Thus, the initial negotiation was not a difficult choice, as Miami had both the lowest opportunity cost and the highest benefits.

Later, when Washington re-entered the picture, it was because the league had raised suspicion with respect to the Miami contract with Howard. As a result, the cost-benefit analysis and risk analysis shifted. If Howard went to arbitration against the league, he would risk losing $50-60 million over the length of his contract. In this new position, Howard would have felt that we would make about $10 million less if he went back to Washington, since that was the last offer from that team at the time. In addition, the career success benefit did not have the same opportunity cost that it did before -- if Washington won back Bird rights to Howard it would be able to add him to a team full of quality free agents that it...
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