Breaking Through Negotiation Stalemates

Article by Omid G.

The Procurement Challenge

One of the biggest challenges procurement professionals face is breaking through negotiation stalemates. Often, these arise when a supplier’s sales team promises incredible outcomes—while procurement is hesitant to pay for results that seem unlikely or unproven.

At the heart of the issue is a fundamental mismatch: the supplier’s lofty promises versus procurement’s expectations. This gap can feel impossible to bridge.

But there’s a secret weapon that can help you move beyond such deadlocks.

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A Lesson from the NFL

Let me tell you a negotiation story—it’s unfolding right now in the National Football League (NFL). Sports negotiations offer tremendous insight, and this one’s a gem.

NFL players are typically paid based on:

• Their performance

• Their position

Even the world’s best kicker will earn far less than an average starting quarterback—because the quarterback position commands a much higher market value.

Now, picture this: one NFL team has a player who is a Swiss Army knife—he can play running back, wide receiver, tight end, and even quarterback. As his contract came up for renewal, negotiations turned complex.

Here’s the issue:

• The team already had a dedicated quarterback.

• They valued this versatile player based on the other roles—offering a contract worth $40M.

• The player, however, wanted to be paid as a quarterback—$95M—in case he took over that role.

That left a massive $55M gap in expectations. Negotiations stalled. The player was close to becoming a free agent—gaining more leverage by being able to sign elsewhere.

Then, a brilliant solution was proposed:

• A $40M base salary

• $55M in performance incentives if he became and remained quarterback

• $22.5M guaranteed payments to provide financial security

Both parties won.
The team avoided overpaying for a player who might never be quarterback. The player got a fair shot at top earnings if he performed.

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The Secret Weapon: Contingency Contracts

This deal succeeded because it used a Contingency Contract—and that’s your secret weapon to break negotiation stalemates.

Here’s how you use it in procurement:

1. Understand the “Why” Behind the Ask
   Ask the supplier why they’re quoting a premium price. Get them to tie that price to specific and measurable performance outcomes.

2. Do Internal Value Analysis
   Assess what hitting those outcomes would be worth to your company. Your internal users may even agree the price is justified if the results materialize.

3. Outline Dual Scenarios

   • Scenario A: Supplier hits their lofty goals → you pay premium.

   • Scenario B: Supplier performs at expected baseline → you pay a fairer amount.

This dual-structure becomes your contingency contract, and it enables both parties to feel like winners—pay for what you get, reward what exceeds.

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A Real-World Example

Say I’m hired to lead a public seminar. The organizer offers a flat fee. But what if 300 people show up instead of the expected 100? Then the fee is too low, and the organizer profits disproportionately.

Rather than going in negotiation circles, we can strike a contingency deal:

• The higher the registration, the more I get paid.

• Everyone wins. Risk is balanced, and success is shared.

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Your Takeaway

Salespeople will promise the moon—that’s their job. Your job is to separate promises from outcomes and price both appropriately.

By doing so:

• You pay fairly for real performance.

• You protect your organization.

• You give suppliers a path to earn more—if they deliver more.

This is how you break stalemates and reach win-win agreements.

Put Contingency Contracts in your negotiation toolkit and make them a part of your standard operating model.

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Now Go Do Something Wonderful

– Omid G.
“THE Godfather of Negotiation Planning” – Intel Corp

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P.S. Join the Procurement Revolution

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