Juwan Howard Case Study

In: Business and Management

Submitted By almostdone2013
Words 1212
Pages 5
Case Study Analysis Part A: Case 3, "Power Play for Howard"
MGT 445
4/25/12

Power Play for Howard
In this assignment Team C will briefly summarize the case of Juwan Howard. Next, Team C will evaluate the benefits (tangible and intangible), risks, and costs associated with negotiating Juwan Howard’s free agent contract. Afterwards, we will provide a brief conclusion.
The Overview
As kids we have dreams and aspirations of growing up making it big in our profession of choice while making lots of money. According to most children, their dreams range from a number of professions including; Doctors, Lawyers, Teachers, Police, Firefighters or even becoming a professional athlete such as Michael Jordan and Juwan Howard. In the 1990’s, most kids wanted to be like “Mike”. Michael Jordan’s name was a household name, and a major brand for marketing worldwide for Nike. Most NBA players’ career salaries would not even come close to Michael Jordan’s endorsement income from the late 80’s through the 90’s. In our opinion, Michael Jordan was clearly underpaid when he played basketball. It wasn’t until later in his career that he signed the biggest NBA contract of all time paying $30 million a year. Jordan set the bar for young superstar NBA players such as Juwan Howard to sign multi-million dollar contracts in the late 90’s.
Juwan Howard’s story was a little different from Michael’s. He signed two contracts over the course of his career totaling $205 million. This type of money is unlikely for a second year pro center in the NBA unless you are Wilt Chamberlin, who scores a hundred points a game on a consistent bases. Juwan’s situation was between two ball clubs which were The Washington Bullets and Miami Heat which were both in heated negotiations to get him on their team. His loyalty was with The Washington Bullets. However, in the beginning the money was with the…...

Similar Documents

Juwan Howard Case Study

...Contract Negotiations Case Study From peace negotiations between countries to professional sports contract negotiations, these meetings of parties occur daily in every society and result in both positive and negative outcomes. Negotiations occur on both high and low levels and are necessary to reach agreements for limited resources, work together to create something otherwise impossible, or resolve problems between parties (Lewicki, Saunders, & Barry, 2006). In the National Basketball Association, the stakes are high during contract negotiations and can make or break a team resulting in major changes to the relationship between the organization and a professional athlete. Negotiations for Juwan Howard Agreements for limited resources and rekindling a relationship are the roots of the Juwan Howard contract negotiation with NBA executives becoming one of the “most intricate and controversial episodes in recent sports history” (Lewicki, Saunders, & Barry, p. 616, 2006). This historical event began with the moment Howard was drafted to the Washington Bullets by the NBA in 1994. As a respectable individual on and off court, Juwan Howard was entering a world of politics, money, and the legalities of contract negotiations and collective bargaining. Howard started off in the professional league with below market compensation for the first several seasons with the Bullets moving on to become a free agent for a short time. This new status brought interests from......

Words: 1656 - Pages: 7

Case Study Analysis

...Case Study Analysis Part A (“Power Play for Howard”) James Carruthers, Matthew Chouinard, Amber Hawes, Mike Knowlton, and Shellie Mapes MGT/445 March 21, 2011 Dr. Michael Charter Case Study Analysis Part A (“A Power Play For Howard”) Every year, hundreds of millions of U.S. dollars are verbally tossed back and forth during negotiation talks between teams and players. The contract of a player expires and the player may be traded for another player, or essentially bought by another team. The value of a player greatly depends on (a) his playing power and (b) his fan base. In the case of Juwan Howard, a player for the Washington Bullets/Wizards, both his playing power and fan base made him a wanted player by many teams when his contract with Washington expired in 1996. Negotiations became heated, particularly between Miami and Washington, until a miscalculation in the negotiation terms resulted in Howard signing with Washington for another term. Case Summary Juwan Howard was a professional basketball player in the National Basketball Association (NBA) and was looking to renegotiate his contract with his then-current team, the Washington Bullets. This would give Washington the first chance to make an offer. He had the option to renegotiate after 2 years and decided to do so. Washington's new general manager, Wes Unseld, made an original offer of 78.4 million dollars. This was not satisfactory as the open market had determined his worth much......

