•Briefly summarized the case. Juwan Howard, 23- year-old, negotiation case dealt with a basketball player bargaining between two teams (Washington Bullets and Miami Heat) struggle of team allegiances and negotiation of contract. Howard was drafted in 1994 by the Washington Bullets, a junior from University of Michigan with an 11-year salary for $37. 5 million with an option of becoming a free agent after two years. He signed but thought the contract amount was less than what he was valued. Juwan loved playing in Washington D.
C; he established himself and valuable in the National Basketball Association (NBA) commodity becoming a team favorite by all fans, and active in the community. The summer of July 11, 1996, Juwan Howard became the club’s all-star free agent represented by David Falk owner of Falk Associates Management Enterprises (FAME) arrived at his office to bargain for $100 million contract to Washington Bullet offer from the National Basketball Association (NBA) team executives. Washington Bullets General Manager, Wes Unseld sat down and made an offer of seven-year for $78. million dollar, in which would have amounted to $136,000 per game from 2002 to 2003. Howard became tearful and very disappointed remembered the team managers promised they would do whatever they could to keep him on the team. Pat Riley coach of the Miami Heat offered Howard $91 million and $3. 5 million in bonuses. The Bullets countered offered Howard $84 million. Miami Heat executives and Pat Riley after hearing about the amount Washington offered Howard became interested offering a seven-year guaranteed $100. million, which was the biggest in the team history with perks of luxury hotels and limousine service. The Bullets then offered Howard $94. 5 million, Falk rejected the offer and the next day the Bullets canceled Howard’s existing contract saying they would part ways and look at other free agents. After 30 days of back and forth of negotiations, Howard decided to sign with Miami and in route to Miami shopping for new house and sign the deal, in the airport terminal approached by an agent informed him that the contract became invalided by the league because of threats, legal maneuvers, and changing alliances.
Pat Riley earlier had negotiated privately a contract with Alonzo Mourning of the Miami Heat and would make him the highest rank player on the team. Unfortunately, Riley did not have permission to negotiate deals with players without informing the NBA according to Collective Bargaining Agreement (CBA). The following year after negotiation the Washington Bullet became the Wizards. Riley and Miami Heat owners disputed the ruling from CBA and threatened to pursue arbitration would cause conflict of interest.
The NBA Deputy Commissioner, Russ Granik informed Arison owner of the Miami Heat by phone agreeing with CBA they would not regain Howard in arbitration. The Heat tried to obtain a temporary injunction stopping Howard from signing a contract back with the Washington Bullets. The NBA and Miami agreed to drop all legal proceedings in which, the Heat abandon the injunction and the league drop the pursued alleged undisclosed Mourning agreement from Pat Riley, and they signed Brown and Hardaway to new contracts by removing whether their bonuses in which likely or not, and Mourning signed a seven-year, $105 million contract.
The league had the entire issue wired, which forced Miami to settle and presented the Heat with a plea bargain, if they went to arbitrator, they will go to jail for 100 years and if not they would be free. The league union agreed and restored the Bullets Bird rights; if a player signs a second contract because the first contract was invalid, then the second contract becomes valid, and allow Murray, and Williams remain with the Bullets.
On August 10, Juwan Howard contract with the Bullets was approved for seven-years worth $100. 8 million plus $4. 2 million cover Maryland taxes. Juwan Howard seven-years, $105 million Bullets contract took only 30 minutes to negotiate. Unseld refused to match Riley offer of hotel suites and limos because he wanted all players to ride the team bus together and stay in a regular room. Howard became the first basketball player in history to sign a $110 million and $105 million contract, becoming the $205 million dollar man.
