Case | HBS Case Collection | 2009 (Revised from original 2006 version)

Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J.

by Ian Larkin, James K. Sebenius and Guhan Subramanian

Abstract

In this three-party negotiation exercise, Jesse J, star center in the U.S.A. Women's Basketball League, with her agent, is negotiating a possible compensation package with the Boston Sharks involving a base salary, a possible share of team merchandising profits, and a performance incentive. Each player (Jesse J, her agent, the Sharks general manager) has a confidential brief as the basis for the negotiation.

Keywords: Compensation and Benefits; Contracts; Negotiation Process; Negotiation Tactics; Conflict and Resolution; Sports; Sports Industry; United States;

Format: Print

5 pages

Purchase

Citation:

Larkin, Ian, James K. Sebenius, and Guhan Subramanian. "Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J." Harvard Business School Case 906-026, October 2009. (Revised from original January 2006 version.)

Sued for patent infringement, chemical manufacturer C.K. Claridge tries to design a settlement strategy taking into account a decision analysis of litigating v. negotiating. The plaintiffs are the patent holder and its sole licensee, who is also a CKC competitor. (This case is a revised, alternative version of "C.K. Coolidge, Inc. (Abridged)," HBS No. 607-006.)

Just as Duke Energy and Progress Energy announce their merger, forming the largest utility company in the United States, a nuclear reactor owned by Progress suffers major damage and must be taken offline. The CEO of the new company, Duke head Jim Rogers, must decide whether to repair or retire the broken reactor. This difficult decision is set against a background of deepening crisis as Duke copes with a regulatory investigation, an insurance impasse, and growing doubts about Progress's leadership.