Power Play for Howard

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Power Play for Howard This case study reviews the negotiations of Juwan Howard during the 1995-96 National Basketball Associations (NBA) player recruitment. Juwan started his career with the Washington Bullets and preferred to stay with the team. However, the team did not meet his desired pay of $100 million dollars for his services. Howard chose to begin negotiations with the Miami Heat. During these negotiations the NBA teams must remember the cap, or salary amounts that are being set by the NBA. They are not allowed to exceed these amounts or they pay hefty fines. This paper will review the negotiations between Juwan Howard and the two teams. Discussions will center around tangible and intangible benefits, costs, and risks from both Juwan Howards' perspective and the perspective of the general managers from the teams trying to recruit him. Tangible (Juwan's Perspective) Juwan Howard seeks the highest compensation and benefits for his services as a National Basketball Association player. He is hoping that the Washington Bullets would offer approximately $100 million for his contract renewal because Juwan believes he is worth that much as a key player and wants to remain in Washington. According to Wes Unseld, the Bullets General Manager, the team could only offer $78.4 million for seven years (Barry, Lewicki, Saunders, 2007). Juwan believes this is an unacceptable offer. According to Pat Riley, President of Miami Heat, his team offered Howard $100.8 million and other benefits for a seven year deal (Barry, Lewicki, Saunders, 2007). Howard chose to take the deal with Miami because he believes that he is worth that offer. After the NBA denied Howard’s contract with Miami, Howard was left with few options. A small possibility exists that the appeals process and arbitrations would rule in favor of Miami and Howard. If this appeals process does not settle in

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