November 11, 2010
The Power Play for Howard Paper
Negotiations provide the framework in today’s corporate world and every day corporations make multimillion-dollar deals (Bazeman, Magliozzi, & Neale, 1985,pp 296). Before making a final decision in the negotiation process, one must evaluate the benefits both tangible and intangible. The negotiation process between Howard, the Miami Heat, and Washington Bullets shows how complex the negotiation process can be. Distributive and integrative bargaining was both used in the negotiation process. The tangible and intangible benefits, the cost, and the risks related to the negotiation of Juwan Howard’s contract between the Washington Bullets and the Miami Heat within the paper.
Power Play Synopsis
The case study; “A Power Play for Howard” is about Juwan Howard, a distinguished National Basketball Association player. A junior from University of Michigan, Howard was the fifth draft pick in 1994 and accepted an 11-year salary for $37.5M with an option of becoming a free agent after two years. After proving his ability as a major point maker with the Washington Bullets, at the end of the 1996 season Howard became a free agent and in position to re-negotiate his salary. Before signing contracts with the Washington Bullets or the Miami Heat there was a significant amount of negotiations that took place. On July 17, Howard excitement began dreaming about signing a $100.8 million dollar contract with benefits with the Miami Heat.
The excitement ended on July 31 when the chief legal officer of the National Basketball Association informed the Heat that Howard’s contract $9 million would exceed the salary cap. On August 1, Howard became a free agent again and returned where he started, the Washington Bullets. On August 5 because of a tangible agreement called the Larry Bird rights, Washington Bullets offered Howard a $105 million contract.
Tangible and Intangible... [continues]
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