I'm from Missouri and a St. Louis pro sports fan. In case you missed it, Cardinal great (pro baseball) Albert Pujols has left the Cardinals at the age of 32, signing a 10 year deal worth $254 Million with the Los Angeles Angels.
The reaction out of St. Louis is disappointment, but with a hat tip toward the realization that matching that offer would have been a suckers play.
It's a much different reaction than what happened in Cleveland when Lebron James opted to "take his talents to South Beach". The reaction should be different, because the situations are dramatically different.
It all comes down to replacement cost, your brand and the profitability line.
Lebron James was a mega-star in a superstar-driven league. The Cleveland Cavaliers couldn't replace him if he left. Cleveland as a sports town is a wasteland, a place where no free agent wants to dwell. Lose Lebron in Cleveland, you're not getting back to the top. Ever.
The Cardinal franchise is something entirely different. Lots of world championships before Pujols arrived. A great baseballl town and region where veterans want to play to bask in fan support all summer long.
Baseball is a sport where you need 20 contributors, and no one player can domineer the action - unlike basketball.
What would you do if Ed in Accounting told you he wouldn't be back in 2012 unless you gave him a 3 year deal giving him a annual 60% bump in comp?
Hit the bricks, Ed. You're replaceable.
What about Stan, your top sales pro? He's not coming back in 2012 unless you double his total comp and guarantee it for 4 years. He's a great revenue producer, careful....
You've got 4 other reps that are near quota. Stan's great, but you lose money on that comp structure. Don't let the door hit you on the butt on the way out, Stan.
Countering the star comes down to 3 things:
1. What's the total comp point where the revenue/performance the star provides goes into the red?
2. How strong is your organization? Can you recruit good talent in to replace the star? Is your brand good enough where others want to work for you?
3. Is there anyone else that can come close to doing what the star does?
Cleveland had no other options, thus the total freak out when Lebron left. St. Louis is pretty quiet in comparson the day after Albert took his talents to SoCal.
Is your organization like the Cavs or Cardinal nation?
Good post but you won't win many fans in Cleveland with some of these statements.
Posted by: DarrylRMSG | December 12, 2011 at 11:37 AM
Been a Cardinals Fan for 50 years since I was six. I was nine in 1964 and twelve in 1967 when Cards won World Series. As great as Albert was, I routinely replace Pujols at 1B with Musial, Cepeda, Johnny Mize, Bill White, or Keith Hernandez whenever I play Strat-o-Matic Baseball online at: http://fantasygames.sportingnews.com/stratomatic
What's different at my corporation is that here I am Albert Pujols. My father was Stan the Man. I think I'll keep me. I don't believe the $alary boost won't hurt the bottom line :)
Posted by: Stan The Man Fan | December 12, 2011 at 11:58 AM
My husband is a huge Cardinals fan, since the Albert news broke he hasn't smiled in days. Loved this article because this is great advice I not only can give him, but my colleagues at work!
Posted by: Megan Adams | December 12, 2011 at 03:08 PM
Totally agree wuth. However, before the season started the Cardinals had the opportunity to sign Pujols for less than they finally offered and everybody woyuld be happy (Pujols, fans and Cards...) I guess they did not think someone would give him that kind of money that´s why it is important to take care of your people on time but always inside the reasonable parameters.
Posted by: Salvatore | December 13, 2011 at 07:46 AM