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Evaluating the Benefits

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Submitted By kenhayes2
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Evaluating the benefits, costs, and risk associated with negotiating Juwan Howard’s free agent contract, Juwan Howard had many request to be comfortable with whatever organization that he chose to work for. Juwan Howard, due to his last two seasons with the Wizards, believed he had become a valuable NBA commodity, averaging 19.8 points, 8.3 rebounds, and 3.6 assists per game over the two seasons (Barry, Lewicki, & Saunders, 2007). With the stats recorded, Juwan Howard wanted his compensation to match his achievements and the ability to follow his dreams. Juwan Howard’s request, though demanding and deserving, were lavish in comparison to other contract at the time. He wanted a long term contract of $100 million over 7 years, luxury suites on away games, limo services paid for, extra tickets for games, and the possibility to purchase a new Ferrari and his dream home. Juwan Howard did not want to go to another team because of his love of the state of Washington, his loyalties to his coaches and fans and desire to stay where he started his career. Above all else though, he wanted to go where the money is. The General Manager for the Washington Wizards is Mr. Unseld. Mr. Unseld really wanted to keep Juwan Howard happy, keep him in the city that loved him, and to be able to provide a supporting cast of players to compliment Juwan Howard’s abilities. In doing so, he knew that with the salary cap, he could not accomplish paying Juwan Howard the amount of money he is requesting as well as build a team around him and stay under the salary cap. Unseld did realize the dedication, heart, and potential that Juwan Howard possessed. The risks associated with negotiations with Juwan Howard is the unknown, if the player will get hurt or not, the loss of potentially not able to build a supporting cast around him, the fans outrage with not doing everything possible to retain their favorite player, and possible penalties from the NBA. Pat Riley, the President and Coach of the Miami Heat, also wanted Juwan Howard, to play a supporting role along side of Alonzo Mourning. The problem with the deal is that Miami already had a high salary player in Mourning, which wanted the highest paid salary on the team, and Pat Riley was under constraints to hire the younger Juwan Howard. The problem that Pat Riley put himself into and is controversial still today is that he verbally promised Alonzo Mourning a $100 million contract at the same time as signing a $100 million plus bonuses contract with Juwan Howard. In doing so, he broke the NBA salary cap agreement and automatically voided the signed contract with Juwan Howard. Unlike Mr. Unseld, Pat Riley would do anything to get Juwan Howard for his stats, dedication, potential, heart, and his supporting role he would play on his team. Therefore, the NBA voided the contract with Juwan Howard, which gave the Washington Wizards the ability to pick Juwan Howard back up at the $100 million he requested in the first place, punished the Miami Heat by taking away a draft pick, and was thinking about fines to punish even further if the Miami Heat did not drop its arbitration suits.

References
Barry, B., Lewicki, R. J., & Saunders, D. M. (2007). Negotiation (5th ed.). New York, NY: McGrw-Hill/Irwin.

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