Dudley’s Trade Approved

A three-man appeals panel issued a quick decision in the Chris Dudley case in New York, upholding an earlier judgment that clears the way for a trade of the backup center to the Knicks.

Dudley will be sent to the Knicks from the Portland Trail Blazers, who reached an agreement with the player on a $1.13-million contract while he was a free agent and then traded him to the Knicks in a three-way deal also involving Toronto.

The Raptors will receive second-year forward John Wallace from New York, the Knicks will get the Raptors’ first-round draft pick in 1998 and Portland will receive New York’s No. 1 pick.

A snag in the trade, apparently involving the draft picks, developed, however, and general managers Ernie Grunfeld and Isiah Thomas spent several hours on the phone trying to work it out.

“We disagreed with the result, but we will obviously comply with the ruling of the appeals panel,” NBA deputy commissioner Russ Granik said. “This is an issue we will have to address in the next round of collective bargaining.”

At issue was whether Dudley, who opted out of a contract with three years and $13 million remaining on it and then re-signed with Portland after realizing he had misjudged the free-agent market, could sign for a lower salary with the Trail Blazers, be traded to the Knicks and still retain his Larry Bird-exception rights, which gives players who play three or more years with the same team the ability to re-sign with their current team regardless of the salary cap. It would grant Dudley the right to secure a long-term deal with the Knicks after playing for a lower salary this season.

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The Seattle SuperSonics signed free-agent guard Greg Anthony to a one-year contract. Anthony, 29, played the past two seasons in Vancouver. . . . Phoenix Sun forward Loren Meyer will be sidelined at least three months after undergoing surgery to repair a herniated disk. Meanwhile, forward George McCloud had an MRI exam on his right knee, which he injured in Wednesday night’s scrimmage. No structural damage was found and McCloud should be able to resume playing in a week, the team said. . . . The Summit, home of the Houston Rockets, will be renamed the Compaq Center in a deal announced by Compaq Computer Corp., and the Summit’s management company, Arena Operating Co. If the City Council agrees, Compaq will pay $5.4 million over six years to upgrade the city-owned stadium.