AROUND THE LEAGUE

Jay Frye, the head of the group that owned the Fort Wayne (Ind.) Fury, plans to send a notice to Isiah Thomas this week demanding payment of $380,000 from the October 1999 sale of the Continental Basketball Assn.

Frye said he expects at least four other former owners to also seek payment after the league suspended operations two weeks ago. Thomas, now coach of the Indiana Pacers, refused comment.

Thomas paid half of the $9 million-plus purchase price for the CBA in 1999. The rest was to be paid over three years. However, a provision required him to immediately pay off the ownership groups if the league became financially insolvent or if he sold it.

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The New York Knicks reportedly continue to pursue Atlanta Hawk center Dikembe Mutombo as Thursday’s NBA trade deadline nears.

NBA sources confirmed that the Knicks, Hawks and Grizzlies have discussed a deal that would send Mutombo to the Knicks and forward Shareef Abdur-Rahim to the Hawks. The snag appears to be who the Knicks would send to the Grizzlies. The Grizzlies are reportedly seeking a package including either Latrell Sprewell, Allan Houston or Marcus Camby.

The Portland Trail Blazers and Phoenix Suns are reportedly also actively bidding for Mutombo.

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Point guard Gary Payton of the Seattle SuperSonics acknowledged that he would accept a trade, but only to a contender. “I’m not going to go to a team that’s losing,” said Payton, 32, the subject of serious trade talks for the first time. “I think that would be disrespectful to me to trade me to somebody like that.