Ira Winderman of the South Florida Sun-Sentinel reports: Heat coach Pat Riley enters Monday's start of the NBA free-agency period with a little pocket change, courtesy of a compromise by owner Micky Arison regarding the luxury tax.

Next summer is when Riley plans to enter the process with some full-fledged spending money.

"That's still our mantra," Riley said. "That's what you push for, to get to a point where you have flexibility."

That means this summer, the top of the free-agent class, the likes of Mike Bibby, Michael Olowokandi and Rashard Lewis, likely will remain beyond the Heat's grasp. Instead, names such as Devean George, Travis Best and Keon Clark could hold the most intrigue.

But unlike last year, when the looming luxury tax rendered the Heat practically impotent during free agency, Riley's team again will be a player this summer, with no preset spending limit from Arison.

"It's an absolutely huge advantage if you're not encumbered," Riley said of the payroll strata that could require a significant penalty payment to the league. "How far we go over? I have no idea. I still have to be able to prove it's worthwhile to my boss."

Miami, like all teams over the cap will have a $3.6-4.8 mid-level exception. They also have a 1.4 million exception and $3.36 million traded-player exception until August 23rd from the Hardaway deal.

All in all, look for Miami to make moves this summer but also save some caproom for the summer of 2003.

Barry Jackson of the Miami Herald reports: Riley said no trade offers are on the table. Asked about Alonzo Mourning, Brian Grant and Eddie Jones, Riley said, ``I would probably say all three will be back. [Drafting Caron Butler] probably makes that more likely.''

? On draft night, Milwaukee offered small forward Glenn Robinson, who has three years left on an $80 million contract, in exchange for the 10th pick, Chris Gatling, who was released Thursday, LaPhonso Ellis and Anthony Carter. But Miami prefered Butler. If Butler hadn't been available, the Heat leaned toward drafting Jared Jeffries.

According to a general manager, the NBA unintentionally helped the Heat by refusing to allow the Clippers to change the No. 8 pick from Chris Wilcox to Butler before commissioner David Stern announced it. Butler would have been sent to Cleveland in a package for Andre Miller.

? Riley said the Heat will exercise its partially guaranteed option on center Sean Marks and wants him to report in September following commitments to New Zealand's national team.

? Riley also said that he would not rule out re-signing the recently waived Chris Gatling.

Barry Jackson of the Miami Herald reports: Even after drafting small forward Caron Butler, coach Pat Riley indicated Friday the Heat will seek swingmen and perimeter-oriented players when free agent negotiations begin Monday.

Riley said he expects to use at least a portion of the Heat's $4.6 million salary-cap exception but will not offer it at the outset of free agency or when signings can begin July 17.

''We have the whole summer to do this stuff,'' Riley said. ``We've learned a lot of players wait until September, and we've found players late.''

Riley also said the Heat might give deadlines to free agents so Miami doesn't lose a chance to pursue other players.

Because the Heat wants to have cap space in 2003, Riley said he probably will not offer a longterm contract starting at close to the exception.

Most teams are near or above the projected $53 million luxury-tax threshold. The Heat has $49.9 million committed to the five players with fully guaranteed contracts and must pay Butler $1.67 million in the first year of a three-year deal, with a team option for a fourth and right-to-match for a fifth.

Heat owner Micky Arison, originally reluctant to pay any luxury tax, now appears willing to pay a small one.

Much of the $4.6 million exception could be enough to sign a small forward such as the Lakers' Devean George, Boston's Rodney Rogers or Utah's Bryon Russell or Donyell Marshall.

Ira Winderman of the South Florida Sun-Sentinel reports: Arrested 15 times before he was 15, Caron Butler faced enough hurdles in trying to make it to the NBA.

One of them, the Heat first-round draft choice insisted Thursday, was not a battle with a wounded knee.

Butler said erroneous reports of knee trouble soured his draft experience and, perhaps, his place in the draft.

"I never had a knee problem," he said upon his introduction to the South Florida media. "I broke my leg when I was 12 years old, and I haven't had a problem since. I haven't missed any games."

Yet there it was, on national TV, reports of ACL trouble. And on the draft floor at Madison Square Garden, word reached Butler of reports that he had been shot in the knee during his tumultuous adolescence.

During the draft, Heat coach Pat Riley was asked about the forward's knee. He responded that it was not unusual for a prospect to have endured and recovered from such problems.

Butler said several agents had attempted to "buy" him as a client, overtures he had shunned. "So they just put rumors out there," he said.

General Manager Randy Pfund said there were no red flags during Butler's predraft physical, no ongoing concerns.

