Do you commit to James knowing you can't win the finals as long as state is around?
Do you tear this up and tell James that he has no say on moves?
James is at the point of his career now where he has already played his best game and we all know that. Yes he will still give you a few solid years but he isn't a leader. He can't motivate these players. He doesn't take things into his own hands either.
Personally I would tell James to get lost. Save the money and rebuild the team.
Of course James is a legend and he still has the chance to change all of this in this series.