WSJ: A Chat w/Harbaugh's Lawyer - fascinating details

Submitted by NoVaWolverine on

Don't think this has been posted yet -- the Wall Street Journal has an interesting interview w/Jeff Klein of Weil Gotshal & Manges, who represented Harbaugh in the negotiations w/UM. He specializes in handling thorny matters for sports figures (the article offers the example of Joe Torre leaving the Yankees for the Dodgers.)

It'll be interesting to eventually hear all the details of how JH to Michigan came about, but based on this interview and what we heard yesterday, a few things are becoming clear:

  • Harbaugh's agent, David Dunn, was essentially out of the loop on this -- which makes it likely he was the one leaking the (incorrect) contract numbers and pushing the "Jim wants to stay in the NFL" stuff to NFL reporters
  • JH had decided a while ago that he wanted the Michigan job, and it was Klein's job (and his pal John Denniston's, apparently, as well) to handle all the negotiations w/UM so he could stay focused on finishing things out w/the 49ers' season.

Key excerpts:

To the matter at hand. How did you land Jim Harbaugh as a client?

The short answer: I have no idea. Often, you know how you land a client — who refers you. But not here. I was cold-called by an associate of his. I met that person and then met Jim.

I take it the representation began this fall?

It did. I don’t really want to be more specific than that.

Interpret "this fall" as you will. Sounds to me like JH got the ball rolling through Klein w/Michigan and Hackett a while ago, probably as soon as Hackett was named interim AD.

More:

The whole deal — from leaving the 49ers to joining Michigan — seemed to happen quickly and, at least from the outside, smoothly. What sorts of things did you have to accomplish to get the deal done?

I’m wary about saying too much and stepping into privileged and confidential material. But what I will say is that I focused, as I always try to, on three important touchstones: confidentiality, a strategic sequencing of events, and the client’s desire.

Jim was about to essentially become a free agent. Some free agents like a lot of publicity. But from my perspective, that’s putting ego ahead of outcome. There was no publicity here. I prefer to do my job below the radar screen and like to make deals in the boardroom and not the back pages [of the newspaper]. If you look at how Jim conducts himself, he’s the same way. So from that perspective, I think we were a good fit. In many ways, he was a dream client.

[...]

But it was important to get this done discreetly and with no publicity. Jim needed and wanted to stay focused on coaching the 49ers up through the final game [on Sunday]. If you watched how he coached that game and the way the team played for him up until the very last whistle and the very last play, you can tell where his mind was and where his dedication was. My job was to help him be able to keep that focus.

He left his last position in the manner he wanted to. He was the coach of the 49ers until the very end.

The backroom-detail story of how Jim came home to Michigan will make for a fascinating article/book someday....

 

 

 

 

Alton

December 31st, 2014 at 11:19 AM ^

I liked this:

Harbaugh has a reputation as being a straight-shooter. He’s known as intense and focused, and all that certainly shows through watching him manage a game from the sidelines. How did you find him?  

I found him to be all of those things. He has very clear goals, and certainly lets you know he’s in charge. He gives direction, but also gives those who work for him sufficient latitude to do their jobs. He is a good listener, very smart and welcomes frank dialogue. Basically, he’s terrific from a lawyer’s perspective.

MGoVictory

December 31st, 2014 at 11:24 AM ^

Thanks for sharing.

I also like this part:

 

You’re in Ann Arbor today. What’s your role today?

I hope not to have too much of a role today. I hope to enjoy it. I spent a lot of my holiday thinking about this, and I hope to enjoy the moment for my client. This is about him. But I am going to call my 104-year-old uncle, who’s a huge Michigan football fan and an alum, and talk to him about it. That should be fun.

 

104. That would probably mean class of '32 or '33, which means he was around for the national championship years of 1932 and 1933.

team126

December 31st, 2014 at 11:21 AM ^

Once Hoke's team got beaten up by Fight Chickens that bad, then Utah, then Minnesoda, even if Pizza man is still here Hoke would be let go.

Let's hope JH builds his house here and makes it a truely permanent address. We shall win some games!