Words: 1921 - Pages: 8

Howard Case Styudy

...oward case stu“What do we do with Howard?” Synopsis: Tad Pierson had recently been appointed as a project engineer. As project engineer for one of Agrigreen’s plants, he is responsible for the operation of the plant surveying group. For some time now Tad had been aware of some performance, safety, and conflicts with personnel within the group. These issues appear to be escalating in frequency and are causing Tad concern regarding the safety of the employees, the production schedules, and possible actions that he might need to take. Agrigreen, Inc. is a company that manufactures a verity of agricultural fertilizer. With plants located in the western United States and Canada, Agrigreen employs certified surveyors to ensure quality and safety of each project. Eighteen years ago, Agrigreen’s survey crew was composed of part-time drafting personnel or project engineers. Howard Lineberry, a lead surveyor had been employed with Agrigreen for eighteen years. Over his tenure he had been supervised by five different managers, and had three surveyor’s helpers. Howard’s work over the years has caused multiple safety and production issues. He has also had conflicts with the engineering staff, his managers, and almost everyone he worked with. Mel Cutler, a surveyor’s helper, after being employed by the company for only a few years was assigned to assist Howard. Five years into this assignment, Mel began to notice problems due to Howard’s note keeping method. These problems...

Words: 2493 - Pages: 10

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Howard Case Study Analysis

...he is to control the number of employees from turning over to his competitors. The first course of action that Adam had to do is to understand and judge is, which are the employee turnovers is unfavorable for the company, or which are the ones can be avoidable? And what are the employee turnovers that are favorable to the company, or which of these employee turnovers aren’t preventable? Then consider from the facts to reduce the predictable and avoidable employment turnovers. Normally, favorable employment turnovers are these level C employees that have low efficiency; and these unfavorable turnover for the company are the core employees, which losing one out of these core employee can causes the company a tremendous loss. Which in Adam’s case, he’s losing his core employees that can cause him to have tremendous loss that are unfavorable to the hotel. Secondly, Adam is to do deep adjustments from top-down management layers in order to provide better management on its employees. The adjustment should including the change of frequency for managers on meeting and participate more with the key employees, show understanding toward employees’ issue and concern and assure of total organizational backing to succeed in their jobs right from the provision of appropriate tools and resources to top-down managerial support. For example, as employees progressing with their projects, it is very important to have managers or supervisors to provide professional suggestions and support to......

Words: 466 - Pages: 2

Case Study

...Corporate integrity is an issue here.” Heavy stuff. We wonder if the BIR is being fair to the Tanco Group. It seems that Tanco is suffering from a problem that is exclusively between Philam Life and BIR. Is it not possible for BIR to let Tanco off the hook? When Alan Howard bought Monet’s Water Lilies artwork for US $43 million from Imelda Marcos’s former assistant Ms Bautista, the fact that Bautista did not pay the appropriate taxes to the State and City of New York did not affect Howard’s ownership of the painting. Surely there is some parallel between Alan Howard and the Tanco Group. I mention these cases because the wheels of commerce cannot operate smoothly if an innocent third party is adversely affected by tax issues between tax authorities and the seller. If commercial transactions are fraught with complex, time-consuming problems, then the nation’s economy is also adversely impacted. We believe that BIR should focus sole attention, like its counterparts in other jurisdictions, on the party with whom it has a problem. Innocent third parties should not be impacted. Tanco Group has impugned Philam Life’s good faith. Philam Life has defended itself. On Wednesday I shall provide a case study which addresses Philam Life’s conduct....

