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 ...
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...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
As surprising as it may be to those who are not themselves fans of the National Basketball Association, Anglo-Americans are vastly outnumbered by other ethnicities. In fact, African-Americans hold a majority of positions, command higher average salaries, and receive more attention for their accomplishments in the media. Although there are a number of Anglo-Americans employed by the NBA, few ever manage to obtain equality in the field. For example, the position of team owner, frequently held by Anglo-Americans, carries with it a much lower salary and far less prestige than would be expected. Even though the owner is technically responsible in one way or another for almost every aspect of team performance, he often receives less compensation for his hard work than many African-Americans who hold such positions as center and point guard. Clearly, this skewed system of rewards is the result of long standing prejudices against Anglo-Americans.
Fisher, Roger, William Ury, and Bruce Patton. Getting to yes: negotiating agreement without giving in. 2nd ed. New York, N.Y.: Penguin Books, 1991. Print.
The service that the athlete requires of the agent is that the agent be loyal, trustworthy, and always looking out for the best interests of the athlete. Agents that can effectively communicate the athlete’s worth and successfully negotiate the best possible deal for the athlete, whether it is an employment or endorsement contract are ideal for an athlete. Successful promotion of the athlete’s career, assets both physical and intangible, and other opportunities the athlete can bring to the team/product is an essential part of whether an agent is successful or not. The price is the price negotiated in the contract. An athlete is looking for the best deal possible in order to provide for himself and his family. In order to retain clients an agent must always be able to get his client the best deal possible and create ot...
Lewicki, R., Saunders, D.M., Barry B., (2010) Negotiation: Readings, Exercises, and Cases. 6th Ed. McGraw-Hill Irwin. New York, NY
Others feel that if a person is able to earn that kind of money, why shouldn't they? Increases in athlete salaries will bring up the question on whether athletes are worth the money by researching the NBA?s new collective bargaining agreement (before and after the approval), by observing the current salaries of top athletes in their respective sports, and by concocting possible solutions. Shaquille O?Neal, formerly of the Orlando Magic, signed almost two years ago with the Los Angeles Lakers for an enormous $120 million over seven seasons.... Alonzo Mourning signed with the Miami Heat for a seven year deal worth about $112 million.... These fat contracts have brought out the question: Are pro athletes worth the millions they are paid? Basketball Hall of Famer David Thompson states, "Players have such a short time to make their money. If you look at others in the entertainment business, you?d think so. Look at Mike Tyson. He made $30 million for the six minutes and 50 seconds it took for him to knockout Frank Bruno" (Rhodes and Reibstein 44). Zachary M. Jones, an attorney at Howard University in Washington D.C., utters, "Superstar athletes are few in number, so the demand is high, which raises the price for their services significantly" (Saporito 61).
Negotiations styles are scholastically recognized as being broken down into two general categories and those are distributive bargaining styles and integrative negotiation styles. Distributive bargaining styles of negotiation are understood to be a competitive type of negotiation. “Distributive bargaining, also known as positional bargaining, negotiating zero-sum, competitive negotiation, or win-lose negotiation, is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value” (Business Blog Reviews, 2011). This type of negotiation skill or style approach might be best represented in professional areas such as the stock market where there is a fixed goal in mind or even in a garage sale negotiation where the owner would have a specific value of which he/she would not go below. In contrast, an integrative negotiation approach/style is that of cooperative bargaining, or win-win types ...
I chose to write a sports journalism piece on the most controversial decision of not only the 2016 NBA offseason, but perhaps all NBA offseasons in history: Kevin Durant to the Golden State Warriors. My target audience for the article is basketball fans worldwide; as this decision had the whole world talking and not only America.
Early entry into the NBA has become one of the hottest topics in basketball today. Every year, more and more high school and college basketball players are foregoing their remaining years of college or all of college in favor of entering the NBA draft. It all started twenty-seven years ago, in the year 1969, when Spencer Haywood from the University of Detroit was the first underclassmen to leave college early in favor of the NBA. He signed with Denver of the ABA, for 50,000 dollars, after his sophomore season, in hopes of becoming a professional superstar. However, this wasn’t Haywood’s main intention. Instead, Haywood’s family was miserably poor, with his mother supporting ten children on a salary of ten dollars per week. Haywood entered the NBA because he was the only one who could help his family while they were at rock bottom. Haywood’s decision was out of love for his family and was a moral and ethical decision. Yet, almost all the underclassmen entering the NBA draft are entering for what society classifies as morally wrong reasons.
Our story starts with a review of the lessons the current body of literature teaches us about the economics of professional basketball.
Lewicki, R. J., Barry, B., & Saunders, D. M. (2007). Essentials of Negotiation. New York: McGraw-Hill/ Irwin.
Davis 6 Works Cited Page Greene, Bob. Hang Time. New York: Doubleday Inc., Nov. 1992 Halberstam, David. Playing for Keeps. New York: Random House, 1999. www. BioLife.com www. GreatsoftheGame.com www. NBA.com
In recent years, the NBA and “trouble” seem to have become synonymous. In the past year alone, some of the biggest names in basketball have had run-ins with the law. To try to avoid this trouble the National Basketball Association started the NBA rookie transition program ("The problem," 2012). This training program serves to provide knowledge of what players can expect while playing in the NBA and how to balance the pressures and demands that come with their chosen career ("The problem," 2012). The program is cited as only having “modest success” and Harry Edwards, a noted sports psychologist and advisor in Oakland, California said, “I think they ought to send players to those courses every year, every season. It should be like renewing your driver’s license and driving test” ("The problem," 2012). No one disagrees that many professional athletes have problems that are not being resolved, and that reflect negatively on the whole league. NBA players are referred to as “high maintenance” by sports agents and the media. “Basketball players start getting pampered very young” says sports agent, Peter Schaffer. “Twelve and 13-year-olds are being brought to training camps, they get free shoes, they’re deemed to be special at an early age” ("The problem," 2012). The $475,000 rookie minimum is more than 10 times the starting salary for a college graduate and rookies are typically in their early 20’s ("The problem," 2012). Over the last decade, high salaries have had a variety of negative effects on NBA players including, the way the law is viewed, bankruptcy, family values, and production. Sometimes, these things ruin their career, or more accurately the way they earn a living.
This is the first stage of negotiation when you acquire all the documentation, facts and information necessary to bring others into an agreement. During preparation, it helps to look for win-win agreements that focus on shared interest. This opens the door to finding solutions and options that favour all parties.
Negotiation approaches are generally described as either distributive or integrative. At the heart of each strategy is a measurement of conflict between each party’s desired outcomes. Consider the following situation. Chris, an entrepreneur, is starting a new business that will occupy most of his free time for the near future. Living in a fancy new development, Chris is concerned that his new business will prevent him from taking care of his lawn, which has strict requirements under neighborhood rules. Not wanted to upset his neighbors, Chris decides to hire Matt to cut his grass.
Negotiation has been used as a vital communication tool not only in business but also in social intercourse. It helps people make common agreement and avoid conflict. So we need to use the tactics which we learned from this course and books to do more practice, only in this way we can gain advantages in negotiation.