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Monday, July 20, 2009

Pacquiao Cotto negotiations meant to deal with Mayweather demands

Manny Pacquiao's camp, outside of Top Rank promoter Bob Arum, has been pressing for a catchweight below 145 lb. in a fight against Puerto Rican welterweight champion Miguel Cotto. (Cotto weighed in at 146 lb. against his last fight against Ghana native Joshua Clottey.) Arum appears confident that the fight will push through in November. Cotto's promotional contract with Top Rank ends toward the end of the year, and Bob Arum - in order to keep his fighter - has to satisfy his Puerto Rican client with a highly attractive match.

Negotiations 101, and a prelude for future negotiations

Specifically, demands for the bout to take place at 143 lb. has been put forth. Given Cotto's insistence that the fight take place at 145 lb., Pacquiao may ultimately agree to this weight term and the back-and-forth that is normal for negotiations will finally be placed to rest.

Many boxing fans have become unhappy with the demand for a catchweight for the bigger welterweight in Cotto. What observers should remember is that Pacquiao's camp is not only looking after their fighter's short-term interest, but also looking after his long-term interest. In negotiations, acquiescing to a demand can lead to similar or even greater demands in the future.

The Cold War Case Study

During the Cold War, the Soviets placed nuclear weapons in Cuba and made several demands from the U.S. as conditions for the removal of these weapons. Soviet Premier Nikita Kruschev saw weakness in his assessment of Pres. John F. Kennedy. Because of the Russians' demands, Kennedy's advisors wanted to play hardball with the Soviets, and many of the hawks advocated outright invasion of Cuba in order to remove Fidel Castro as well as the nuclear weapons. Why? Because giving in to Soviet demands at that point would validate Kruschev's opinion of a weak Kennedy. And when you are faced with a weak adversary, you keep pushing and pushing - and make more and more demands - just like a bully.

Several of Kennedy's advisors thought the hard-line approach was actually a better mechanism for averting World War III with the Soviets. Why? Because when a bully keeps on pushing and pushing, the opponent eventually has no choice but to go to war. They cited the West's early accomodation of Adolf Hitler's Germany. Hitler kept on provoking until war became the only reasonable choice left for the international community. Taking a hard stance at the beginning may have kept the aggression in check at an earlier stage.

If you look at North Korea, they have also made several demands from the international community as preconditions for halting their nuclear weapons program. From time to time, the West provided various aid including food and medicine in order to promote good relations with the North Koreans. To this day, it has not worked. Despite bad conditions for its populace, the North Koreans are suspected to have a full blown nuclear weapons program and have recently test fired several missiles near South Korea and Japan. That is why former president George W. Bush took a hard stance against Kim Jong Il and his camp.

The lesson? In negotiations, you do not appease a bully. You draw a line in the sand, and fight for your position. (So long as you genuinely believe that you are right). Walk away if necessary. Principles.
"A wishbone is not a substitute for a backbone."
Future Mayweather Negotiations Manifested in Cotto Negotiations
Fighting Cotto at 147 lb. would only embolden Floyd Mayweather, Jr. to take a hard-line stance to hold the fight at that weight. Pacquiao, then, would have little credible reason not to have the fight at 147 lb. At that point, he will have fought Oscar de la Hoya and Miguel Cotto at the same weight.

Having the fight fought between 143 and 145 lb., however, places pressure on the bigger Mayweather to meet Pacquiao halfway. It is possible that Mayweather's insistence that smaller fighters (such as lightweight Juan Manuel Marquez and junior welterweight Manny Pacquiao) face him at his natural weight, makes Mayweather appear like a big bully. That image can place pressure on the Michigan native to fight a few pounds below 147 lb.

Bob Arum and Pacquiao's advisors appear to have taken a hard-line stance against Floyd Mayweather when it comes to purse splits. They are in unison. Undoubtedly, Manny's camp - and the entire boxing community - will closely watch Mayweather's pay-per-view numbers when he fights Marquez in September. Many in Manny's camp believe the Filipino deserves a majority of the purse split, while Arum has hinted that 50% may be sufficient in arranging boxing's biggest fight of this generation. We only point out the rationale for this hard-line stance. Mayweather is having his own hard-line stance that he deserves most of the split in a fight against Pacquiao.
Negotiation Lesson: Pacquiao's camp is correct in taking a hard position against Mayweather's demands. In negotiations (whether in geo-political, military, or business settings), you do not acquiesce to unreasonable terms, and doing so makes you weak and lessens people's respect of you. Unfortunately for Miguel Cotto, he is caught up in Manny's camp drawing their hawkish lines in the sand.
They have to.

The approaching armies of Mayweather The Conqueror is beginning to rattle Pacquiao's campfire.

Source: examiner.com

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