Houston Oilers -- Signed DE Ray Childress of Texas A&M, third player chosen in the 1985 NFL draft, to a $1.85 million, four-year contract. BASEBALL
Toronto Blue Jays -- Called up LHP Steve Davis and C Jeff Hearron from AAA, sent down RHP Ron Musselman; released C Gary Allenson (.118).
Montreal Expos -- Recalled LHP Jack O'Connor from AAA Indianapolis, replacing Joe Hesketh, lost for the season with a fractured left shin. COLLEGES
Tennessee State -- Appointed Gale Sayers, NFL hall of famer and former athletic director at Southern Illinois, to serve as interim athletic director; he will work three days a week beginning Sept. 16 and help search for a permanent replacement for resigned Robert E. Lee.
Tennessee-Chattanooga -- Named former Auburn assistant Mack McCarthy basketball coach, succeeding Murray Arnold, now of NBA Chicago Bulls staff.
Syracuse -- Ruled senior HB Harold Gayden, Orangemen's second-leading rusher and top touchdown scorer the last two years, academically ineligible for 1985 football season. EQUESTRIAN
U.S. Cup -- Melanie Smith of Litchfield, Conn., rode Calypso to first place and won $50,000 in the $200,000 show jumping event Friday at Commonwealth Park in Culpeper, Va. Smith covered the jumpoff course in 36.48 with no faults. DIVING
Junior Olympics -- Genna Weiss, 12, of Silver Spring won the gold medal in one-meter springboard at Woodlands, Tex.