The thing with Mike James is that he wouldn't be a starter on most teams in the NBA. The teams he could possibly start on as of now would be NY, Atlanta, Lakers, Portland(maybe), Minnesota, and maybe Cleveland.
Only one of those teams, Atlanta, and us have the space to give the guy what he's calling for in the papers recently. Would Atlanta spend their capspace on a 30 year old PG,? Not likely, I could see them going after Jason Terry before Mike James. Would Mike James play as hard for a team next year if he was coming off the bench? Not likely he seems to enjoy the spotlight and really steps up to plate (not a condemnation).
So, really Mike James can't really be too demanding in his situation this offseason. My worry would be that we sign him to a reasonable offer and he feels slighted that he didn't get 'his', I think a lot of people would feel a bit slighted by this. But there aren't a lot of teams who can offer more than the MLE this year, and even fewer teams where he could be the starter. So I think that signing James to a reasonable contract (if that's what the team wants to do) shouldn't be too hard, but I'd be really worried about how Mike James would react to being 'underpaid' for his services.
Very tricky situation for BC but I'm sure he'll handle it well, he's got a lot more information and insight in dealing with this situation than we do. I'll be a little upset if he gets resigned because I don't like his style of play as a PG, but if he gets resigned, even with all the warning signs that we've seen as fans, it will be because BC had good reason.