Words: 417 - Pages: 2

Case Study

...Case Study #1: Starbucks Starbucks is the largest coffeehouse company in the world. According to starbucks.com: “There are approximately 19,767 stores in over 60 countries in the world.” Starbucks has expanded its company around the world like no other coffeehouse company ever. This is the result of such an incredibly successful business. Production is going so well for Starbucks because the revenues are being higher than expectations. Starbucks started a new strategic plan called “the Blueprint for profitable work,” in which the use multi channel sales distribution strategies to improve their performance and reduce company’s expenses. Moreover, Starbucks still center most of their attention to market the quality of its principle product: the coffee. Furthermore, this company makes such a big effort on modernize and improve their product every year that consumers keep growing daily. And finally due to their expansion not only in the nation but also all around the world this company is able to increase their net sales, net income, and returns in dividends. Starbuck’s global international expansion was initiated in 1996 when they open their first franchise in Tokyo, Japan. This global expansion has brought Starbucks some positive advantages, evidenced in the increased of the company’s annual return. The China and Asia Pacific market are so important to Starbucks not only because they have one of the best economies in the world but also because Starbucks owns almost 3,300...

Words: 1062 - Pages: 5

Power Play for Howard

...Power Play for Howard Lisa Ramsey, Julie Logan, Johanna Gregory MGT 445 October 6, 2011 Elie Azar Power Play for Howard Introduction The case study “Power Play for Howard” provides the negotiation process that occurred between super star basketball player Juwan Howard and both NBA teams, the Miami Heat and the Washington Bullets. The case study also summaries the tangible and intangible benefits, risks, and costs associated with the negotiations that occurred while Howard as a free agent. I. Issues in the negotiation A. Multiple offers 1. NBA Teams: Washington Bullets and the Miami Heat 2. NBA spending Cap 3. Miami Heat bids and offers 4. Washington Bullets bids and offers B. Team Loyalty 1. Juwan’s loyalty and commitment to the Bullets II. Bargaining matrix and issues. A. The bargaining Matrix include 3 parties; 1. Juwan Howard 2. The Washington Bullets 3. The Miami Heat B. Issues to cover: 1. Win/win matrix, as well as win/lose. Juwan Howard and one team can both win, if they win the signing process, making the other team the loser. 2. The paramount issue is 100 million dollars, which is only connected to the other issue of Howard remaining in his home state and team, if the monetary offer of both teams was the same. 3. The issue of home state and team would be the deal winner for the Washington Bullets. III. Interests A. Major interest 1. To obtain the most about of money for Juwan Howard. 2. To have......

Words: 711 - Pages: 3

Mgt 660 Clc Howard Schultz and Starbucks Coffee Co. Case Study

...MGT 660 CLC Howard Schultz and Starbucks Coffee Co. Case Study Click Link Below To Buy: http://hwaid.com/shop/mgt-660-full-course/ Details: This is a CLC assignment. Your instructor will designate groups. In your groups, read the "Howard Schultz and Starbucks Coffee Company" case study in the textbook. Create a PowerPoint presentation of 10-15 slides (with speaker notes, title slide and reference slide) that addresses the following questions: 1. In the early 1980s, how did Howard Schultz view the possibilities for the specialty coffee market? Why did Schultz think he could successfully import the Italian coffee bar concept to the United States? 2. Was Schultz's strategy a blue ocean strategy? A red ocean strategy? Elaborate on your decision. 3. What were the critical drivers of Starbucks' success? 4. What is the source of Starbucks' competitive advantage? Is it sustainable? What should the company do (or not do) next to enhance/maintain its position in the market at the time the case was written? While APA format is not required for the body of this assignment, solid academic writing is expected and in-text citations and references should be presented using APA documentation guidelines, which can be found in the APA Style Guide, located in the Student Success Center. This assignment uses a grading rubric. Instructors will be using the rubric to grade the assignment; therefore, students should review the rubric prior to beginning the assignment to become......

