Option D
Hire Jim Rutherford as PoHO and interim GM, fire Benning, Weisbrod, Green and any assistants not named Shaw or Clark, put Shaw in as interim coach, hire a couple of experienced assistant coaches (maybe even a few former head coaches looking for an inside track back in), and do a comprehensive search for a long term GM who can then evaluate and hire his coach in the off-season.
Give the players a clear signal they need to go back to earning their job and remove the favouritism and lack of objectivity from management and coaches regarding certain players.
Its better than any option you presented IMO.