Carter, a University of Hawai'i alum, missed a June 30 deadline to inform the Heat of his intention to exercise the third and final year of his contract for $4.1 million.

The oversight by Carter and his agent, Bill Duffy, leaves it up to the Heat whether they want Carter to return, and could instead make the team a major player in NBA free agency, with up to $11 million to spend.

Duffy and Carter could not be reached for comment.

Carter, 28, signed a three-year, $12.1 million contract in 2001, but has never developed into a fulltime starter. He started 26-of-49 games last season and averaged 5.5 points and 4.3 assists per game. Carter, who is 6 feet 2, has a career 38.3 percent shooting average.

Several newspapers reported the Heat considered waiving Carter during the past season, challenging his right to invoke the option for next season. But Coach Pat Riley disagreed with the idea and honored the contract. The Heat were 25-57 last season.

Carter's blunder could force him to play for the $688,679 NBA minimum this season for a player with four seasons of experience.

MORE NBA

• James works out with Cavs: LeBron James took the floor for the first time as a member of the Cleveland Cavaliers.

The much-hyped No. 1 draft pick went through his first practice with his new teammates and coaches last night in Orlando, Fla.

James participated in a two-hour workout as the Cavaliers prepared for Orlando's six-team instructional league. James is expected to make his summer league debut Tuesday against the Magic.

• T-Wolves sign top pick: The Minnesota Timberwolves signed first-round draft choice Ndudi Ebi yesterday.

Ebi, a 6-foot-9, 195-pound forward from Westbury Christian High in Houston, was chosen 26th overall. He received a three-year deal with an option for a fourth, a standard package as part of the league's sliding scale for rookie contracts.

The team did not disclose terms of the contract. But according to the scale, Ebi would earn about $2.25 million during his three-year contract.

SOCCER

• Final Cup berth at stake: Mexico and Japan played to a 2-2 tie yesterday in Mexico City in the first of a two-game series to determine who will earn the last berth for the Women's World Cup.

Yayoi Kobayashi and Tamomi Miyamoto scored for Japan, while Iris Mora and Marlene Sandoval scored for Mexico.

The two teams play again next week in Japan.

The World Cup opens Sept. 20 in the United States.

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• Murray Walker, British sports broadcaster, during a recent Formula One auto race telecast: