Sally Soprano I

Teacher’s Package

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of negotiation and dispute resolution. Harvard | MIT | Tufts

Sally Soprano I
Teaching Notes

Sally Soprano I involves a salary negotiation between an opera singer and an opera
company.

Overview
Sally Soprano is a distinguished older soprano who has not had a lead role in two years.
The Lyric Opera has a production of Norma opening in three weeks, and the soprano
who had been engaged to sing the title role has developed a condition requiring surgery
before the performance. The Lyric is eager to hire Sally, and the trustees have
authorized the business manager to offer up to $45,000 for the lead. Naturally, the
Lyric, which is a not-for-profit organization, would like the salary to be lower, if possible.
The original soprano hired for the lead was to have been paid $30,000, and the rather
inexperienced secondary soprano is being paid $14,000. (Industry practice is that lead
roles receive about twice the amount received by secondary role singers.) Four years
ago, at the height of her career, Sally received $22,000 for the lead role, but inflation
and an increase in opera’s popularity have nearly doubled the salary scale since then.

Sally desperately wants this role, which could give her a chance at a forthcoming
television special. She would be willing to sing the part for nothing, except for the
impact on future engagements and reputation. Her salaries for secondary roles over the
last two years have ranged from $10,000 to $18,000; more than a year ago she received
$12,500 for singing the secondary role in Norma at the Lyric. Last year, an inexperienced
soprano who sang the lead role is rumored to have been paid more than $24,000.

These Teaching Notes were written by the Harvard Negotiation Project. The exercise was written by Norbert Jacker and Mark
Gordon. Copies are available from the Teaching Negotiation Resource Center (TNRC), online at www.pon.org, by email:
tnrc@law.harvard.edu, or by telephone at 800-258-4406. This case may not be reproduced, revised or translated in whole or in part
by any means without the written permission of the TNRC Coordinator, Program on Negotiation at Harvard Law School, 501 Pound
Hall, Cambridge, MA 02138. Please help to preserve the usefulness of this case by keeping it confidential. The original case is
copyright © 1979 by Professor Norbert S. Jacker. New material copyright © 1982, 1985, 1988, 1989, 1990, 1995, 2004, 2012, 2015,
2018 by the President and Fellows of Harvard College. All rights reserved. (Rev. 8/18.)
Sally Soprano: Teaching Notes

Mechanics
Time required: 20 - 60 minutes: preparation (preferably outside of class)
20 - 35 minutes: negotiation
45 - 60 minutes: debriefing

Group size: 2 people

Materials: Confidential Instructions for Sally’s Agent

Confidential Instructions for Lyric Opera’s Business Manager
Sample Preparation Memo

Procedure
1. Distribute roles before class and ask participants to prepare individually in advance
of the negotiation. (This case can be prepared in class in about 20 to 30 minutes.
However, the shorter the preparation time allowed, the more likely that participants
will resort to positional bargaining.)

2. In class, divide participants into teams of two and allow 20 to 30 minutes for them to
negotiate. You may want to review the roles with the Lyric Opera’s business
managers and Sally Soprano’s agents separately before the negotiation.

3. Collect the outcomes of the negotiating groups for use in the debriefing. Outcomes
include not only the salary, but perks, intangibles, side agreements (e.g., for
advertising), and an assessment of the quality of the working relationship.

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Sally Soprano: Teaching Notes

Debriefing
When the outcomes of the negotiating groups are displayed to the class, the wide range
in possible outcomes for this negotiation will be apparent. The following questions may
be used as a basis for class discussion.

1. Strategy and BATNA

a) What things might you do if you do not reach an agreement at the bargaining
table?

b) What strategies did participants use in each role?

c) What is your Best Alternative to a Negotiated Agreement (BATNA)?

d) What is the value of the BATNA in terms of the “currencies” that will be on the
table in the negotiation, e.g., dollars, publicity, risk, etc.?

e) What is the price at which you walk away from the negotiation?
The bargaining zone for Sally’s salary in this simulation ranges from zero to
$45,000. The first step in preparing to negotiate is for each party to determine
his or her BATNA. Each should know exactly what it will do if no agreement is
reached. The other side’s BATNA should also be estimated. Once you have
estimated your BATNA, you may wish to consider the minimum (or maximum)
salary and other conditions that would be of equal utility to your client. That
package is the “reservation price” or “reservation value.” Having an estimate of
one’s own and the other side’s BATNAs provides a reference point for evaluating
offers and gives every player more power at the negotiating table. Options can
be evaluated more critically, and parties can be clearer about what they need to
reach agreement.

f) Did you think your BATNA was stronger or weaker than the other side’s?

g) What can each side do to improve its BATNA?

