When such strong-arm tactics would be counterproductive, agents say that relying on performance-based contingencies — and patience — can be the best way to get a deal done. When the San Francisco 49ers released Jerry Rice in 2001 at age 39, for example, Steiner, his agent, admits that "we had only a certain amount of leverage, because there were only two teams interested, [the Oakland Raiders and the Detroit Lions,] and Detroit was willing to go only so far." In that case, he and Rice accepted a relatively low seven-figure salary, and then renegotiated for a better deal after Rice exceeded expectations and went to the Pro Bowl.

Similarly, earnout structures used in deals when an unproven product is at stake can reward future value. Murraysville, Pennsylvania-based medical-device maker Respironics Inc., for example, agreed to buy a product line from SpectRx Inc. back in 2003 for $5 million in cash and an additional $6.25 million over the next two years, contingent on the business's performance. In November, SpectRx got the last of its checks from the buyer, ending up with a grand total of $9.5 million for the product line. Says CFO Dan Bevevino: Earnouts are "a good way to bridge any difference in valuation perspectives," while ensuring that the buyer pays only for what it gets.

Be Nice
In all negotiations, however, sports agents agree that the tenor must be professional, courteous, and ethical. As soft as it sounds, many agents say building good relationships is what is most critical to getting the best deals. "It's a small world, and what goes around comes around," says Duffy.

Such an attitude paid off in spades for agent Mark Bartelstein when client Darius Songaila's contract with the Sacramento Kings came up for renewal last year. Bartelstein could have secured a release by working up a three-year deal with another NBA team that the Kings could not have matched, but Songaila's preference was an offer the Kings easily could have topped — a shorter contract from the Chicago Bulls.

So, with nothing to offer, Bartelstein went to the King's operating chief, whom he considers a friend, and asked for a favor. "I went to Jeff [Petrie] and said, 'Would you do the right thing for Darius?'" Bartelstein recalls, at which point Petrie backed off the negotiations. Bartelstein believes the implicit agreement was that he would remember the goodwill in the future when it came to marketing the Kings to clients. "He knows I'm not going to forget he did something for me," says Bartelstein.

The ultimate prize for a CFO in any negotiation, however, may be the personal satisfaction that comes from a battle well fought, regardless of the final terms. If a CFO won't argue for what he really wants, says Steinberg, he will be consigned to "that great mass of people who walk through life with a terrible roiling sense in their gut, feeling underappreciated and trod on." And, of course, if you can show shareholders the money, you may just feel like a star.

Alix Nyberg Stuart is senior writer at CFO.

You Had Me at Percentage
How sports deals get done.

Anna Kournikova
Tennis
Her Deal: Despite not having won any major tennis tournaments, Kournikova was able to garner a reported $20 million in endorsements in 1999. How? Her agents marketed her as a category killer, thanks to her good looks and charismatic personality.

Darius Songaila
Basketball
His Deal: Songaila was bound to the Sacramento Kings unless he could find a deal the Kings couldn't match. His preferred option, though, was an easily topped two-year contract from the Chicago Bulls. So his agent, Mark Bartelstein, used his longtime relationship with the Kings to ask for a favor — the release of Songaila — and got it.

Jerry Rice
Football
His Deal: When the San Francisco 49ers released Rice in 2001, only two teams were interested in him, leaving him little leverage. So Rice accepted a relatively low salary, and then renegotiated for a better deal after he exceeded expectations and went to the Pro Bowl.

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