Quote:
Originally Posted by BayAreaChris
Not necessarily.
A few examples:
1. Most people when they get job offers are offered a certain amount. Often times the candidate might have taken less. Does that mean the employer overpaid? No. It was what they valued the job at and also might avoid any back and forth or bad feelings.
2. NFLPA is paid a flat sum of $20k a year by Panini. Fanatics wants to get into a similar business as Panini and values what NFLPA provides as $100k conservatively. Fanatics company offers to match the $20k a year flat sum but adds 5% revenue sharing that could be up to another $20k and 1% equity in the company that is valued at $1 million, so essentially an add'l $10k that could grow. Did Fanatics overpay or was NFLPA being grossly underpaid and Fanatics found a way to still pay them less than the believed market value, but not have a bidding war? Also NFLPA realizes no company like Panini could even offer them something like the equity stake with upside, so it's a no brainer to them to pick Fanatics.
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It doesn't work that way in real life, and this isn't a job. That's apples to oranges. I've negotiated for a living for the past 20 years. For an athlete - where they want to live might factor in, or for an artist - maybe creatively the gig factors in. For a company or an organization whose sole purpose is to make money?
You work to get the best deal.
The only time I've ever accepted a deal straight up with no negotiation is when myself and my client could not believe that the other party offered the money they did and we wanted to lock it in before they could re-think it.
Again - Rubin could be such a genius we don't question it down the line.... but there's good reason to believe he overpaid.