Houston Gamblers owner Jerry Argovitz, under pressure from the U.S. Football League commissioner, has sold his lucrative business of negotiating players' contracts to a group of Houston businessmen, Argovitz told UPI yesterday in Houston.

The deal for an undisclosed amount of cash was finalized Thursday, leaving NFL players Joe Cribbs of Buffalo, Curtis Dickey of Baltimore, David Overstreet of Miami, Billy Sims of Detroit and Robert Brazile of Houston in the hands of Jeff Prosser, 43, an international construction equipment salesman who recently involved himself with pro athletes' contracts.

Argovitz, a former dentist who earned millions through his pro football players, had been ordered when he organized the fledgling Gamblers earlier this year to remove himself as a players' agent to avoid possible conflict of interest . . .

General Manager Mike McCormack of Seattle wants the National Football League to have a look at contradictory medical records in the Seahawks' aborted trade of running back Sherman Smith to the Kansas City Chiefs.

Smith, the Seahawks' all-time leading rusher, was traded to Kansas City during the exhibition season but the deal was nullified when Smith failed his Chiefs' physical. Chiefs' doctors cited an ominous "narrowing" of Smith's spinal column and questioned whether he should ever play again.

Before Smith arrived in Kansas City, the Chiefs had another swap with Los Angeles and acquired Ram running back Jewerl Thomas. They later announced that Smith failed his physical . . .

Jim Spavital, general manager of the Michigan Panthers, resigned from the U.S. Football League club, the Panthers announced. Spavital, 56, "will pursue other opportunities both in and out of football," Panthers spokesman Tim Pendell said.