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Negotiating a Free Agent's Contract

Briefly summarize the case study "A Power Play for Howard, in Many Acts", October 27, 1996, by Bill Brubaker and Mark Asher. Evaluate the benefits (tangible and intangible), costs, and risks associated with negotiation Juwan Howard's free agent contract from the perspective of Juwan Howard and both teams and both general managers.

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Negotiation problem

The case describes the negotiation process of Juwan Howard, the star free agent forward of the Washington Bullets by his agent David Falk. The objective of the negotiation on July 11 was to solicit $100 million contract offers but the Unseld representing the Washington Bullets offered a contract for seven years for $78.4 million. This deal was refused and ultimately Miami Heat's offer of $100.8 million with luxury hotel suites and limousine service for Howard was signed. However, there was a dispute between the Miami Heat and the NBA and a decision was taken by the NBA officials that Heat had bid over the cap set by NBA. Because of this dispute, Washington Bullets got another chance to bid for Juwan Howard, this time Washington Bullets matched the bid of Miami Heat and offered him $100.8 million plus $4.2 million to cover state income tax. ...

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