Business Negotiation
Fall 2012-2013 Section 101
Case study(3) final project paper
Name:
Suliman Al-Sadaan 200700260
Mustafa G. Al Nemer
Hassan mira 200800524
200600149
Business Negotiation: Case 3
Negotiation is a method of seeking mutual benefits. Basically it is an act to produce a Win-Win
situation between both the parties. It intends to reach at common understanding to resolve the
point of differences between two parties. The objective behind a negotiation is to build
individual or collective or organizational advantage. It is basically a journey from ‘To get’
attitude to ‘Yes’ attitude towards other party.
Negotiation occurs from time to time out of conflicts and disagreements which tend to arise from
differing needs and beliefs of people brought together. It not only depends on monetary factors
but also on a lot of non profitable, emotional factors which in general negotiators overlook in
their discussion. At times deals can be turned in your direction only by identifying such
emotional and non monetary factors. This factors could be respect, acceptance, reorganization,
willingness to work in a better environment and good experience co workers as in this case.
Negotiation structure:
In order to come down to an accommodating and a winning situation at the same time, there
should a proper structure that has to be followed by both the parties which is represented as
follows:
Preparation
Discussion
Clarity of goals
Agreement
Implementation
The case can be broken down to three part; the ones who Negated, the ones who violated and the
ones who applied it.

The ones who negated:
Juwan Howard, Miami Heat’s officials, NBA, FAME members and Washington Bullets
officials

