Negotiation, like chess, the popular Russian pastime, is a game. Pick up any book on negotiation and it will be littered with references to game theories. Most importantly, anyone trained in the art of negotiation, knows that it’s a game. Mikhail Prokhorov, Russian billionaire, is a highly sophisticated business man intimately familiar with the rules and principles of negotiation. Following this simple reasoning, Prokhorov’s announcement that the Nets are pulling out of the deal is a bluff, although a really strong one. It’s really that simple.
As part of the game, it is not unusual for a negotiator to switch tactics or styles to gain an advantage. In negotiation theory, there are two main schools of thought – the cooperative school and the right-based adversarial approach. In the cooperative, the parties work together to come up with creative solutions to expand the pie so everyone wins. In the adversarial approach, the parties fight each other in a test of wills to divide up the pie. In this game, the Nets have not backed out of the deal, but merely switched tactics from cooperation to a win-lose approach.
For several months, the parties negotiated with a win-win approach, attempting to strike a deal by working together and bringing in other parties to expand the pie. The last third party was the Detroit Pistons, previously it had been the Utah Jazz. However, despite the cooperation, the Nuggets were in a position of advantage.
Now, Prokhorov is crying foul. He claims the Nuggets have become too greedy and wronged the Nets by making the negotiations public, causing him harm with the distraction resulting in losses. For his flop to work, as with any bluff, it must appear on its face to be more than a strategic play. Those trained in the Nikita Khrushchev school of bluffing, not only walk away from the negotiating table, but pound the table with their shoe before exiting. Prokhorov pounded the table by holding a press conference.
I won’t pretend to know what’s going to happen. I only know that Prokhorov is bluffing. He might change his tactics again and reach out to the Nuggets at the last minute. Or he may stand on his word, knowing that if he calls the Nuggets, he will lose another piece of the pie. Regardless, if the Nuggets call, he will answer the phone. They would be smart not to email. Whatever the case, it’s all a game.
Shawn Grady discusses various NBA-related legal issues as Red94′s legal analyst.
