Dispute in sport negotiations: How to handle it?

 

STUDENT PAPER

By Alexandre Desno

SKEMA Business School

Paris, France

 


 

ABSTRACT

This study investigated the different dispute resolution in negotiation in Sport Industry. After a concise portrayal of each alternative to dispute resolution those alternatives dispute resolutions (ADR) can be used to resolve a dispute between two parties such as the agent and the sport director. These alternatives are compared to each other regarding chosen criteria. Those eight criteria are weighted according to their level of importance for dispute resolution. The goal of this paper is to discover which type of alternative is the preferred one when managing a dispute in sport negotiation.

The paper is based on a Multi-attribute decision analysis, an additive weighting calculation, a fishbone diagram and articles. These analyses show that Active listening is the preferred solution for speed saving, time saving, and so on.

Regardless of whether Active listening has disadvantages, it is the favored arrangement. To be sure, you can’t generally make certain that one alternative will be a success. In any case, Active listening is the one that will more meet every one of the objectives expecting by both gathering in sport negotiation.

Keywords: Sports negotiations, Sport contract, Agents, Project Management, Dispute

INTRODUCTION

Sport occupies a preponderant place in our society. It allows people to escape from everyday life and can be a religion for the most seasoned fans. While sports such as football, soccer and basketball are famous around the world, the business generated in these environments are equally breathtaking. Professional sports represent a financial bubble totally disconnected from reality with clubs as main actors, powerful institutions weighing several hundred million dollars, players who see their merchant value explode and get disconcerting salaries and brands that come to show on the jerseys, in the stadiums and also associated with big players with international influences. The issue of negotiation in the sporting environment is as important as the amount of money that is involved. Negotiations, especially when transferring players from one club to another, are complex and represent a large-scale project in which several stakeholders have a role. Many lessons are to be learned from the negotiation in sport and can be applied to project management. Therefore, players contracts are really hard to negotiate.

Concerning the project, it is defined as an investment which requires a set of logically linked and coordinated activities performed over a finite period in order to accomplish a unique result in support of a desired outcome[1]. For the domain of sport, an example of a project can be a single game or the transfer of a player from one club to another. This investment requires a big commitment of financial resources, but also a strong project team to work on the transfer project. For example, Paris St-Germain have signed in 2017, the Brazilian forward Neymar for a world record fee of 222m euros from Barcelona[2]. The constraint of the transfer is the negotiation as it can take months to find a consensus between the player, the club, the agent and the last club owner of the player. As the transfer window is open from July to August, time is a big factor of success. The desired outcome is expected to benefit the club who have invested in the player, generally the club expect their new player to have a positive impact on the results of the team. As an individual game represent a project, a season would be compared to a Multi- Project Program.

What is a program? 4 different definitions regroup the program:[3]

  • Strategic program which deliver assets and benefits that are directly linked to attaining the sponsoring organization’s future state, for example the transfer of a player would attract new sponsorships with brands and make more profits.
  • Operational program which deliver assets and benefits that are critical to the sponsoring organization’s day to day operations, for example making sure that the transfer fee of the player does not impact negatively the financial health of the club and does not generate a fine from the institutions for disrespecting the rules.
  • Multi-Project Program that achieve synergies from projects with common traits such as shared resources, similar clients or product technology, for example a big club who works in partnership with a club in a smaller division in order to get their young talent more easily.
  • Mega-Project that deliver a specific asset to the sponsoring organization, for example a sponsorship between the club and a worldwide known brand making exclusive equipment.

A sport negotiation program always represents a long-term vision, for example : When a club is negotiating a contract with a new player they are looking for the duration of the contract, what will be the marketing impact of the transfer during the years and what are the goals objectives with the player.

About the asset which can be a tangible or intangible resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit[4].

We can notice there is 5 assets classes:

More…

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Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared as a deliverable for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director paul.gardiner@skema.edu.

How to cite this paper: Desno, A. (2019). Dispute in sport negotiations: How to handle it? PM World Journal, Vol. VIII, Issue VI, July.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/07/pmwj83-Jul2019-Desno-how-to-handle-dispute-in-sport-negotiations.pdf

 


 

About the Author


Alexandre DESNO

Paris, France

 

 

 

Alexandre Desno is a 22 year old French student, currently pursuing a Master of Science degree in Project and Programme Management and Business Development at SKEMA Business School. Since his youngest age, he has a strong entrepreneur mindset and a powerful passion about sport and especially football (soccer).  After gaining significant experience from different positions in different industries, he will be graduated from his Master’s degree in June 2019 and will be looking for a job in sport field as an account manager or in the consulting field where he has a strong experience as he worked for the French cabinet, WAVESTONE. With a huge competitive and team spirit, he is playing football and tennis. His numerous international experiences (internships, exchange semester) gave him the opportunity to develop his adaptability and to become a confident problem solver. Being open-minded and world oriented increased his innovative skills. Highly interested in project management and his main upcoming challenges, he is getting certified for Prince2, AgilePM, CAPM.

You can contact him at:

alexandre.desno@gmail.com

or,

https://www.linkedin.com/in/alexandre-desno-945b44113/

 

[1] Harris, P., Kriel, J., LeServe, M., Riaz, Y., Giammalvo, D. P. D., Illingworth, S., … Weaver, P. (n.d.). 01.1.2. In Guild of project controls compendium and reference (car). Retrieved from http://www.planningplanet.com/guild/gpccar/introduction-to-managing-project-controls?fbclid=IwAR28qfz7FcD6qA60EI1dtZs03w9m7QRPXKd5q1b1dTVNm98qRvAE-0tf0HA

[2] BBC Sport. (2017, August 3). Neymar: Paris St-Germain sign Barcelona forward for world record 222m euros – BBC Sport. Retrieved from https://www.bbc.com/sport/football/40762417

[3] Harris, P., Kriel, J., LeServe, M., Riaz, Y., Giammalvo, D. P. D., Illingworth, S., … Weaver, P. (n.d.). 01.1.2.1.05 In Guild of project controls compendium and reference (car). Retrieved from http://www.planningplanet.com/guild/gpccar/introduction-to-managing-project-controls?fbclid=IwAR28qfz7FcD6qA60EI1dtZs03w9m7QRPXKd5q1b1dTVNm98qRvAE-0tf0HA

[4] Harris, P., Kriel, J., LeServe, M., Riaz, Y., Giammalvo, D. P. D., Illingworth, S., … Weaver, P. (n.d.). 01.1.2.1 In Guild of project controls compendium and reference (car). Retrieved from http://www.planningplanet.com/guild/gpccar/introduction-to-managing-project-controls?fbclid=IwAR28qfz7FcD6qA60EI1dtZs03w9m7QRPXKd5q1b1dTVNm98qRvAE-0tf0HA