Some people have a curious reaction to this game. They feel they should accept
less for their client because their client’s alternatives are poor. This feeling is
independent of the fact that the other party is unaware of their poor BATNA,
and that they are unaware of the relative strength or weakness of the other
party’s BATNA. A poor BATNA may justify being more risk-averse, but this does
not necessarily mean one must ask for less. Attention would be paid to the effect
of a poor (or good) BATNA on one’s negotiation style and strategy.

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Sally Soprano: Teaching Notes

2. Standards and Criteria

a) (To a pair of negotiators): “You settled on a price of $X. Why? Where did that
number come from?”
Criteria or standards for evaluating proposed options should be objective, that is,
external to the will of either party, so each feels its interests are being protected.
Such criteria can be principles that the parties agree should govern the outcome,
such as fairness or efficiency. At times, the objectivity is ensured by outside
expertise. The objective criteria themselves can be the subject of much
negotiation. An agreement based on such criteria can free up the parties to
invent options more creatively, knowing that the final evaluation will exclude
those that do not meet the criteria agreed upon. In this instance, there are many
standards or criteria upon which to base an outcome. A listing of these standards
is supplied in Appendix A.

b) Which standards seemed more persuasive? Why?

One challenge in this case is the availability of a broad range of external
standards. Not all standards are equally persuasive. In general, those standards
that fit this situation more closely (e.g., this role, this opera company, this year),
are more persuasive than those more general in nature (e.g., general inflation
rate in opera salaries over four years). While no one standard is “the most fair,”
open-minded negotiators may be able to settle on an appropriate range of
fairness. Once that’s done, they may split the difference or try to invent new
options that add value to one side at little or no cost to the other.

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Sally Soprano: Teaching Notes

3. Interests and Creative Options

a) What non-monetary interests does each side have? What monetary interests do
they have that go beyond this particular negotiation? How did you talk about
each side’s interests?

b) What options, other than straight salary, did you explore?

This situation allows for the creation of various options separate from salary that
could maximize joint gains for the parties. (See Appendix B.) While this game can
be negotiated in a very distributive manner, by focusing only on the salary issue,
there is ample room for integrative bargaining.

Fisher and Ury, in their book, Getting to YES, distinguish between “interests,” which
are the underlying concerns of each party, and “positions,” which are the stands, or
positions, taken by each party on the issues being negotiated. They argue that by
focusing on interests rather than positions, parties can engage in integrative
bargaining and find creative ways to make all parties to the negotiation better off.

Positional bargaining occurs when parties do not focus on interests. In positional

bargaining, each party typically identifies a bottom line, an opening, and a fall-back
before negotiation begins. After the opening position is offered, each party makes
small concessions, based on their fall-back strategy. Concessions are made
grudgingly, until a compromise position is found or until the parties reach an
impasse. This type of bargaining builds little trust between the parties, as there is no
opportunity to develop a relationship and no incentive to explore each other’s
interests. The result is a process that moves backward from an opening position,
rather than forward toward a creative outcome. Most distributive bargaining follows
this positional approach.

Focusing on interests compels the parties to listen carefully to each other to discover
what each believes is really important. Interests define the problem in a way that
allows for collaboration and creativity in fashioning a solution. The endeavor
becomes one of joint problem-solving, rather than adversarial positioning. The
parties can explore possibilities for joint gains and trade-offs, resulting in a positive-
sum rather than a zero-sum agreement.

In order to explore the interests of parties at the table, the negotiation process
should include the opportunity to “brainstorm” possible approaches to problems
without the commitment to options proposed by either party. This encourages
creativity and joint problem-solving essential to integrative bargaining.

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Sally Soprano: Teaching Notes

4. Agency Issues
a) What was the nature of the commitment you gave to your client?

b) Was it final and binding?

c) Was it subject to client approval?

d) Was it discussed explicitly or just “assumed?”