Words: 290 - Pages: 2

Case Study Analysis Part a: Case 3, Power Play for Howard

...Case Study Analysis Part A: Case 3, Power Play for Howard Las negociaciones pueden ser muy complejas e implican varios niveles de costos y riesgos. Los beneficios tangibles e intangibles deben ser evaluados antes de tomar una decisión final. La negociación para el contrato de agente libre Juwan Howard con los Miami Heat y los Washington Bullets es un buen ejemplo de que tan complejas pueden ser las negociaciones. Tanto la negociación distributiva y la negociación integrativa se utilizaron para llevar las negociaciones hasta el cierre. En el siguiente ensayo se muestran los beneficios tangibles e intangibles, los costos y los riesgos que estaban asociados en el contrato de agente libre Juwan Howard serán evaluados desde la perspectiva de Juwan Howard y más allá de los gerentes de ambos equipos en general. En resumen del caso, Juwan Howard, un jugador respetado en la National Basketball Asociation (NBA), es un agente libre y se encuentra en una situación que requiere de varias negociaciones antes de firmar un nuevo contrato, ya sea con los Miami Heat o los Washington Bullets. Cuando llega la conmoción comienza una guerra de 30 días la cual incluye un contrato inválido. En su segundo año en la temporada de 1995-1996 de la NBA, Juwan Howard fue reconocido como súper estrella en los Washington Bullets. La quinta selección en el Draft de la NBA Rookie 1994 fue cortejado por muchos equipos de inmediato cuando estaba a punto de ser un agente libre en la temporada del......

Words: 1970 - Pages: 8

Case Study Analysis Part a: Power Play for Howard

...Case Study Analysis Part A: “Power Play for Howard” Learning Team B Maria del C. Perez MGT/445 February 20, 2012 Dr. Anne Hallcom Case Study Analysis Part A: “Power Play for Howard” In the case study of “Power Play for Howard,” Juwan Howard, a free agent basketball player is looking to begin negotiations to obtain at least a $100 million dollar contract for his services. As a Washington Bullets team current player, his manager extends an invitation to this team first. He receives an offer from their organization; it is far below what he is looking to obtain. He decides to look elsewhere. Miami Heat offers him a deal that was too good to be true. They offered $100.8 million, seven-year contract with nice incentives; Juwan Howard agrees to their terms and signs their contract. Prematurely, there is excitement by the new agreement that he thinks is binding (Asher & Brubaker, 2007). The Bullets’ General Manager, Wes Unseld would soon hear back that the contract was invalidated by the basketball league in which they were governed by. The forward, Howard would continue with the Washington Bullets although arbitration takes place. In the end, the decision is made in favor of the Washington Bullets. In this paper, Learning Team B will take the reader through the tangible and intangible benefits, costs, and risks that took place for Juwan Howard, the Miami Heat, and the Washington Bullets- who would later to be known as the Washington......

Words: 1743 - Pages: 7

Case Study Analysis Part a: Case 3, “Power Play for Howard”

...Play for Howard Organizational Negotiations – MGT/445 Power Play for Howard In the National Basketball Association (NBA), players and teams negotiate multi-million dollar contracts every year. The risks, costs, and benefits of each potential decision affect the outcome of the negotiations. In the negotiation for Juwan Howard prior to the 2002-2003 season, the Miami Heat and the Washington Bullets attempted to secure a contract with the basketball star. Summarizing the Juwan Howard negotiation case, followed by an analysis of the benefits, costs, and risks for the player and the teams highlights the advantages and challenges faced in a high-profile negotiation. Case Summary This case describes the negotiation process of Juwan Howard, free agent forward of the Washington Bullets, by his agent David Faulk. Faulk’s objective was to solicit a $100 million contract offer for his star player. Wes Unseld, manager of the Washington Bullets, offered a seven-year, $78.4 million contract. Faulk refused Unseld’s offer. In an attempt to gain Howard for themselves, Miami Heat manager Pat Riley offered $100.8 million, luxury hotel suites, and limousine service. The Heat prevailed, and Howard signed. However, a dispute arose between the Miami Heat and the National Basketball Association (NBA). NBA officials concluded that the Heat had exceeded the salary cap set by the NBA. Because of this dispute, the Washington Bullets obtained another chance to bid for Juwan Howard. The......