 

PurpleStuff

December 31st, 2014 at 12:10 PM ^

Even if he knew what was going on, he has an interest in promoting his client and fielding offers.  A perceived bidding war makes sure Jim can consider every possible offer and it creates a rising tide that helps other coaching clients throughout the league.  A team that missed on Harbaugh is presumably more likely to pay up for option #2.  Even the leaking of contract details makes Jim look good now that we know the actual deal was for less than the mega record contract originally reported.

The folks who I know for a fact were out of the loop were the NFL reporters who kept acting like Jim was looking at NFL teams even after SF immediately let him out of his contract, something they never would have done if another NFL team was a serious option.  Either they were stirring shit for clicks or are ridiculously dumb.

The_Mad Hatter

December 31st, 2014 at 12:28 PM ^

By out of the loop I meant not directly involved in the negotiations between JH and Michigan.

It makes sense for the NFL agent to keep JH in the NFL if at all possible.  After all, now that JH has come back to college he won't be getting his cut of Jim's salary anymore.

Personally, I think that the $48/49 million offer was "leaked" by someone from the Michigan side.  If for no other reason than to scare off the cheaper NFL teams from even making a play.

Idk, I'm still drunk on Harbaugh joy.  I shouldn't be trusted to operate heavy machinery or a computer for several more days.

PurpleStuff

December 31st, 2014 at 12:49 PM ^

People have reported the leak came from both sides and it makes sense that it would.  Dunn is trying to land Harbaugh a megadeal in the NFL.  Even if Jim doesn't take it, a team willing to fork over that kind of money helps Dunn and all NFL agents in future negotiations.  And like you said, Michigan wants to scare off NFL teams.

My guess is the agent knew Jim was dealing with UM and would likely end up there, but that stoking the NFL flames was good for all parties (his other clients see an overall rise in pay, Michigan looks like they beat out a multitude of pro teams while paying less money, Jim looks like a boss, etc.). 

It was just annoying that we had to deal with NFL folks passing along every nudge of the coals as news rather than digging deeper and seeing what in hindsight looks like a case where Jim chose UM a while ago and had a deal in place the second the 49er season ended.

PurpleStuff

December 31st, 2014 at 1:54 PM ^

You have to wonder how much posturing was going on from NFL teams.  I find it hard to believe that notorious cheapskate owners were ready to roll out the big bucks and give personnel control to Harbaugh (even if that would probably be a good idea for their team).  Seems like they wanted to look like they were interested without making any serious overtures and were more than happy to see a college team pay up to land him.

If I'm a reporter and guys at the Raiders and Bears whisper they are going after Harbaugh, I suppose it is hard to ignore those guys or straight up call their bluff.  But once the Niners were willing to let him go (with no compensation as they were entitled to from an NFL team) the charade was up.  Yet people like Rapoport and Flanagan still didn't see through it.  That is when it got really ridiculous for me.

BlueInClearwater

December 31st, 2014 at 12:25 PM ^

about the tweets from the tweeter formally known as thosewhostay7 who was giving updates about Dunn meeting with Harbaugh after the Niners got eliminated from the playoffs to discuss his future and gave Michigan-centric positive updates. If Dunn was out of the loop, I have no clue how he supposedly said too much and had to delete his Twitter account and posts, or how his source close to Dunn would've got any info in the first place. Seems like the info he got would have been NFL-centric if Dunn really was the one leaking info to the press.

MGoBrewMom

December 31st, 2014 at 11:22 AM ^

This is highly interesting. Thanks for sharing it. Always wondering what the real story it, this seems credible (WSJ, and the source), and it makes sense. I'm sure the agent would have preferred the bigger contract that JH could have gotten.

SGBlue

December 31st, 2014 at 11:22 AM ^

Further shows me that Jim has a nose for excellence. His counsel displays all of the traits I'd look for in someone representing me in a very high stakes situation. Oh, and he shows that there are lawyers out there with some redeeming qualities (he says to appease his MGoAttorney spouse :-).

Johnny10er

December 31st, 2014 at 11:23 AM ^

And Jim saying yesterday how fast everything happened, and Hackett feeding him the "yesterday" answer during q and a, I get the feeling we were all on edge for a while and this thing was already wrapped up.
I'm sure the when things all happened question will always be a bit in the dark, but man, it seems like this was pretty much set in stone for a while.

