CUBAN DEAL:

ABC Sports will be allowed to compensate Cuba for goods and services involved in broadcasting the 1991 Pan American Games as part of an agreement announced by the Treasury Department.

The agreement settles a December 1989 lawsuit filed by Capital Cities-ABC when the Treasury Department rejected ABC's proposal for live coverage. The department contended the proposal, which included an indirect $6.5 million royalty payment for exclusive U.S. rights, was an illegal transaction under the U.S. economic embargo against Cuba.

Its position was upheld in June by the U.S. District Court for the Southern District of New York. But ABC appealed the ruling to the U.S. Circuit Court and settlement discussions began.

LOCAL AIRING:

Channel 50 in Rockville and Channel 45 in Baltimore will broadcast Saturday's Independence Bowl game between Maryland and Louisiana Tech.

Other independent stations were offered the game, which will be produced by Raycom Communications, but Channel 5 didn't want to conflict with its Fox network programming and Channel 20 already committed to the Bullets-Hawks game from Atlanta.

Virginia public station WNVC (Ch. 56) purchased the local rights to Saturday's basketball game between Ohio State and American at Bender Arena.

SNN REVIVAL:

Mizlou Communications has reached a preliminary understanding for the sale of its financially troubled Sports News Network to Landmark Communications Inc. and TeleCable Corporation.

The proposed sale would be worth as much as $39.5 million.

SNN, an all-sports network, debuted last February and has been stricken by financial problems resulting in reduced live hours and personnel cuts. It moved in October from a site at the Gannett Building in Rosslyn to a new facility in Edison, N.J.

It is carried in the Washington area by Media General Cable.

SERIOUS STUFF:

ABC will present a one-hour special, "Athletes and Addiction: It's Not a Game," Sunday at 5 p.m., exploring the drug and alcohol addiction of some top athletes and their recovery.

Reflecting on their past problems will be former Redskins star Dexter Manley, former NFL running back Chuck Muncie and figure skater Tai Babilonia.

"This program will be one of the most important that we have ever done," executive producer Geoffrey Mason said. Jim McKay is the writer and host, with Lynn Swann reporting.

WLAF CONTRACT:

The World League of American Football, which will begin in March with seven teams in North America and three in Europe, signed a two-year agreement to be televised by Eurosport. ABC and USA have U.S. rights.