Given that the negotiator is an agent, questions may arise as to the scope of the
authority of the agent and the role of the principal in the negotiation. Generally, the
principal would be present if there is a need for education of the principal or for
reality-checking. Many clients feel anxious during the negotiation and find it difficult
to hold firm where appropriate.

Whatever the authority, in most cases the agent would wish to reserve final
decisions for the client and to allow time to consider the proposed agreement. This
does not mean the agents cannot or should not agree on a recommended
settlement, which would not be renegotiated without new information.

Conclusion
This case offers participants insight into what they believe constitutes success in a
negotiation. Is it “winning” by doing better than the other side? Or is it achieving an
objectively good outcome for both parties? Some participants will not settle this case,
although that is against the interests of both clients. The question, “Would more
information about the other side’s BATNA and interests have made this case easier or
more difficult to negotiate?” may reveal how participants define success in a
negotiation. Collaborative problem-solvers tend to say that more information would
have made it easier to negotiate a good outcome, because it is easier to maximize joint
gains and to decide on an appropriate salary standard when there is full information.
Those who say it would be harder may be out to “win” the negotiation; they fear that
revealing their BATNA may weaken them and that the negotiation will deadlock with
each side trying to extract the last dollar from the other. [Special note: This issue can be
tested by following-up the Sally Soprano I debrief with negotiation of Sally Soprano II,
also available from the PON Clearinghouse. The facts are the same as in Sally Soprano I,
except that as a result of a discussion between Sally and the Lyric Opera’s artistic
director, all available information is known by both sides.]

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Sally Soprano I
Sample Preparation Memo

Issues to be considered
1. Salary
2. Publicity
• What will Lyric do?
• What could Sally do?
3. Future contracts between Sally and Lyric
4. Rehearsals
5. Work-related benefits and incentives, e.g., flowers in dressing room, limousine
6. Joint ventures e.g., create records and tapes of performance
7. Other joint gains?

Sally’s Alternatives
Sally’s alternatives to an agreement include:
• Sit home and watch TV on opening night
• Hope for the TV special to come through based on her past performances
• Look for another role
• Volunteer to teach classes on performing arts to get publicity
Discussion of alternatives from the perspective of Sally’s representative:
None of these alternatives is appealing to Sally. She would much prefer reaching an
agreement with Lyric. Her BATNA with Lyric seems to be for her to find another role for
this season. We must determine how likely such an alternative would be, especially
since the season is only three weeks away. Before going into the negotiation, however, I
will want to discuss with Sally what might be done to improve her alternatives. For
example, could she start talking to other opera companies about roles (hopefully, roles
which she already knows) or could she set up a TV or radio interview to discuss her past
performances and her upcoming return to the opera world? I would be stronger in the
negotiation if Sally and I could improve her BATNA by having already set up another
role, even one that she would prefer not to take given the choice between it and the
lead in Norma.

These Teaching Notes were written by the Harvard Negotiation Project. The exercise was written by Norbert Jacker and Mark
Gordon. Copies are available from the Teaching Negotiation Resource Center (TNRC), online at www.pon.org, by email:
tnrc@law.harvard.edu, or by telephone at 800-258-4406. This case may not be reproduced, revised or translated in whole or in part
by any means without the written permission of the TNRC Coordinator, Program on Negotiation at Harvard Law School, 501 Pound
Hall, Cambridge, MA 02138. Please help to preserve the usefulness of this case by keeping it confidential. The original case is
copyright © 1979 by Professor Norbert S. Jacker. New material copyright © 1982, 1985, 1988, 1989, 1990, 1995, 2004, 2012, 2015,
2018 by the President and Fellows of Harvard College. All rights reserved. (Rev. 8/18.)
Sally Soprano I: Sample Preparation Memo

Lyric Opera’s Alternatives

The Lyric Opera’s alternatives to an agreement include:
• Use the inexperienced secondary soprano in the lead role and probably pay her
less than $28,000 (twice her salary in the secondary role)
• Look for other lead opera singers
• Cancel the show
• Start a large-scale publicity campaign featuring the secondary soprano
• Start a publicity drive to lower expectations for this season because of Renata
Risingstar’s sudden unfortunate illness.
Discussion of alternatives from the perspective of Lyric’s representative:
Canceling the show right now would be devastating from a financial perspective and
from the perspective of the opera’s reputation in the operatic community. It is probably
too late to find another lead opera singer because all of the good ones would be in
rehearsal for other operas. Our BATNA is to use our current secondary soprano in the
lead role. This is taking a chance since she lacks experience in demanding lead roles. We
should improve our BATNA before going into the negotiation with Sally’s agent by
starting the secondary singer in rehearsal right away. In fact, tonight I will call the
director and voice coach and tell them to start the secondary in rehearsal first thing in
the morning.