Words: 1199 - Pages: 5

Part B: Case Study Analysis

...Part B: Case Study Analysis From Point of View of Pat Riley – General Manager of Miami Heat A. Introduction – Negotiating is trying to convince the other side to give you what you want. The key to success is knowing how you are going to get what you want (Egan, 2008). Included in this outline will be the negotiation steps from the view point of Miami Heat General Manager, Pat Riley and his clash between Washington Bullets Manager, NBA Star Juwan Howard, and Howard’s agent, David Falk. B. Issues a. Signing the best players in the league for the Miami Heat b. Having enough money in the salary cap to buy out player’s contracts i. Alonzo Mourning ii. Juwan Howard c. Abiding by NBA and CBA rules and regulations d. Verbal promises/contracts C. The “Bargaining Mix”? a. Which issues do we have to cover? i. Salary Cap ii. Player’s contracts 1. Staying within budget 2. Giving player’s what they want iii. Rules and Regulations b. Which issues are connected to other issues? i. Player’s contract/Salary cap ii. Rules and regulations/Salary cap D. Interests a. Getting the best players for the Miami Heat b. Alonzo Mourning (rated #3 as most desirable by the Miami Heat) c. Juwan Howard (rated #4 most desirable by Miami Heat) E. Limits a. Walk away i. What is the maximum the Heat is willing to offer to get the players wanted? 1. Teams payrolls to be capped at $24.3 million ii. Howard 1. Limit ended at $95.2 million plus 6 million in bonuses and perks a. Total...

Words: 591 - Pages: 3

Case Study Analysis Part a: “Power Play for Howard”

...Case Study Analysis Part A Team C August 14, 2012 MGT/445 Steve Knabe Case Study Analysis Part A Benefits Costs Risks Party Tangible Intangible Tangible Intangible Tangible Intangible Juwan Howard Heat: $95.2 mil contract including $6 mil in bonuses, hotel suites, limo services, $5000 toward charitable cause Bullets: 1st offer - $84 mil contract 2nd offer - $100.8 mil contract plus $4.2 mil to cover tax expenses Heat: Possibility of winning a $100+ mil contract, living in a lavish home with elevators, and receiving “special treatment” Possibility of expanding his fan base Possibility of expanding his brand Bullets: Ability to remain in Washington, which is his home If Howard accepts the initial offerings from Unseld, his salary would be significantly lower than if he were to accept the Heat’s proposal Howard would forfeit the special treatment privileges by accepting the Bullets’ offer Accepting the Heat’s proposal would result in Howard leaving the place he calls home Howard would leave his fan base in Washington $50 mil pay cut if he chose to remain with the Heat during arbitration Accepting the initial proposal from Unseld would have resulted in a below-average salary Leaving the Bullets could result in a smaller fan base, which would affect revenues and marketing Possibility of no contract with the Bullets or the Heat. No contract, no income Leaving Washington may negatively affect his fan......

Words: 701 - Pages: 3

Power Play for Howard

...A Power to Play for Howard is a case study about a 23 year old basketball player facing a difficult decision of negotiating a contract of a lifetime between the Washington Bullets and Miami Heat basketball teams. On July 11 Howard arrives at the headquarters of agent David Falk in Chevy Chase Pavilion to solicit a $100 million contract offers from National Basketball Association team executives. Initially Howards’ aspiration was to continue as a member with the Washington Bullets; except he needed to believe he was a commodity to the franchise and a higher paying contract offer would determine how loyal the franchise is to him. The fans of the Washington Bullets made Howard feel like he was the best player the team has ever had, except the executives were not willing to offer him a contract worth his market value. Howard learned he had to leave a team and city that he has learned to call home and move on to a new beginning in a city that he was not familiar with. The offer from Riley the team executive of Miami Heat welcomed Howard and he also felt appreciated. Howard’s target was to solicit a $100 million contract from team executives. The first offer of $78.4 million contract from the Unseld the general manager of the Washington Bullets was Howard’s resistant point. The offer from Unseld was one that Howard was not willing to negotiate. He initially dismissed the contract. One should consider Howard’s target goal of $100 million, although neither of the team......

Words: 865 - Pages: 4