The Associated Press reports: The Miami Heat waived Chris Gatling on Thursday, meaning the 6-10 forward/center will change teams for the seventh time in the last four years.

Gatling averaged 6.4 points and 3.8 rebounds in 54 games last season - his third stint with the Heat.

He spent part of the 1995-96 season with the Heat and briefly rejoined the team before the 2000-01 season. Two months after coming to Miami, the Heat dealt him to Cleveland in the trade that brought Brian Grant to Miami and sent Shawn Kemp to Portland.

The Heat reacquired Gatling before last season in a three-team trade with Toronto and Cleveland.

Gatling began his career with the Golden State Warriors in 1991. He has played for eight teams in 11 seasons, averaging 10.3 points and 5.3 rebounds.

The Heat have the 10th pick in the draft and are getting some phone calls. Barry Jackson of the Miami Herald reports that Portland or Orlando could be interested in moving up in the draft. Miami?s pick could be available to them.

According to two league sources, Portland has interest in a trade that would send the Blazers' first-round pick (21st overall) and power forward Zach Randolph to Miami for the 10th pick, if it would allow the Blazers to select power forward Amare Stoudemire. For that trade to work within the salary cap, additional players would need to be added, such as Miami's Anthony Carter and Portland's Steve Kerr. Complicating matters is the fact Phoenix is considering Stoudemire at No. 9. Miami would have little incentive to make the trade if it can select a player it covets at No. 10.

The Heat would like Portland?s Bonzi Wells, but as a free agent, he can?t be traded until he signs a new contract in July. The Blazers aren't believed to be interested in reacquiring Brian Grant, so a trade involving Wells likely would require a third team. Interest in Grant is limited.

Orlando, which selects 18th, covets one of the top power forwards in the draft and has spoken to the Heat about exchanging picks, sources said. The Heat's interest would be piqued if forward Mike Miller is dangled. The Magic reportedly offered Miller and its pick to Memphis for the fourth pick and Denver for the fifth pick.

If the Heat can?t use the pick to gain a quality veteran, they will likely keep the pick and choose the best player available. Among the players they would like to see drop to #10 are Carton Butler, Jarred Jeffries, Qyntel Woods and Maybyner Hilario.

Raptors? GM Glen Grunwald isn?t impressed with the talent in this years? draft. Doug Smith of the Toronto Star reports that the Raps may try to trade out of the first round of Wednesday?s draft.

Grunwald said yesterday he'd seriously consider trading his team's first-round pick ? for a future draft choice, a pick lower in the first round or a player already under contract ? if he isn't entirely thrilled with the talent available when it's his turn to choose. "I don't think we'd move up (in the draft)," Grunwald said yesterday as another gaggle of would-be Raptor point guards traipsed through the Air Canada Centre to work out. "I think we'd trade out if the guys we want aren't there."

While most teams are laying smoke screens and releasing misinformation to try and disguise who they want to pick, the Raptors have made it clear that they need back court help, including yesterday's prime workout attraction, 6-foot-3 Illinois point guard Frank Williams. He and Gonzaga's Dan Dickau, who is scheduled in for a second workout this weekend, are mentioned the most when experts, and others, discuss Toronto's draft intentions.

The fact that the Raptors have been working out players that should be available at the end of the first round adds credence to the theory that Grunwald may trade down. Two of those ? Fordham's William (Smush) Parker, a 6-foot-4 scorer, and Fresno State's 6-foot-4 Tito Maddox ? were in for second looks yesterday and will undoubtedly be on the board for selections 25 through 28.

The players the Raps really want, Dickau and Williams, could be selected by Orlando and Utah with the 18th and 19th picks. Both teams have shown interest.

Grunwald said if he were to move back in the draft or out of it entirely, it would be relatively easy to work out a trade. He said he's talked to a few teams already in preliminary discussions but nothing would be finalized until the draft starts to unfold. The Miami Heat, who have the 10th pick, have made no secret they want a second pick, somewhere in the range of Toronto's 20th selection.

Ira Winderman of the Sun-Sentinel breaks down the draft possibilities for the Heat and their #10 pick. After Mike Dunleavy Jr. decided to remain in the draft, the first round has become a little clearer. The first three picks will probably be Yao Ming, Jay Williams and Dunleavy. After that, it?s not so certain.

Drew Gooden may not get past Memphis with the #4 pick. Chris Wilcox will probably not make it past the Knicks at #7. Word is that Nene Hilario will not get past the Suns at No. 9. Caron Butler limited his workouts to only teams holding the top eight picks in the draft, casting him as unlikely to make it beyond the Clippers' No. 8 selection.