Sally’s Interests:
• Making a comeback in opera
• Proving to the opera world that she’s still good enough
• Enhancing her reputation
• Performing a primary role
• Renewing her relationship with the Lyric Opera
• Establishing a precedent of a high salary
• Receiving treatment appropriate to her past fame
Discussion of interests from the perspective of Sally’s agent:
Before going into the negotiation, I must prioritize these interests. Sally seems most
interested in getting the lead role and less interested in what the actual salary is. Of
course, I recognize that Sally would be happier singing for more money than for less.
She is also concerned, however, that the world views her as a successful and talented
star, despite her age and recent withdrawal from the opera world. Since she also wants
to get the TV role, any option Lyric’s representative and I come up with should take into
account how the media and the TV producers will see Sally. Therefore, whatever
publicity we can arrange, the better the deal will be. I think that Lyric may have a strong
interest in publicity for this last-minute substitution, as well.

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Sally Soprano I: Sample Preparation Memo

The Lyric Opera’s interests:

• Successful run of Norma
• Establishing the precedent of always paying only the appropriate salary
• Not being taken advantage of
• Use of the best available opera singer
• Good box office sales
• Providing and receiving adequate publicity
Discussion of interests from the perspective of Lyric Opera’s representative:
Lyric’s highest priority interest is to get the best possible opera singer for the lead role
so that the season will be a success. It cannot afford, however, to have opera singers
think they can take advantage of Lyric’s misfortune by demanding extraordinary salaries
in a situation like this where the original star cannot perform. On the other hand, Lyric
wants to maintain its reputation of treating its singers fairly. If we reach an agreement
with Sally, both parties will have an interest in a successful run of the opera. There also
seems to be a shared interest in good publicity for the opera and for Sally.

Relationship
What interest does each party have in pursuing a good working relationship?
A good relationship will help Sally in her performance, which benefits both parties.
Consequently both parties need to be able to work well together during the run of
Norma. Because a success is important to both, neither party wants to create a situation
in which one or the other sabotages the performances.

How should that be reflected in the negotiation?

An ideal negotiation in this situation is an amicable one in which the parties feel like this
is a joint problem to be solved by taking into consideration the best outcome for all
involved. Pushing to the last dollar could possibly prevent agreement and would be
counter-productive since both parties are worse off without an agreement.

What interest do the parties have in a long-term relationship?

The possibility of a long-term contract should be discussed as a future possibility to keep
our options open. I should go back to my client to find out if there is an interest in such a
contract. That is not crucial to this negotiation, however.

Other long-term relationships could be beneficial to the parties since both Lyric and
Sally have a certain amount of fame and expertise. They may be able to help each other
out.

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Sally Soprano I: Sample Preparation Memo

Commitment
What would be possible good outcomes of this meeting?
• A firm contract
• An agreement in principle to be shown to Sally and Lyric
• A press release to the media about Sally’s comeback and Lyric’s new star

In reaching this agreement, the commitment must be:

Sufficient: It must cover all interests such as salary, publicity, etc.
Realistic: It must be an agreement that both parties can perform.
Operational: Its terms must be such that it can be carried out as soon as the parties
sign the contract. Everyone must know exactly what he or she is expected to do.

Among the possible outcomes, I believe my client would prefer a firm contract. I have
the authority to commit to a contract for the run of the Norma season. I would need to
consult with my client before agreeing to anything of a more long-term nature.

Communication
I will be much more persuasive if I can show the other party’s representatives that I am
listening to them and that I understand what they are saying. Once they recognize that I
hear them, they can hear what I am saying. If they do not believe that I am
listening/understanding them, they will expend all their energy advocating their
position, and it will be twice as hard for me to persuade them.

How can I show that I’m listening?

• Paraphrase what they say and repeat it back with: “If I’ve heard you correctly, I
think you’ve said that…”
• Maintain good eye contact
• Ask questions
• Acknowledge their concerns even if I disagree with them by saying, for example,
“I understand why you see this as a problem. Let me add my perception of the
situation.”

