Negotiation: NBA Salary Cap

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Negotiation is a fundamental process used in resolving conflicts, making business deals, and in managing working relationships with others. Negotiations occur for two reasons: (1) to resolve a problem or dispute between parties, or (2) to create something new that neither party could do on its own. Negotiating is a critical, every day skill that is essential anytime it is necessary to create short-term or long-lasting agreements. For example: In 1996, Juwan Howard signed a contract worth over $100 million with the Miami Heat and nearly became the highest paid NBA player during the '96-'97 NBA season. However, his contract was voided by the NBA citing that the Heat exceeded its salary cap. On August 5, 1996 Howard returned to the folds of the Bullets and Miami Heat went court to challenge the NBA's ruling. The outcome of the case proved a “colossal windfall for the Bullets” (Brubaker and Asher, 2007, p. 45). In the following paper, we will briefly summarize the case study analysis of the “Power Play for Howard.” Additionally, the team will evaluate the benefits (tangible and intangible), costs, and risks associated with negotiating Juwan Howard’s free agent contract from the perspective of Juwan Howard and both teams’ general managers. A Power Play for Howard Summary The following case is a review of Juwan Howard, a star basketball player playing for the Washington Bullets. The case study details the ins and outs of the high stakes world of professional basketball and the deals and huge money that is the main focus of owners, agents, players, the players union, managers, and the NBA league every year during draft and free agency. The case begins by explaining how Juwan Howard came to the Washington Bullets on less than ... ... middle of paper ... ...iations the representatives must define what the real problem is and what each party genuinely wants from a negotiated agreement. Howard implemented value by comparing and contrasting the teams offers with respect to his personal value. Howard conducted integrative negotiation procedures to produce a “win-win” situation for all parties concerned, including himself. Works Cited Basketball, (2010). In Encyclopædia Britannica. Retrieved June 29, 2010, from Encyclopædia Britannica Online: http://www.britannica.com/EBchecked/topic/55245/basketball Brubaker B. and Asher M., (2007). A Power Play for Juwan Howard. Lewicki-Barry-Saunders: Negotiation: Readings, Exercises, and Cases, Fifth Edition. The McGraw-Hill Companies, 2007 Simbajon, C. (2009). A Power play for Juwan Howard. Retrieved from http://dept.lamar.edu/industrial/Underdown/Eng_Mana/Howard_Case_HW.htm

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