It Happened

December 31st, 2014 at 11:59 AM ^

I agree. Hackett was very quick to throw in the "yesterday" comment when Harbaugh paused for a second thinking about the question. This thing has been done since way before yesterday. Not sure all the details, but I'm pretty confident they had some kind of deal worked out with both Jim and the 49ers that has made this thing "official" for a while.

Tater

December 31st, 2014 at 1:29 PM ^

My guess is that they "agreed to agree."  I agree with the sentiment that the deal was "done," but I think they used a layer of semantics to keep it from being official.  That way, Jim Harbaugh could do his job in San Francisco and walk out of a classless situation in the classiest way possible.

M-Dog

December 31st, 2014 at 12:07 PM ^

I made the comment in November that if Jim Harbaugh is coming to Michigan, he's already made that decision.  I still believe that.

I think you are right about us being on edge and hanging on 52.345% / 47.655% predictions while the deal was already wrapped up and just being polished.

Hackett did a great job, but he did not "get" Harbaugh.  He made it feasible so that Harbaugh could do what he already wanted to do.

Harbaugh to Michigan was no lucky shot miracle.

 

Johnny10er

December 31st, 2014 at 1:45 PM ^

Theory:
Someone, or some group (regents) decided early in the season a wholesale change needed to be made.
Harbaugh contacted, interest given. Stipulation, not with DB there. "Fine, he gone."
Attendance, coke, and emails make this easy.
Hackett hired, calls Jim. Knows day one he is in. Hires smoke and mirror search firm.
Attorneys work out deal. Jim won't say yes until after Brady has officially been fired. Shortly after, agreement is made.
4 people know what is happening, but won't tell us to chill the fuck out until yesterday.

I also wouldn't be surprised to hear Jim called Brady to ask if he would be ok with him taking the job.

Yooper

December 31st, 2014 at 11:32 AM ^

This was interesting.  Besides the behind the scenes stuff, it points out how differently agents and lawyers act, and how for certain tasks you want one vs. the other.  I have never understood why more sports figures don't use lawyers only for these negotiations.  It is a more professional approach and you save a lot of money paying by the hour vs. a percentage take. 

Huma

December 31st, 2014 at 11:35 AM ^

Great point. Using a lawyer instead of an agent removes the potential conflict of interest between the client and agent. The client wants the best overall deal (of which financial comp is a huge part) but the agent gets paid a commission based solely on that comp, so the agent's incentivized to maximize comp, even to the detriment of other important deal points that may not directly increase comp.



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lastofthedogmen

December 31st, 2014 at 11:56 AM ^

As I recall a couple articles at the time, Harbaugh's first nfl contract was done without an agent. Reports were that he walked into the Chicago GM's office in fatigues, carrying a toy assault rifle, and said something like, "Ok, let's get this done." He got an average contract, but certainly less than he could have as a first round pick. That incident has stuck in my mind ever since, and has always made me doubt those who think he's going for the money.

samsoccer7

December 31st, 2014 at 12:22 PM ^

But players need an agent to help with marketing deals and to work on negotiations if the player isn't happy, is looking for a new team, etc. These players need someone on their behalf and interested in their outcome (hence the 10%incentive).

JamieH

December 31st, 2014 at 11:33 AM ^

why Hackett gave this guy a shout out at the press conference.  This is the guy that kept a lid on everything during the entire process and had the NFL reporters running around chasing their tails.

double blue

December 31st, 2014 at 12:14 PM ^

His shout out was to Denniston not Klein as i recall, but i imagine Denniston was the referral.  Either way, it is apparent this was a deal that both sides wanted badly and getting a fair, well constructed deal away from the limelight was what they desired.  A great piece and awesome news.  Jim wanted to come home.  Just makes you wonder if he wanted to back in 2011 as well and if Brandon's ego was in the way.   In the end, while i hate last season, this all sets up the Harbaugh era very nicely.  I don't think this story is as big, as powerful and as emotional if he had come at another time.