Mike D’Antoni refuses to play Stephon Marbury, but says that he’s been “great.” Now it looks like the Knicks might buy out Marbury’s contract, which would allow him to play elsewhere this season.

Marbury, 30, has been adamant that he will not take a penny less than the $21.9 million he is owed this season. He is in the last year of his contract and has said he doesn’t expect this to be his final season. If he doesn’t play at all, it would be more difficult for Marbury, who does not have an agent, to negotiate a new contract.

Though Marbury is widely considered to be a cancer, he did average 8+ assists in seven of his 11 years in the league, so conceivably he could fit into D’Antoni’s up-tempo system if he were willing to buy into the pass-first philosophy. But the Knicks are 5-3 without him, so the chances of Marbury getting any playing time in a Knicks uni appear to be gone as there is just too much history between Marbury and the franchise to make the relationship work. From the Knicks perspective, it’s not worth trying to showcase him for a trade, because no one is going to want to take on his salary. (And quite frankly, the Knicks don’t want to take on equal salary in a trade. They’re trying to get under the cap by 2010 to make a run at LeBron.)

The best thing for both parties is a buyout, but Marbury needs to be willing to back off his “not a penny less” demands. He’s not going to get much of a contract next summer if he doesn’t play this year, and he’s not going to play this year unless he signs with another team. He should take a buyout of $10-$12 million, and sign a one-year deal with a team that could use him. If he plays well, he’d be in a position to sign a 2-3 year deal for decent money ($4-$5 million per season?). If he stands his ground and demands the full salary, the Knicks could punish him for his unwillingness to compromise by continuing to pay him for the season, but banishing him from the team, like the Tampa Bay Buccaneers did with Keyshawn Johnson a few years back. If they went that route, the decision would be made and it may (I repeat, “may”) cease to be a story. (After all, this is the NY media we’re talking about.)