First, it is important for me to remember that I can acknowledge what they say without
agreeing with them. Second, I must not lead them to believe that my
acknowledgements of what they say mean that I am agreeing with them. For example, if
I tend to nod my head when I am listening attentively I must tell them explicitly that I
hear what they are saying but that I do not necessarily agree entirely. Third, by the tone
I set in the negotiation, I can disagree without being disagreeable.

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Sally Soprano I: Sample Preparation Memo

Appendix A: Some Possible Criteria for Establishing a Salary

Below are some of the possible standards by which one can establish a salary for Sally for
her performance of Norma. Note: The first and the last are not independent or objective
standards.

$45,000 what Lyric is willing to pay to get her to sing

$45,000 last title role in Norma x 2 (for inflation in opera salaries) + $1,000 (because time is
short)

$44,000 last title role x 2 (for inflation in opera salaries)

$38,500 same premium (2.75 x secondary) Sally received 4 years ago when she sang lead

$36,000+ best recent secondary role x 2 (for lead) + some adjustment for inflation

$31,250 what Lyric paid last year’s lead + 25% for inflation

$31,250 Sally’s last secondary role with the Lyric x 2 (for lead) + 25% (one year’s inflation in
opera salaries)

$30,000 what Lyric would have paid Renata Risingstar, the soprano originally cast as
Norma

$30,000 last year’s secondary role x 2 (for lead) + 25% (one year’s inflation in opera
salaries)

$29,999 less than Lyric would have paid the other singer because Lyric preferred her to Sally

$28,000 current secondary role x 2 (for lead)

$25,000 Sally’s lowest-paying secondary role in past 2 years x 2 (for lead) + 25% (inflation)

$25,000 what Lyric paid Sally last year (secondary role) x 2 (for lead)

$20,000 Sally’s lowest-paying secondary role in the last two years x 2 (for lead)

$18,000 Sally’s highest-paying recent (secondary) role

$15,000 lowest payment Sally has received in the last 2 years + 50% (inflation)

$12,500 what Lyric paid Sally last year for secondary role

$10,000 lowest payment Sally has received in the last 2 years

$0 what Sally said she’d be willing to accept for the lead role in Norma

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Sally Soprano I: Sample Preparation Memo

Appendix B: Illustrative Components of Agreements

Percentage of gate to go to Sally:

• X percent of excess over average gross ticket sales
• X percent of excess over last five operas put on by Lyric
• X percent of ticket revenues after Sally’s name is publicly announced minus
average ticket sales in three weeks prior to opening
• X percent of ticket revenues over Lyric’s break-even point
• After 75 percent of seats sold for a given performance, X percent of ticket
revenues if house is 75 to 85 percent full, Y percent of ticket revenues if house is
85 to 95 percent full, and Z percent of ticket revenues if house is 95 to 100
percent full

Advertising
• Lyric agrees to $X advertising budget
• Lyric agrees to increase existing advertising budget by $X (or X percent)
• For every three dollars increase in the Lyric’s advertising budget, Sally will
contribute a dollar to the Lyric (subject to ceiling of $X contribution by Sally)
• Sally and her agent get input into content of ad campaign
• Sally gets superstar comeback buildup in Lyric’s advertising

Superstar perks for Sally:

• Enormous limo for Sally during entire run of Norma
• Dressing room and hospitality room, each with big star on door, fully stocked
with goodies
• Dozens of roses to be thrown up on stage by adoring fans (to be planted by Lyric)
after each performance
• Huge opening night gala, complete with show-biz stars, searchlights, and lots of
media

Other components
• Sally and Lyric agree to create records and tapes of the performance; they will
cut a deal on the royalties and jointly negotiate with the recording company.
• Sally and Lyric agree to pack first three rows with enthusiastic fans each night to
precipitate tumultuous ovations.
• Sally agrees to conduct master classes at the Lyric, locking in long-term
employment for Sally and opera world notoriety for Lyric.
• Sally agrees to specifically plug the wonderful people at the Lyric on national
prime-time TV if the television deal comes through.
• Lyric agrees to hire the best make-up artist in the business to make Sally appear
more youthful and vibrant.
• Lyric agrees to pay Sally $100,000 for the role (payable over 20 years, so present
value is about $20,000).

