5 Critical Negotiation Lessons from the NFLPA Crisis

The National Football League Players Association (NFLPA) is facing a crisis that every business leader should study. Executive Director Lloyd Howell's dual role consulting for a private equity firm seeking NFL ownership stakes has exposed fundamental negotiation failures that go far beyond sports—they're textbook examples of how poor stakeholder alignment, conflicts of interest, and secretive decision-making can undermine any organization's negotiating power.

For procurement teams, sales leaders, and executives who negotiate on behalf of others, the NFLPA's dysfunction offers crucial lessons about what happens when negotiation fundamentals break down at the leadership level.

The NFLPA Crisis: A Negotiation Case Study in What Not to Do

The facts paint a troubling picture of negotiation malpractice:

• Conflict of Interest: Executive Director Lloyd Howell works as a consultant for Carlyle Group, a private equity firm approved to seek minority NFL team ownership
• Secretive Processes: Howell was elected by just 11 players through a process that raised constitutional questions about transparency and proper voting procedures
• Information Withholding: The union and NFL owners agreed to keep arbitration results about potential salary collusion confidential—even from the players themselves
• Delayed Action: It took public exposure of these issues for the union to appeal the arbitration ruling

As RED BEAR founder Chad Mulligan often says, "Negotiation isn't about avoiding conflict—it's about using productive tension to unlock creative outcomes." The NFLPA has eliminated the healthy tension necessary for effective representation by operating in shadows and maintaining divided loyalties.

Lesson 1: Stakeholder Alignment Is Non-Negotiable

The Problem: When your negotiation team has conflicting interests, you can't represent anyone effectively.

Howell's role with Carlyle Group creates an impossible situation. How can he aggressively negotiate against NFL owners when his consulting firm seeks to invest alongside them? This fundamental conflict undermines every negotiation strategy the union might deploy.

The Business Application: Whether you're leading procurement negotiations with suppliers or sales teams dealing with complex enterprise deals, your internal team must be aligned on objectives, constraints, and success metrics before engaging external parties.

RED BEAR Principle: Always clarify whose interests you're serving and ensure those interests don't conflict with your negotiation position.

Action Steps for Business Leaders:

• Conduct conflict-of-interest audits before major negotiations
• Establish clear protocols for team members with divided loyalties
• Create transparent decision-making processes that stakeholders can verify

Lesson 2: Information Transparency Builds Negotiation Power

The Problem: The NFLPA withheld crucial arbitration results from the very players they represent.

Even though the arbitration ruling favored the NFL, it revealed that league officials encouraged teams to reduce guaranteed salaries—information directly relevant to players negotiating contracts. By keeping this secret, union leadership denied players critical leverage in their individual negotiations.

The Business Application: Information asymmetry can work for or against you in negotiations. When you represent others (employees, departments, or stakeholders), transparent communication builds trust and collective negotiating power.

RED BEAR Principle: Strategic information sharing strengthens your position when it aligns stakeholders around common goals.

Action Steps for Business Leaders:

• Share relevant negotiation insights with team members who need them
• Establish clear communication protocols for sensitive information
• Use transparency as a tool to build internal alignment and external credibility

Lesson 3: Preparation Prevents Poor Performance Under Pressure

The Problem: The NFLPA's reactive approach to crisis management suggests poor preparation for predictable challenges.

Union leadership should have anticipated questions about Howell's dual roles and prepared responses that demonstrated competence and transparency. Instead, they're scrambling to address issues that became public through investigative reporting rather than proactive disclosure.

The Business Application: High-stakes negotiations require scenario planning that addresses potential conflicts, stakeholder concerns, and reputation risks before they become public problems.

RED BEAR Principle: Preparation isn't just about your negotiation strategy—it's about anticipating how your approach will be perceived and challenged.

Action Steps for Business Leaders:

• Conduct pre-negotiation risk assessments that include reputation and stakeholder impact
• Prepare responses to predictable challenges about your team's qualifications and motivations
• Establish clear escalation procedures for when negotiations become public or contentious

Lesson 4: Healthy Tension Drives Better Outcomes

The Problem: By operating secretively and avoiding difficult conversations, the NFLPA eliminated the productive tension that drives creative problem-solving.

Effective negotiation requires what RED BEAR calls "productive tension"—the dynamic push-pull between competing interests that forces creative solutions. When union leadership operates in shadows and avoids transparency, they remove this essential element.

The Business Application: Whether you're negotiating supplier contracts or internal resource allocation, avoiding difficult conversations usually makes problems worse, not better.

RED BEAR Principle: Embrace tension as a tool for discovering better solutions, not something to avoid or eliminate.

Action Steps for Business Leaders:

• Frame difficult conversations as problem-solving opportunities
• Use structured negotiation processes that surface competing interests constructively
• Train teams to see tension as information, not conflict

Lesson 5: Credibility Is Your Most Valuable Currency

The Problem: The NFLPA's credibility crisis undermines every future negotiation they'll conduct.

How can players trust union leadership in CBA negotiations when that same leadership maintains undisclosed conflicts and withholds crucial information? How can NFL owners take union demands seriously when the union's own members question their representation?

The Business Application: Your reputation and credibility directly impact your negotiating power. Damage to either makes every future negotiation more difficult and expensive.

RED BEAR Principle: Credibility isn't just about honesty—it's about demonstrating competence, alignment, and consistent follow-through.

Action Steps for Business Leaders:

• Treat every negotiation as an investment in your long-term reputation
• Establish clear standards for ethical conduct that team members understand and follow
• Address credibility concerns proactively rather than reactively

What This Means for Your Next High-Stakes Negotiation

The NFLPA crisis offers a stark reminder that negotiation failures often start long before parties sit down at the table. When leadership maintains conflicts of interest, operates without transparency, and fails to align stakeholders around common goals, no amount of tactical skill can overcome these fundamental weaknesses.

For business leaders preparing for complex negotiations—whether with suppliers, customers, or internal stakeholders—the lessons are clear:

1. Audit your team for conflicts of interest before they become public problems
2. Establish transparent decision-making processes that build stakeholder trust
3. Prepare for predictable challenges rather than hoping they won't arise
4. Use tension productively to surface better solutions for all parties
5. Protect your credibility as your most valuable negotiating asset

The Path Forward: Building Negotiation Excellence

Organizations that consistently achieve superior negotiation outcomes share common characteristics: clear stakeholder alignment, transparent processes, thorough preparation, and leaders who understand that credibility and competence are prerequisites for success.

The NFLPA's failures demonstrate what happens when these fundamentals break down. For business leaders, the question isn't whether you'll face similar challenges—it's whether you'll be prepared when you do.

As Chad Mulligan notes, "We don't just train negotiators. We create negotiation cultures." The NFLPA's crisis shows why that culture starts at the top, with leaders who understand that effective representation requires more than just sitting across from the other side—it requires earning and maintaining the trust of those you represent.

Ready to build negotiation excellence in your organization? Contact RED BEAR to learn how world-class negotiation training can prevent the kind of breakdown we're seeing with the NFLPA—and position your team for sustained success at the negotiating table.

RED BEAR is the leading provider of enterprise negotiation training, trusted by 45% of the Fortune 500 to build world-class negotiation capabilities. Our methodology combines behavioral science, strategic preparation, and real-world application to create negotiators who consistently deliver superior outcomes.