Bullets Get an Exemption for King : Basketball: Ruling could clear enough money for them to sign first-round pick Gugliotta.

The Washington Bullets Thursday received a league medical exemption for veteran forward Bernard King, and General Manager John Nash immediately began to work on reaching a contract agreement with first-round draft choice Tom Gugliotta.

King, who has not recovered from knee surgery performed in September 1991, is guaranteed his full $2.5-million salary, and can return to the team if he completes his rehabilitation successfully.

But the 13-year NBA veteran is still not permitted to run by his personal physician, Dr. Norman Scott. After only a three-day wait, the NBA’s medical advisory staff supported the Bullets’ argument that it is unlikely King, who turns 36 in December, would be back this season. He will officially begin the season on the injured list.

As a result, the Bullets can now apply half of his salary ($1.25 million) as a first-year offer to Gugliotta, the 6-foot-10 All-ACC forward from North Carolina State who was the sixth player chosen overall in the 1992 draft.

Nash and Gugliotta’s agent, Richard Howell, of Atlanta, were reportedly negotiating by phone Thursday and could not be reached for comment.

Judging, however, by their previous talks, Nash is expected to offer Gugliotta a contract ranging from six to eight years, with the player’s option to be released after three years.

Using $1.25 million as a starting figure and then adding annual 30% increments ($375,000), a six-year deal would be worth $13.1 million and an average of $2.19 million. An additional year would raise the total to $16.6 million and a $2.38 million average.

Gugliotta had rejected Nash’s original five-year offer of $10.7 million shortly after the draft. In July, the Bullets exceeded the $14-million team salary cap after having to match the New York Knicks’ six-year, $17.1-million offer to restricted free agent forward Harvey Grant.

This left Nash with only a $780,000 slot vacated by unsigned guard-forward Ledell Eackles as a possible contract hole for Gugliotta, which Howell also summarily rejected. Gugliotta then explored offers from teams in Italy, Spain and Greece, but ultimately decided he would prefer launching his pro career in the NBA.

Howell said he would accept “fair market value” for Gugliotta based on what the fifth pick (Notre Dame forward LaPhonso Ellis) and the seventh choice (Maryland guard Walt Williams) would receive.

The Denver Nuggets signed Ellis to a six-year package worth $16.775 million, or an average of $2.75 million. Williams has balked at Sacramento’s offer of a long-term contract worth $2 million a year.

Even if Gugliotta soon agrees to terms, he still must undergo a team medical examination and will likely miss the Bullets’ opening exhibition game against the defending champion Chicago Bulls in St. Petersburg, Fla., Saturday night. The Bullets conclude their work at Shepherd College this morning.

Denver Nugget forward Anthony Cook will undergo surgery to repair a ruptured patellar tendon in his right knee and is expected to miss the entire 1992-93 season.

General manager Bernie Bickerstaff said Thursday doctors were optimistic that Cook would make a full recovery.

Cook was injured during the team’s Blue-White scrimmage Wednesday night at the Air Force Academy.

Dr. Steven Traina, the Nuggets’ orthopedic surgeon, was to perform the surgery Thursday.

Cook and first-roud draft pick Ellis were the only power forwards on the roster.

The 6-foot-9 Cook, who played in only 80 games his first two seasons in the NBA because of knee and shoulder injuries, used his recovery time from shoulder surgery last spring to bulk up, adding 25 pounds of muscle. He now weighs 245 and was looking forward to challenging Ellis for playing time this season.

A captain controversy is brewing on the Indiana Pacers.

Reggie Miller and co-captain LaSalle Thompson said that Vern Fleming would be the second co-captain, but Fleming wants no part of it.

“I’m not a captain,” Fleming said. “I don’t want to be a captain.”

After a slow start, first-round draft pick Malik Sealy has started to impress the coaching staff.

“The last couple of practices he has really stepped up and gotten everybody’s attention,” Coach Bob Hill said.