8/6/2019 Contract Negotiation Assignment HADA
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DIVYADEEP HADA
Contract Negotiation Assignment .
The activity was brillliant and provided great learning
oppurtunity and siginficant insight intounderstanding and analysing
contract from a players perspective.
Parties. Sachin Tendulkar and TVS motors
As Sachins Manager.
Negotiation Agenda for Sachin.
1) Exclusivity.Sachin was to be the sole brand ambassador of the
brand for the length of the
agreement and TVS caanot pull in any other brand ambassodor.
Agreement:.Exclusitvity to Sachin for 8months.
Comments.This was discussed for majority of the time,Since the
reality of the matter was nt consisderd in
the discussion,that is Dhoni and Virat arethe current brand
amabassodors.Hence it was taken as
a non negotiable point for sachin and evrything else was based
on this, was a wrong
assumption.Exclusitivity should have been given between TVS
Various products ,Higher endProducts Going to Sachin and then next
line of products to Dhoni and then Virat .
2)Sachin Retirement During contract and After
Agreement
Duirng :In case of retirement from test 30% deduction and 1 day
50% deduction before 6
months, 20% deduction if after 6 mnths.
After: If Sachin retires after the contract ends and is renewed
the fees remain the same and if they
want to renew they must have 20% higher.
Sachin Hoardings can be used for 2 months for at 20 percent
Comments .
This was not negotiated in Sachin favour ,the renewal rate was
agreed to 20 percent ,I assumed
the contrac t would not be renewed if Sachin retires and I
percieved this to be a Junk clause on
their side and hence allowed them to keep this so we could
negotiate on the contract extensionamount for use of Sachin Visuals
for another two months at 20 percent without Sachin having to
give any more commited days.The deduction clauses in the event
of Sachin voluntary retirementcould been minimised to maximum of 15
percent, Sachin presence in the media would go up
globally and that he would be active in various felicitaion and
awards cermonies across the
country ,could ve opend another contarct clause a win win
sagreement.
3) Tickets and Travelling.
Agreement
8/6/2019 Contract Negotiation Assignment HADA
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Business class tickets for Sachin and Economy Class for family
and managers.
If transit time is more than 2 hours then Sachin is entitled to
A chartered Plane.
Comment.This is was a negotiation disaster thanks to very liltle
time in hand but nonetheless this is
compleltly unacceptable ,Any player would fire his agent for
this. TVS negotitaing for the samewas equally thoughtless.
The later should have made more sense had it been negotiaited on
travelling time instead on trasit
time .
4) English Dialect only
Agreement
Only English Dialect would be used throughout the campaign
across all regions
Comments.This was negotitated keeping in mind Tendulkars future
plan of becoming an english
commentator.
5)No Liquor Brand with Tvs .
Agreement
No Assocition with any Liquor brand with TVS , in any promoitin
with or without Sachin
Comments .
This was compleltly worked in Sachins Favour,Though TVS and
Liquor brands have been
present toghther in the past ,but with the new agreement Sachins
Image of a highly responsible
citizen would be reiterated.
6.)HUNDREDS
Agreement.After the fifith hundred in all forms of the game
Sachin would get 10lakhs for evry
hundred scored.
Comments
Sachins 100 internationl century is ammter of consequence ,which
would add to his brand value
consderably .The bonus ten lakh on the sixth century could have
been brought down to the third
or fourth .
7.)Best in class travel Insurance
Agreed
Comments
This would require TVS to keep an advance 30 crore amount ,which
was a very good learning
from the actvity.