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Sally Soprano I: Sample Preparation Memo

• Lyric pays Sally $45,000 and she agrees to contribute half to Lyric’s newly
established “Sally Fund” to aid struggling young sopranos.
• Sally sings for nothing in charity run of Norma and Lyric contributes all net
proceeds to the Sally Fund.
• Lyric pays Sally $45,000 and she agrees to match dollar for dollar any corporate
contributions to the Sally Fund that are raised by the Lyric’s business manager.
• Sally gets an extra $5,000 and agrees to buy any unsold tickets at half the box
office price (up to a ceiling of $10,000) and to arrange for distribution of those
tickets to students in arts programs, retirement homes, widows, orphans, etc.
• Lyric flies Sally down to Brazil for a quick facelift.

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 A university consortium dedicated to developing the theory and practice
of negotiation and dispute resolution. Harvard | MIT | Tufts

Sally Soprano I
Confidential Instructions for Sally’s Agent

You have just become a partner in a firm that manages and acts as agent for celebrities.
Sally Soprano is certainly not a major client, but you want to do a good job with this first
assignment as a partner, especially since you have an interest in expanding your firm’s
opera practice. This is the first time you have handled Ms. Soprano’s account.

You met Ms. Soprano yesterday. She is an older soprano who still has a good voice,
particularly for her age. During your discussions with her, you gathered the following
information:

She has not had a prime role in more than two years, although she has had a number of
secondary roles. Her popularity has declined somewhat in the past few years. Lyric
Opera, with whom Sally has sung many times over the years, has a production of
Bellini’s Norma scheduled to open in three weeks. The challenging title role is generally
acknowledged to be a prize for a young soprano. When the Lyric announced this
season’s schedule over a year ago, Renata Risingstar was listed in the title role for

Review Copy
Norma. Ms. Risingstar is generally regarded as a first-rate performer, although she has
not yet attained the popularity Sally enjoyed at the peak of her career. Three weeks ago,
Ms. Risingstar’s name was suddenly dropped from the opera’s advertising, and rumors
began circulating that she had either become ill or gotten into a dispute with the artistic
Do Not Reproduce
director. Sally got in touch with the artistic director to ask if the title role was open. Sally
knows the part well and has sung it successfully many times. Yesterday Sally was
informed by the Lyric that they might be interested in signing her for the Norma role. A
meeting has been scheduled for today between you, as Sally’s agent, and the Lyric’s
business manager to discuss the situation.

The Lyric Opera is an established institution in a major metropolitan area. As with most
opera companies, it is a not-for-profit entity that is financed by a combination of ticket
sales, foundation and corporate grants, and income from a modest endowment. It
usually breaks even over the course of the year, with fairly good attendance in its 2,000-

This case was written by Norbert S. Jacker of DePaul University, College of Law. It has been revised, expanded and adapted for the
use of the Harvard Negotiation Project by Mark Gordon, Bruce Patton, Wayne Davis and others. Copies are available from the
Teaching Negotiation Resource Center (TNRC), online at www.pon.org, by email: tnrc@law.harvard.edu, or by telephone at 800-258-
4406. This case may not be reproduced, revised or translated in whole or in part by any means without the written permission of
the TNRC Coordinator, Program on Negotiation at Harvard Law School, 501 Pound Hall, Cambridge, MA 02138. Please help to
preserve the usefulness of this case by keeping it confidential. The original case is copyright © 1979 by Professor Norbert S. Jacker.
Copyright © 1985, 1989, 1990, 1995, 2004, 2012, 2015, 2018 by the President and Fellows of Harvard College. All rights reserved.
(Rev. 8/18.)
Sally Soprano I: Confidential Instructions for Sally’s Agent

seat hall. Ticket prices range from $18 to $55. This production of Norma is scheduled to
run for six weeks, with three performances per week.

Sally desperately wants this role. It could signal a real comeback and would give her a
good chance at an important role in a forthcoming television special on opera. The TV
special would pay $45,000 and would probably lead to many other singing
engagements. Sally was overjoyed at Lyric’s possible interest in her. Sally has told you
that getting the part is what counts; the amount of compensation is secondary. She told
you that, frankly, she would be willing to sing the part for nothing, except for reasons of
professional pride, reputation, and the potential impact on future engagements,
although the higher the price the better.