The ones who violated:
Miami Heat, Riley

The ones who applied:
The NBA, CBA and other association and legal bodies
The issue became one of the most intricate and controversial issues in sports history because it
had loop holes in its structure and was not handled sensitively neither communicated effectively.
In terms of preparation, none of the negotiators were well prepared and clear about what they
wanted to achieve and how are they going to achieve it. In case of Juwan howard, who was a
very good, hard working, performing, dedicated player was very much committed to his game,
basketball. But he was somewhere stuck between his emotional and monetary needs and wants.
He always wanted to be a part of Washington Bullet and wanted to stay in Washington itself, but
was also tempted and confused when an offer of $100 million dollar was made to him with all
side benefits and luxuries. Although he had shown his commitment towards the Washington
Bullets team 2 years earlier, but still he felt cheated when the offer was made to his this year. He
felt that the team owners are not respecting him for his dedication, achievements, performance
and is underestimating him by paying less than his market value. This somehow was the major
component that hurt him and pushed him towards Miami Heat.
Whereas Washington Bullet and its officials specially Mr. Flake, analyzed the issue wrongly
and started negotiating with Howard directly on monetary grounds and add-on benefits. They
missed out on the other major emotional and social aspects to his issue. On one hand they were
doing rally stating that they would do anything to keep Juwan to Washington bullet and at the
same time were negotiating hardly with Juwan on contract amount and norms, even not leaving
any room for discussion from Juwan’s side. If we have to describe this situation in terms of
negotiation principle then the matter was Puffered and mis interpreted by Washington Bullet and
Flake.
And Miami Heat although was one of the best in terms of preparation and had clear goals and
strategies to get Juwan Howard on board, still missed him because of nondisclosures and
deception while presenting the agreement to Juwan. Rilary was stuck between his principles and
Juwan’s luxurious needs in contract.
Coming to stage two of structure which is discussion, all three parties and the legal bodies were
having distributive negotiations from beginning. This made the issue of player bidding so high
and complicated later by media and others. The negotiators were competing instead of
collaborating with each other. All parties were enjoying their powers and were negotiating on
their basic. The committee members thought that they are superior whereas the players thought
that they are the real stars who build this team. This lumping of difference in opinion caused this
issue to become more exaggerating. Whenever any two parties were on table for the deal, no one
tried discussing each other’s requirements and wants before coming to action.
When it comes to clarity of Goals, Juwan had his loyalty with Washington Bullet but still was
getting attracted towards monetary benefits and some own personal desires. Washington Bullet
on the other hand was unsure initially in terms of keeping Juwan in team which they later on
pictured clearly. Once they indentified the loss they will face if they lose a shining star like
Juwan, only then they actually went into an accommodating mode of negotiation. This should
have being the approach from start.
The fourth stage of agreement had its own faces to each party. Agreement is a pact which is
supposedly designed by the mutual conscience and acknowledgment of both the parties. Before
documenting or signing such a treaty both parties should be clear about its clauses hidden or
declared advantages, disadvantages and outcomes. The Agreement in this case was
misinterpreted by Juwan with Miami heat where Juwan had issues with disagreement of Riary
with his luxury and add-on benefits. Whereas Flake of Washington Bullet too dint gave a clear
picture to Juwan howard when he was called and explained what he is suppose to get in terms of
money and luxury.
This gave Juwan Howard to follow the negotiation principle of Once you're in negotiations, it's
always good for you to postpone a decision and plead that you have to run the deal by some
outside person with Higher Authority. In this case Juwan, almost refused Flake’s offer and joined
hands with Miami heat. This made Washington bullet to realize their loss of not having him in
team. Because of this action of Juwan, Washington Bullet later agreed to all demands of Juwan.
As Riary was not able to convey his promise into an agreement, the issue had to be taken up by
the higher authorities like NBA, CBA who gave decision in Juwan’s favor. Juwan knowingly or
unknowingly acted smart enough in front of Washington Bullet by taking a pause and then
presenting his case which he took to the I AGREE level. This mage Juwan Howard the highest
paid and worth player of the season.
The last stage of implementation can be best explained by Riary of Miami Heat’s act. He was
able to understand his opponent Washington Bullet’s weak points and Juwan Howard’s desire.
But unfortunately he failed to get it implemented in terms of action which was an agreement
between his team and Juwan.
In this case, the negotiators viewed this issue as a contest of wants in which power of the party
will determine the outcome. Because of this approach the results were short term and not long
term. They were more leading to win-lose process. At some point, Riary was also ready to lower
the price for other players in order to get Juwan on board. Riary knew that Juwan was a potential
player who could make Miami heat to win this season. The negotiation could have been effective
if they could have zeroed down to an agreement which was majorly accommodating both parties
interest and even prevent the relationship.
The biggest loop hole of this case was failure in understanding each other’s wants. Both the
parties to failed to present their case properly in front of each other. This created a lot of scope
for this awkward situation to arise. Based on the negotiating principles, the case could have
being deal in the following manner:
Understanding people:
Each party should separate the people/person from the issues to avoid personalizing them. Juwan
howard, a dedicated and loyal player of Washington bullet got confused between the larger
picture and his long time desires.
Washington bullet and Miami heat were fighting for Juwan Howard but failed to understand his
requirement and expectations. This matter could hav being solved by an active listening session
before directly making an offer to Juwan. The negotiation was narrowed down only to monetary
benefits and add-ons. This was taking the situation to wrong paths. If Juwan would have
communicated his wants and desires correctly or vice versa by team officials, they could have
got a clear picture and not argue on the position.
Understand Interests:
All negotiators should have tried to understand the interest behind each other’s wants. Juwan
Howard always wanted to be in Washington bullet but team officials never understood him until
he decided to play for some other team. Flake should have placed himself in Juwan’s shoes and
then analyze his wants. More than monetary gains there were respect and acknowledgement
issues in this case. Before jumping into an agreement and making an offer the team officials
should have checked whether any aspect of their proposal is contradicting those interests or not.
Work out on options:
One should never close the room for discussion. Once the wants and interest are clear, you
should work out on options. In case of Washington Bullet and Howard, apart from only
negotiating on contract amount they could have negotiated on other factors like selection of co
players, selection of coach, luxuries and new strategies. Juwan howard was closely attached to
Washington and this could have been the biggest point from where flake and other Washington
bullet official could have picked up the deal. They could have looked at multiple options to
dovetail differing interests, explore options which were high on benefits for both the parties
which they lately did to a greater extend.
Miami heat and Washington Bullet could have gathered more information before buying players.
They should have kept cool when proved by legal and media bodies.