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 beenengaged 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 thelead was to have been paid $30,000, and the rather inexperienced secondary soprano is beingpaid $14,000. (Industry practice is that lead roles receive about twice the amount received bysecondary role singers.) Four years ago, at the height of her career, Sally received $22,000 forthe lead role, but inflation and an increase in opera's popularity have nearly doubled the salaryscale since then.

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

As Sally's agent, what advice would you give her regarding this negotiation?

If you were brought in as an arbitrator in this case, what salary would you award to Sally? Why?