Sally’s salary over the last two years for secondary roles in operas of this type has
ranged from $10,000 to $18,000. Four years ago, when she was at the pinnacle of her
career, she received $22,000 for performing the title role in Norma at the Lyric. Since
then, due to inflation and the increased popularity of opera, the amount paid to top
opera singers has nearly doubled. Sally recognizes, however, that she cannot count on
producing sold-out performances the way she could then.

Last year, the inexperienced young soprano who sang the title role of Norma for the
Lyric was said to have been paid over $24,000. The last time Sally sang for the Lyric was
over a year ago, in the secondary soprano role of Adalgisa, also in Norma, for which she
received $12,500 and received reasonably good reviews. Although it is difficult to
generalize, performers in lead opera roles of this type are usually paid at least twice the

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amount received by singers in secondary roles.

Sally believes that her experience and maturity make her particularly appropriate for
the title role. Norma is the high priestess of the Temple of Esus. She is secretly married

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to the Roman Consul and has had two children with him. There are two other sopranos
in the opera: Adalgisa, the virgin of the temple, and Clotilde, the attendant to Norma.
Sally feels that, given her age, she would no longer be the best person to play the role of
Adalgisa or Clotilde. However, she believes that at this stage of her life she relates well
to the role of Norma. In fact, Sally’s view is that she actually may have been too young
when she performed the role of Norma in the past and that she would perform this role
better today.

One of the Lyric’s major concerns is the attendance Sally’s performances would
generate. The Lyric is said to average around an 85 percent house over the course of a
year, but many performances are sold out. On the other hand, a bad house can be
financially devastating for the annual budget. While her voice remains strong, she has
had a few mediocre days, which wasn’t true four years ago. That is one reason why you
think Sally has been offered fewer roles recently. If Sally’s performances generated a 50
percent or 60 percent house, this would almost surely be her last leading role. In fact,
anything under 80 percent would probably finish her career. Sally is confident, however,

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Sally Soprano I: Confidential Instructions for Sally’s Agent

that a 50 percent or 60 percent house would be extremely unlikely to occur as a result

of her contribution.

Prepare for your meeting with the Lyric Opera’s Business Manager.

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reserved. (Rev. 8/18.)
 Review Copy
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 A university consortium dedicated to developing the theory and practice
of negotiation and dispute resolution. Harvard | MIT | Tufts

Sally Soprano I
Confidential Instructions for the Lyric Opera’s Business Manager

You have been with Lyric Opera for three months. So far, things have been going well,
but your negotiation with Sally Soprano’s agent will be your most important assignment
to date. You want to make sure that your boss, the artistic director, is pleased with the
outcome.

You met with your boss yesterday, and gathered the following information:

The Lyric Opera is an established institution in a major metropolitan area. Like most
opera companies, it is a not-for-profit entity and is financed by a combination of ticket
sales, foundation and corporate grants, and income from a modest endowment. It
usually breaks even over the course of the year, with fairly good attendance in its 2,000-
seat hall. Ticket prices range from $18 to $55, with $28 a reasonable average for rule-of-
thumb accounting.

A production of Bellini’s Norma is scheduled to open in three weeks. The production is

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scheduled to run for six weeks, with three performances per week. There are three
sopranos in Norma. Norma is the high priestess of the Temple of Esus and is secretly
married to the Roman Consul, with whom she has two children. The other two soprano
roles are those of Adalgisa, the virgin of the temple, and Clotilde, the attendant to
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Norma. The challenging title role is generally acknowledged to be a prize for a young
soprano, although the age of the character is not specified. The age of the children is
also unspecified, but Norma attempts to kill them in a rage over her husband’s infidelity.

