Negotiating Strategies

Negotiation Case Study Analysis Part B:

A Power Play for Howard

Ben Wihebrink, Rich Graham, Regina Cobbs-Johnson, and Jackie Wright

MGT/445

May 23, 2011

Valarie Patterson

Negotiation Case Study Analysis Part B:

A Power Play for Howard

Negotiation Planning Guide Outline

1. What are the issues in the upcoming negotiation?

* Price or Rate

* Player Value

* Club Value

* Contract Term

* Championship Potential

2. Based on a review of ALL the issues, what is the “bargaining mix”? (Which issues do we have to cover? Which issues are connected to other issues?)

* Salary Cap (connected to Mourning’s Agreement)

* Contract Salary (connected to salary cap)

* Bonuses (connected to salary cap)

* Perks (hotels and limos)

3. What are my interests?

* 4th ranked player

* Building a Champion Team

* Fan and club hero in Miami

4. What are my limits—what is my walk away? What is my alternative?

* (Identified later by frustration) - $100.8 million (including bonus), $5000 charity, hotel suites, and limos.

* Alternative would be let Howard sign elsewhere.

5. Defining targets and openings—where will I start, what is my goal?

* $84 million open bid

* Goal is get Howard at Fair Market Value and stay under salary cap.

6. Who are my constituents and what do they want me to do?

* Heat Owners – win championships and get value for money

* Fans – gain star players to win championships

* NBA – conform with CBA rules and regs

* Teammates – gain mature, talented players to win championships

7. Who are the opposing negotiators and what do they want?

* Washington Bullets – want to retain Howard

* Bullets do not have resources to match Miami’s bid under salary cap

* Falk represents Howard, wants highest price to increase commission

8. What overall strategy do I want to select?

* Integrative negotiating strategy

* Show teammate caliber and championship potential

*...