Payton Stays in Seattle, Knicks Get a Backcourt

After saying it would be an honor to play with Hakeem Olajuwon in Houston and then raving about Pat Riley and the Miami Heat, Gary Payton turned out to be all talk when he signed an $85-million contract with the SuperSonics on Sunday that will keep him in Seattle for seven years.

The Heat was the last team to have a shot at Payton after the Knicks, Hornets, Rockets and Bucks dropped out, but they lost out when Seattle increased its offer. The signing was to be announced today.

“Gary wanted to do everything possible to stay in Seattle. His heart was there, and they moved real well to keep him,” agent Aaron Goodwin said.

While Payton stayed put, a pair of guards landed in New York as the Knicks decided to spend their $9.2 million in salary-cap room on point guard Chris Childs and shooting guard Allan Houston. New York also completed a trade for Larry Johnson, sending Anthony Mason and Brad Lohaus to the Charlotte Hornets.

Houston agreed to leave the Detroit Pistons for $56 million over seven years and Childs agreed to leave the New Jersey Nets for $24 million over six years.

“We hit the jackpot,” General Manager Ernie Grunfeld said. “We’ll be one of the top teams competing for the championship, not only this year but for years to come.”

To make room under the salary cap for the three new players, the Knicks renounced their rights to Derek Harper, J.R. Reid, Gary Grant, Willie Anderson, Eric Anderson, Anthony Tucker and Ron Grandison.

Childs will replace Harper and Houston is expected to move into New York’s lineup in place of John Starks, whose long-term contract makes him almost untradeable.

The Heat reportedly agreed to terms with center Alonzo Mourning on a seven-year contract worth $105 million.

Also, the Houston Rockets and Olajuwon have agreed in principle to a five-year contract worth between $55 million and $60 million, the Houston Chronicle reported.

As expected, the Lakers lost a chance to sign Dale Davis, who chose to re-sign with Indiana for seven years and $42 million, sources said. Indiana also reached agreement with Antonio Davis, who will re-sign for $38.5 million over seven years.

Indiana was said to have the best shot at re-signing Reggie Miller, who has drawn interest from the Lakers and Pistons.

Miller had expressed a preference for playing in New York and the Knicks were ready to make an offer Saturday, but they signed Houston after he accepted their offer Saturday morning.

That left Detroit without a shooting guard, and the Pistons were pursuing Hersey Hawkins of the Sonics.

Meanwhile, Charles Barkley told NBC Sports that the NBA had quashed a proposed three-team trade because the teams involved had violated the moratorium on negotiations that expired last Thursday.

“One of my agents said the league wouldn’t let the deal go through because too much tampering had been involved,” Barkley said. “I think that’s gutless on the part of the NBA because everybody has tampered. To hold me hostage because they’re trying to prove a point is unfair.”

Barkley expected to be traded to Houston in a three-team deal that would have sent Robert Horry and Sam Cassell to Denver and Dikembe Mutombo to Phoenix.

Mutombo is a free agent, however, and may be able to get a better offer than the $8.5-$9 million annually that the Suns would have paid him.

The Atlanta Hawks were believed to be offering close to $10 million annually for seven years, and Detroit was in on the bidding as well.

Atlanta and Detroit also were rumored to be talking to the Suns about a trade for Barkley.