Case Study: a Power Play for Howard
Case Study
A Power Play for Howard
Student Name
University
SubjectCase Study: A Power Play for Howard
As a sophomore during the 1995-96 NBA season, Juwan Howard posted superstar-like numbers for the Washington Bullets. The fifth pick in the 1994 NBA Rookie Draft was immediately courted by many teams as he was about to be a free agent in the 1996-1997 season. Although publicly stating he wanted to stay with the Bullets, Howard and his agent,
David Falk, were not attracted to the team’s seven years $78 million offer. Howard felt that his market value was far more than that. Then Miami Heat offered a 7-year/$98M contract.
The Bullets pushed their offer to $89M, but stopped short of matching the Heat’s offer.
On July 15, 1996, Howard signed a $101 million contract with the Miami Heat. However, this 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 after signing a seven-year contract worth
$105 million. The Heat went to court to challenge the NBA’s ruling.
Assumptions
The NBA indicated that the Heat violated its salary cap and only used this as basis to void its contract with Howard. However, salary cap violations come with strict penalties - $5 million penalty to the team and a season long suspension for Heat Coach Pat Riley. The NBA maintained that the Heat already had an agreement with center Alonzo Mourning before signing Howard and, that the bonuses of two other players were not counted against the cap when they should have been.
Vantage Points
1. Impose the $5 million penalty against the Heat and season suspension for Coach Riley.
2. Give concessions to Miami for it to stay competitive in the league during the season.
3. Allow the courts to settle the matter.
A Power Play for Howard 1Diagnosis
Impose Sanctions against the Heat
For the NBA to pursue its allegations of salary cap violations against the Bullets it would have to seek imposition of
A Power Play for Howard
Student Name
University
SubjectCase Study: A Power Play for Howard
As a sophomore during the 1995-96 NBA season, Juwan Howard posted superstar-like numbers for the Washington Bullets. The fifth pick in the 1994 NBA Rookie Draft was immediately courted by many teams as he was about to be a free agent in the 1996-1997 season. Although publicly stating he wanted to stay with the Bullets, Howard and his agent,
David Falk, were not attracted to the team’s seven years $78 million offer. Howard felt that his market value was far more than that. Then Miami Heat offered a 7-year/$98M contract.
The Bullets pushed their offer to $89M, but stopped short of matching the Heat’s offer.
On July 15, 1996, Howard signed a $101 million contract with the Miami Heat. However, this 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 after signing a seven-year contract worth
$105 million. The Heat went to court to challenge the NBA’s ruling.
Assumptions
The NBA indicated that the Heat violated its salary cap and only used this as basis to void its contract with Howard. However, salary cap violations come with strict penalties - $5 million penalty to the team and a season long suspension for Heat Coach Pat Riley. The NBA maintained that the Heat already had an agreement with center Alonzo Mourning before signing Howard and, that the bonuses of two other players were not counted against the cap when they should have been.
Vantage Points
1. Impose the $5 million penalty against the Heat and season suspension for Coach Riley.
2. Give concessions to Miami for it to stay competitive in the league during the season.
3. Allow the courts to settle the matter.
A Power Play for Howard 1Diagnosis
Impose Sanctions against the Heat
For the NBA to pursue its allegations of salary cap violations against the Bullets it would have to seek imposition of
References: Brown, C. (1996). Howard: 2 Deals, 2 Teams, $200 Million. Retrieved October 26, 2007 from 26, 2007 from http://topics.nytimes.com/top/reference/timestopics/people/h/juwan_howard/ … Howard Attempting To Return to Bullets (1996). The New York Times Archives, Retrieved October 26, 2007 from October 26, 2007 from http://topics.nytimes.com/top/reference/timestopics/people/h/juwan_howard/ Where Will Howard Play Next Season? (1996). The New York Times Archives, Retrieved October 26, 2007 from