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Power Play for Howard

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A Power to Play for Howard is a case study about a 23 year old basketball player facing a difficult decision of negotiating a contract of a lifetime between the Washington Bullets and Miami Heat basketball teams. On July 11 Howard arrives at the headquarters of agent David Falk in Chevy Chase Pavilion to solicit a $100 million contract offers from National Basketball Association team executives. Initially Howards’ aspiration was to continue as a member with the Washington Bullets; except he needed to believe he was a commodity to the franchise and a higher paying contract offer would determine how loyal the franchise is to him. The fans of the Washington Bullets made Howard feel like he was the best player the team has ever had, except the executives were not willing to offer him a contract worth his market value. Howard learned he had to leave a team and city that he has learned to call home and move on to a new beginning in a city that he was not familiar with. The offer from Riley the team executive of Miami Heat welcomed Howard and he also felt appreciated.
Howard’s target was to solicit a $100 million contract from team executives. The first offer of $78.4 million contract from the Unseld the general manager of the Washington Bullets was Howard’s resistant point. The offer from Unseld was one that Howard was not willing to negotiate. He initially dismissed the contract. One should consider Howard’s target goal of $100 million, although neither of the team executives were aware of Howard’s target; the $78.4 million offer placed him in an uncompromised position. Riley the team executive for the Miami Heat basketball franchise offered Howard $91 million plus $3.5 million in bonuses. The offer from Riley was not Howard’s target, but this gave Howard room to negotiate. After realizing that Riley offered more Unseld with the Bullets gave Howard a final offer of $84 million. Unseld’s offer was an ultimatum. Howard realized it was time to cut his losses with the Bullets and continue with another franchise. After negotiating with Riley, Howard and the executives of Miami Heat came to a deal of $100.8 million garnished with luxury hotel suites and limousine service during road trips. Riley’s offer to the 23-year-old basketball player was literally a dream come true. Any successful negotiation involves tangible and intangible resolution. Juwan Howard wanted to go play for the Miami Heat basketball team the team offered a $100.8 million deal. Howard agent was negotiating a deal with the current team that Juwan was playing on. However after the owner and general manager told Juwan he was not worth the money he was asking for they only wanted to offer him $78 million, Juwan thought that was unfair because he was loyal to them by the end of the year he was a free agent. Unseld who replace Nash as the general manager of the team offered Juwan a seven year contract but Juwan and his agent declined the offer.
Both of the teams could benefit by having Juwan on their team as a player. Juwan could bring revenue to Washington considering the team had not won a game in nine years. However in the end Juwan stayed with the team and because of the tangible and intangible way he and his agent negotiated he got the best deal and signed a $100 million contract and $105 million contract.

Cost and risks associated with Juwan Howards case could be summed up in two words: a lot.
All parties involved have risks that they may have to consider. The Bullets risked losing a star player that could revive the team that had a nine year losing streak to break. They also risk the respect of the other players on the team when they decided to offer more material items to get him. The Heat also risked a lot of money to get Juwan to play for their team. However the NBA was not willing to risk the cost that each team was offering Juwan. Juwan risk the stardom the he had in Washington. Leaving the Bullets was not what he wanted to do. Doing so would discredit his star status joining a team that already had stars. Miami would have to learn to love the player when the bullets already did.
The cost associated with this case are in the millions the Bullets made an offer of 78 million. The Heat upped the offer to a 7 year 108 million dollar guarantee, which became the largest amount in NBA history. The Bullets would not be out done. The needed Juwan and he were worth a lot more to them.
In the end Juwan was able to play for the team he wanted and the negotiations were thrown out the window. What really mattered was his happiness in the end. The Bullets fans were happy because they also got what they wanted, a star to bring them back from the dead

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Reference
Barry, B., Lewicki, R., & Saunders, D. (2006). Negotiations (6th ed.). New York, NY: McGraw- Hill.

Barry, B., Lewicki, R., & Saunders, D. (2007). Reading, Exerci

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