A Power Play for Howard - Costs and Risks Analysis Associated with Negotiating Juwan Howard's Contract
Autor: jon • September 16, 2011 • Case Study • 636 Words (3 Pages) • 2,189 Views
A Power Play for Howard
A Power Play for Howard
Costs and risks analysis associated with negotiating Juwan Howard's contract.
The Washington Bullets' General Manager Wes Unseld, and the Miami Heat's General Manager Pat Riley engaged in a critical bidding war for Juwan Howard's employment with the NBA. As the new general manager, Unseld, was required to respond quickly to persuade Howard that the Bullets were the team for him. Unseld was in a new position as General Manager, recently replacing John Nash who was forced to resign. Unseld began the negotiation in an integrative bargaining position to win Howard. As the negotiations continued, it began to resemble a win-lose or distributive bargaining process. Unseld also had to duplicate the legendary Pat Riley bidding for Howard's service.
From Howard's perspective the negotiation of the contract meant he wanted to earn his full market value for the next seven seasons. He knew these were critical playing years for him and he wanted to get the best value for his efforts. The risk involved for Howard was the danger of a lower salary, playing for a losing team, a fragile coach, or risk living in an undesirable city. In his plight for monetary gain, Howard risked his comfort of playing for his hometown team, which he had grown accustomed to and with which he had established a loyal fan base.
Both teams' general managers would benefit by offering Howard a seven-year contract, because during those years, Howard could reach his potential and could lead either team to a championship. Miami's offer was also a risk for Howard, since their offer violated the salary cap rules and was consider unenforceable according to the NBA; this would have made Howard a free agent again. Howard also risked an additional $40-50 million, because of the incompletion of negotiations with Miami. On the other hand, Miami risked a $5 million fine, a voided contract from Alonzo Mourning, suspension of Coach Riley for
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