The New Orleans Saints vs Drew Brees contract negotiation is a perfect metaphor for my frustration with marketing right now. This post is a rally call for marketers and brands to work on Lifetime Value instead of ROI.
The ROI limitation
As Brees’ current $60M/6 yr contract ends, both sides are at an impasse because of a $6.25M overspend on the NEW contract. Let’s look at the latest numbers reported by ESPN:
- Brees demand: $20.5M X 5 yrs = $102.5M
- Saints offer: $19.25M X 5 yrs = $96.25M
I’ve been here before, and I know right now that no President, CEO, CFO, CMO would entertain a marketing plan to ‘overspend’ by 6%, (and if you were having a really bad day could trigger a request for a 6% underspend!). So here’s an innovation for Brees....combine contracts, current ($60M) + new ($102.5M) AND change the story:
Lifetime Value Rocks!
- Brees should reframe his discussion as LIFETIME VALUE, and use different language. He MUST avoid referencing ‘current’ or ‘new’ contracts . These contracts do not impact what he delivers to the Saints.
- He needs to go in right now and TELL THE STORY that he’s only asking for $14.8M a year.
- He should use these words in every statement “My lifetime playing and leadership value to the Saints is $162.5M over 11 years”.
Those that don’t, well you know who you are. Enjoy fighting with your ROI tools that still wont make the calculation work for you!