The Boston Herald reported that a five-year, $7 million offer sheet Kevin McHale of the Boston Celtics is reportedly about to sign with the New York Knicks would earn him $1.25 million annually plus the interest from an interest-free loan of $3 million.

The Herald said the loan would amount to added income because of the almost $300,000 in interest McHale could earn from it in the first year alone. Knicks officials contend that such a move will not count against their salary cap because the $3 million would be repaid in full. It has been reported that the Knicks will violate their salary cap if they sign McHale for $1.4 million per year.

Celtics General Manager Red Auerbach told the Herald he doesn't think the NBA will allow such a deal because the Knicks would be "circumventing the salary cap restrictions" set in the league's collective-bargaining agreement.

Saturday night, Knicks vice president Dave DeBusschere said, "We have not reached an agreement, nor is there an offer sheet for McHale to sign. I have been trying to stay away from reading and listening to the figures that we have reportedly offered or are ready to offer McHale. Some of the numbers are ridiculous, others simply funny" . . .

The Bullets' portion of the NBA draft at Capital Centre Tuesday will be open to the public as in previous years.