Case Study Analysis Part a : Power Play for Howard

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Briefly summarized the case.

Juwan Howard, 23- year-old, negotiation case dealt with a basketball player bargaining between two teams (Washington Bullets and Miami Heat) struggle of team allegiances and negotiation of contract. Howard was drafted in 1994 by the Washington Bullets, a junior from University of Michigan with an 11-year salary for $37.5 million with an option of becoming a free agent after two years. He signed but thought the contract amount was less than what he was valued. Juwan loved playing in Washington D.C; he established himself and valuable in the National Basketball Association (NBA) commodity becoming a team favorite by all fans, and active in the community.

The summer of July 11, 1996, Juwan Howard became the club’s all-star free agent represented by David Falk owner of Falk Associates Management Enterprises (FAME) arrived at his office to bargain for $100 million contract to Washington Bullet offer from the National Basketball Association (NBA) team executives. Washington Bullets General Manager, Wes Unseld sat down and made an offer of seven-year for $78.4 million dollar, in which would have amounted to $136,000 per game from 2002 to 2003. Howard became tearful and very disappointed remembered the team managers promised they would do whatever they could to keep him on the team.

Pat Riley coach of the Miami Heat offered Howard $91 million and $3.5 million in bonuses. The Bullets countered offered Howard $84 million. Miami Heat executives and Pat Riley after hearing about the amount Washington offered Howard became interested offering a seven-year guaranteed $100.8 million, which was the biggest in the team history with perks of luxury hotels and limousine service. The Bullets then offered Howard $94.5 million, Falk rejected the offer and the next day the Bullets canceled Howard’s existing contract saying they would part ways and look at other free agents. After 30 days of back and forth of negotiations, Howard decided to sign...
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