will then need to negotiate around the facts that have been created.
This aggressive tactic can be effective in the short-term if the other side is dependent on you and has to keep negotiating. It is ill-advised if the power balance is equal or you are dependent on the other side. In this case, the FIFA and UEFA governing bodies control the club's ability to generate revenue through their local soccer league and the players’ ability to represent their countries in the World Cup - two major sanctions they were not afraid to play instantly. The soccer clubs clearly grossly overestimated their own importance to their local leagues as well as the governing bodies’ willingness to respond in kind to their aggressive tactics.
The fans were the other key stakeholder ignored by clubs. Clubs are run for profit and some are even listed on their respective stock exchanges, but taking the loyalty of fans for granted was yet another gross mis-calculation. In the end, sports clubs are in the entertainment business and revenues are directly linked to the number of fans buying merchandise, watching TV and betting on games. The fan backlash was instant and season ticket cancellations are now at an all-time high.
Apart from grossly over-estimating their power and the tactical blunder of not engaging with the two most influential stakeholders in their business before announcing the Super League, the other key lesson is even more fundamental.
When negotiating, don't just focus on what you want to achieve. You will achieve better outcomes if you can help the other side to achieve their goals and in so doing secure their full support to achieving yours. It’s a fundamental principle of those who wish to negotiate superior outcomes not just once, but again and again with long-term business partners. If you fail to address the interests of your negotiation partners, payback will come as soon as the power balance changes. That happened on Wednesday and the next weeks will tell exactly how costly the clubs' negotiation blunders will be.
If you - or someone on your team - would benefit from learning the art of professional negotiation, contact us to see if we still have a place available on one of our up-coming Public programs in Brisbane (May) and Sydney (June). We'd love to share the art and science of professional negotiation skills with you.
Call 1300 730 552 or email info@negotiation.partners