With those seven seemingly beyond the Heat's grasp, the wild cards appear to be Italian League forward Nikoloz Tskitishvili, Memphis guard Dajuan Wagner and Indiana forward Jared Jeffries.

While the Warriors spent the weekend in Italy looking at Tskitishvili, indicating a relevance as early as No. 3, Dunleavy's opt-in seemingly makes such deliberations moot for Golden State. Jeffries appears on the rise, with Memphis, selecting at No. 4, having him in for a second workout.

The key to the equation could be Wagner, who could attract interest from Denver at No. 5 and also has been linked to Cleveland at No. 6. If Wagner gets beyond No. 6, he could go to the Clippers at No. 8 or fall for a while.

Early draft speculation had a pair of athletic youngsters, junior-college forward Qyntel Woods and Orlando-area prep standout Amare Stoudemire, as top-10 prospects. Woods, however, remains so unpolished that he could slip well beyond the Heat's selection unless he overwhelms the team in a workout today at AmericanAirlines Arena. Stoudemire, has slipped to the point where the Trail Blazers reportedly are considering trading for the Clippers' No. 12 selection to nab the imposing power forward.

The Heat have changed their philosophy regarding the NBA?s luxury tax. Ira Winderman of the Sun-Sentinel reports that Pat Riley said the team will not allow the luxury tax to stand in the way of winning.

"We are not going to be supersensitive to it like we were last year," Heat coach Pat Riley said Tuesday. "We want fans to know we're not going to be thinking tax, tax, tax. We want to win."

Riley said the Heat is attempting to acquire a second first-round pick, in addition to its No. 10 lottery selection, which would explain workouts for such players as Carlos Boozer, Lonny Baxter, Tayshaun Prince and Dan Dickau.

Riley, who previously said the team would exceed the tax threshold in free agency only for a "great player," said the $4.5 million mid-level exception now could be applied to an answer for the team's void at small forward.

Last season was frustrating for Riley and the Heat as the threat of the tax forced them to curb their off season spending. As it turns out, with leaguewide 2001-02 salaries falling at less than 61 percent of overall revenues, there will be no tax assessed for this past season. Riley said before last season, without the looming threat of a tax, he would have been far more aggressive in attempting to retain Anthony Mason, Tim Hardaway, Bruce Bowen and Dan Majerle.

Other NBA teams are still governing their salaries with the tax in mind. This could give the heat an advantage in free agency, which could help them revitalize a stagnant roster.

For example, Boston is considering an uncompromising approach with the tax that could cost it the services of forward Rodney Rogers. Similarly, small-market Utah is not expected to be able to re-sign both Donyell Marshall and Byron Russell, small forwards who could fill a Heat need. And Devean George could emerge as a starter elsewhere after playing as a reserve for the tax-cautious Lakers.

Pat Riley knows that his Heat need a small forward, but he?s prepared to take the best player available, regardless of position, when the Heat pick at #10. Barry Jackson of the Miami Herald reports that Riley also said no trade offers have been made for Alonzo Mourning, who has one year left on his contract. ''We're not moving Zo in the next year,'' Riley said.

Riley wasn't as emphatic about Brian Grant and Eddie Jones but said, ``We're not discussing those guys in trades.''

The Heat recognize that the draft is very heavy with big men and will draft accordingly. ''There are a number of big players we like,'' Riley said. ``The perimeter players and point guards [who could be available at No. 10] have been a little questionable.'' If the Heat drafts a power forward or center, it would acquire a starting small forward through free agency or trade.

Riley likes Qyntel Woods and Jared Jeffries as possible small forward who could be available. ''I think as a big man, he's exceptional,'' Riley said of Jeffries, who will work out for the Heat on Friday.

Woods, an outstanding shooter at 6-8, has played two years of junior-college ball and lacks polish. ''There are real question marks because of the level of competition,'' Riley said of Woods. ``He has some gifts, good size and length. He reminds some people of Tracy McGrady, how he plays.''

Other possible picks for the Heat include Maybyner Hilario, Curtis Borchardt and Dujuan Wagner. Riley likes them all. ''Hilario has the kind of gifts you don't see come around very much,'' Riley said. ``Borchardt is very impressive. He reminds me of [Indiana's] Brad Miller. He can shoot from outside. He comes from a great system, which is high on our list. He's ready to play.'' Wagner has declined to work out for teams picking worse than eighth, but Riley said he's comfortable drafting a player he has seen only on tape.