When the Lyric announced this season’s schedule more than a year ago, Renata
Risingstar was listed in the title role for Norma. Ms. Risingstar is generally regarded as a
first-rate performer, although she has not yet attained the popularity Sally enjoyed at
the peak of her career. Three weeks ago, however, the Lyric suddenly dropped Ms.
Risingstar from its advertising for Norma. Although it is not widely known (the opera
wanted to hold off making a public announcement until the diagnosis was confirmed),
the reason for the omission is that Ms. Risingstar has developed a benign throat tumor
This case was written by Norbert S. Jacker of DePaul University, College of Law. It has been revised, expanded and adapted for the
use of the Harvard Negotiation Project by Mark Gordon, Bruce Patton, Wayne Davis and others. Copies are available from the
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preserve the usefulness of this case by keeping it confidential. The original case is copyright © 1979 by Professor Norbert S. Jacker.
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(Rev. 8/18.)
Sally Soprano I: Confidential Instructions for the Lyric Opera’s Business Manager

that will require surgery prior to the performance date. The Lyric has been unable to
find any other good soprano who is available for the dates of the performance. The
soprano engaged for the secondary role (at a salary of $14,000) knows the Norma role.
She has a good voice but is a relative newcomer to professional opera and clearly lacks
the experience necessary to perform the title role well. The Lyric is therefore in a tight
spot. Cancellation of the opera would result in a loss of hundreds of thousands of
dollars.

Fortunately, Sally Soprano, a distinguished though somewhat aging soprano, heard

rumors that the opera was in trouble and called the artistic director to inquire whether
there was any possibility that she might sing the lead. Up to now, the artistic director
has held her off, hoping to find a younger lead. Unfortunately, that now appears
impossible, and the artistic director is suddenly quite desperate to sign Sally. You have
scheduled an early appointment with her agent.

Sally Soprano has sung many times for the Lyric Opera over the years, but the last time
she sang was more than a year ago in the secondary role of Adalgisa, also in Norma, for
which she received $12,500. Four years ago, at the pinnacle of her singing career, the
Lyric paid Ms. Soprano $22,000 for performing the title role in Norma. That was
regarded as extremely high at the time, justified only by the fact that Sally was at the
apex of her career and had a significant following, which has probably fallen off
somewhat since then. On the other hand, over the last four years, inflation and the
increased popularity of opera have in general brought about a near doubling of the
average salaries of the top opera stars.

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As a matter of policy, the Lyric does not generally disclose the compensation of its
performers. However, for negotiating purposes, you have been given access to the
salary figures paid by the Lyric in recent years for the title and secondary roles in

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Bellini’s Norma:

Title Role Secondary Soprano

(Norma) (Adalgisa)
Five years ago $14,000 $ 7,000
Four years ago $22,000 $ 8,000
Three years ago $17,500 $ 9,000
Two years ago $21,000 $12,500
Last year $25,000 $12,000
This year ? $14,000

Although cases vary widely, as a general rule the Lyric tends to follow the industry
practice of paying performers in lead opera roles of this type about twice the amount

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reserved. (Rev. 8/18.)
Sally Soprano I: Confidential Instructions for the Lyric Opera’s Business Manager

received by singers in secondary roles. Also, following the industry practice, the Lyric has
always paid its performers a flat rate salary.

In general, the nonprofit Lyric needs to keep the costs of performances as low as
possible. The Lyric’s average house over the year is generally 85 percent. This is also the
break-even point. Of course, there have also been many sold-out performances, but the
average is 85 percent, give or take five percent. Anything less than 80 percent
attendance would cause the Lyric to lose $50,000 or more, and a house of 50 percent or
60 percent, while unlikely, would be a disaster. (These kinds of figures probably explain
why Ms. Soprano has had so few offers for lead roles recently. While her voice remains
fine, most operas are anxious to avoid even the smallest chance of an off day.)

This year, Ms. Risingstar was to have been paid $30,000. In view of the emergency
situation and the great desire of the artistic director to obtain Sally Soprano, the Lyric
trustees have authorized you to offer her up to $45,000 should that be necessary. If she
holds out for more than that, the Lyric will just have to use the neophyte secondary
soprano in the title role and hope that she miraculously rises to the occasion. (You
would probably pay her something less than double her secondary salary of $14,000 for
that, certainly no more than $28,000.) You should also bear in mind the potential
adverse impact on future negotiations with other performers should an unusually high
salary for Sally become public knowledge.

The artistic director wants Sally, despite thinking that she is too old for the role. The
director believes that with proper makeup and a little luck Sally could work out

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extremely well. In any event, there is little alternative. As it is, the late announcement of
the title role may adversely affect box office sales. The artistic director is hoping,
however, for a favorable public response to the announcement of Sally in the title role.

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Prepare for your meeting with Sally Soprano’s agent.

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reserved. (Rev. 8/18.)