Case Study Analysis Part A (Power Play For Howard)

1546 words - 6 pages

When Juwan Howard entered the National Basketball Association (NBA) in 1994, he might have been considered the George Harrison of basketball. He was hard working and, for the most part, conducted himself with class and dignity on and off the court. As a sophomore during the 1995-96 NBA season, Juwan Howard posted superstar-like numbers for the Washington Bullets. The fifth pick in the 1994 NBA Rookie Draft was immediately courted by many teams as he was about to be a free agent in the 1996-1997 season. Howard nearly became the highest paid NBA player during the '96-'97 season but had his contract voided by the NBA. On August 5, 1996 Howard returned to the folds of the Bullets after signing a seven-year contract worth $105 million. The Heat went to court to challenge the NBA's ruling.BenefitsIn the case of negotiating Juwan Howard's free agent contract it is beneficial that he is young. Being only twenty three years old gives him an edge in the negotiations because he is just beginning his career and has yet to reach his prime in age and skill in the NBA. He is a top producer on the bullets team and is loved in his city for his work ethic on and off the basketball court; therefore, re-negotiating his contract with the bullets is in Juwan's best interest because he has built a rapport with the team. Negotiating with the bullets means at least another guaranteed seven years in Washington for Juwan. He also stands to substantially gain from the Miami Heat being that they are offering him twenty two million dollars more than the bullets, plus incentives; which compensates for him reaching his prime within those seven years. Juwan also gets the chance to play along side Alonso Mourning who was being acquired by the Miami Heat around the same time of Juwan's negotiations. The general managers of the bullets and heat will both benefit by negotiating a seven year contract because they know Juwan will only get better in skill and leadership, continuing to produce good statistics on the basketball court, and possibly helping to lead his team to a championship. In Pat Riley's case he already has Alonso Mourning, and adding Juwan Howard to the Miami heat made for a powerful duo on the basketball court; the kind of duo that produces championships. If Wes Unseld is able to get Juwan to accept his $78.4 million offer he will be able to ensure Juwan's commitment to the bullets and retain him for an amount under his market value.CostThe cost benefits for Juwan Howard were a win-win situation. He was one of the most sought-after free agents at the time, with a good demeanor on and off the court. His consistent contributions on the court for the past two years raised Juwan's market value. When his current team offered him a seven-year $78.4 million dollar contract, his agents quickly turned it down, because they knew that there were other teams out there that would pay what Juwan wanted. Soon after, they got a bid from Pat Riley representing the Miami Heat for $84...

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