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Case Study Analysis Part a: Case 3, “Power Play for Howard”

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Power Play for Howard
Organizational Negotiations – MGT/445

Power Play for Howard
In the National Basketball Association (NBA), players and teams negotiate multi-million dollar contracts every year. The risks, costs, and benefits of each potential decision affect the outcome of the negotiations. In the negotiation for Juwan Howard prior to the 2002-2003 season, the Miami Heat and the Washington Bullets attempted to secure a contract with the basketball star. Summarizing the Juwan Howard negotiation case, followed by an analysis of the benefits, costs, and risks for the player and the teams highlights the advantages and challenges faced in a high-profile negotiation.
Case Summary
This case describes the negotiation process of Juwan Howard, free agent forward of the Washington Bullets, by his agent David Faulk. Faulk’s objective was to solicit a $100 million contract offer for his star player. Wes Unseld, manager of the Washington Bullets, offered a seven-year, $78.4 million contract. Faulk refused Unseld’s offer. In an attempt to gain Howard for themselves, Miami Heat manager Pat Riley offered $100.8 million, luxury hotel suites, and limousine service. The Heat prevailed, and Howard signed. However, a dispute arose between the Miami Heat and the National Basketball Association (NBA).
NBA officials concluded that the Heat had exceeded the salary cap set by the NBA. Because of this dispute, the Washington Bullets obtained another chance to bid for Juwan Howard. The Washington Bullets matched the Miami Heat’s bid and offered Howard $100.8 million, plus an additional $4.2 million to cover state income tax (Lewicki, Saunders, & Barry, 2006). Ultimately, Juwan Howard stayed with the Washington Bullets and played for the team he loved.
Tangible and Intangible Benefits
Had either team been successful in securing Juwan Howard’s contract, they would have

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