Joe Torre and the Yankees

When is an offer not an offer? Joe Torre, an extremely successful (and the highest-paid) baseball manager, failed to bring the Yankees to the Divisional Playoffs in the final year of his contract.  Yankees management made him a non-negotiable offer for next year of $5 million, with “earnable bonuses” of up to $3 million more.  Joe turned it down.  It is unlikely that this offer was expected to be acceptable.  Joe, coming off a 12-year run, shouldn’t need the money. So what motivates him? As in many businesses, status, recognition and the appearance of success are key factors in the negotiation process.  If you want to close a deal, you should understand what the other side needs to get to be able to agree to that deal. The Yankees’ management team knows Joe well.  They could accurately predict that he wouldn’t take it.  This makes us think (as good negotiators do) about their motivations as well. (TD)