PHILADELPHIA-- Cleveland inched a step closer to obtaining a franchise in the National Basketball Association last night -- if the league does expand at all.

Nick Mileti, owner of the Arena and Barons, met with the NBA expansion committee for less than an hour, and although nothing official was announced, he was invited to remain here today.

MILETI IS here with a $100,000 earnest money check ready and willing to bring a NBA franchise to Cleveland.

He heads a group of 25 people who have arranged for $1 million loan from Cleveland bank if the city does enter the NBA. The price asked for a franchise is in the neighborhood of $3 million, payable over five years with a one-third down payment requested.

Cleveland, along with Buffalo, Houston and Portland, Oregon is the front runner for one of the two open sports -- if the league expands.

Mileti originally planned to come here specifically for last night's expansion meeting. He was going to fly to St. Louis for hockey meetings. However, Jack Kent Cooke, owner of the Los Angeles Lakers and chairman of the expansion committee, asked him to stay over through today. That request was the most positive sign Mileti saw at last night's confab.

"THEY ASKED us a lot of questions," said Nick, "They wanted to know the capacity of the Arena and if it could be expanded if we owned the building, location and what playing dates could be offered.

"We told them we have committed half of the prime dates (Fridays, Saturdays, and Sundays) to basketball and that the Arena could be expanded to 17,700 for hockey and 19,500 for basketball. We can now house 9,300 for hockey and 10,500 for basketball."

(The Arena expansion plan was announced in the Plain Dealer last summer).

"The committee, however, indicated there was still a question if the league would expand at all," added Mileti. "But they didn't say anything definite, whether they would or won't."

THE ARENA owner said that terms and conditions were not mentioned in the meeting, but added that Cooke said this was still in a state of flux.

The NBA board of Governors (all 14 owners) will meet today at 1 p.m. Cooke told Mileti last night that he would be contacted some time today.

Cleveland was the only city represented at last night's session, and Mileti said the committee knew the Cleveland situation well. "I only confirmed what information the league already had."

"THEY HAD Pinkerton's (detective, agency) checking on us," chuckled Nick.

In addition to Cooke, the expansion committee includes Fred Zollner (Detroit), Joe Axelson (Cincinnati), Richard Bloch (Phoenix), Robert Brietbard (San Diego) and Samuel Schulman (Seattle). Three of the six committee members represent expansion teams.

Although he's in town, NBA commissioner Walter Kennedy was absent from the session because of a severe case of laryngitis. Administrative assistant Carl Scheer represented Kennedy.

"It wasn't a negotiating session," explained Mileti. "But I do believe we made a good impression.

"COOKE ASKED if we had drawn projections of attendance, operating costs …etc, and I showed him we had.

"Cooke said, 'You've done your homework.'"

Mileti said that he believed that the committee was impressed that Cleveland interests owned their own building and their association with the Kettering Foundation.

Rumors of a merger with the American Basketball Association still persisted last night, however, Kenney's office said there was no truth to them at all.

THE COMMISSIONER'S office will hold news conferences today at 11:30 a.m. and at 5 p.m. , presumably to announce if there will be an expansion and if so who will be added.

Following the meetings will be 20^th annual All-Star game, set for tomorrow night at 8:30. It will be nationally televised and seen in Cleveland on WEWS, Channel 5.