SOURCES SAY BRYANT WANTED JACKSON OUT.

Byline: Howard Beck Staff Writer

EL SEGUNDO - A spectacular breakup of the NBA's most glamorous team moved into overdrive Friday, when the Lakers parted with coach Phil Jackson, considered a trade demand from Shaquille O'Neal and received notice that Kobe Bryant would terminate the final year of his contract.

Bryant's decision was expected, but the ripple effect is greater than anyone anticipated.

Jackson's departure is a direct result of the team's desire to keep Bryant, according to sources close to both parties. O'Neal's trade demand is at least loosely related - he is close to Jackson, uneasy with Bryant and unwilling to stay if Bryant is calling all the shots.

``This is Kobe's team now,'' a source close to the situation said late Friday. ``They feel that's their best bet for winning a championship in the future, with Kobe.''

After days of speculation, Jackson finally learned his fate Friday afternoon, in a face-to-face meeting with owner Jerry Buss. The meeting was said to be cordial and Jackson was philosophical about the result.

``The experience of the past five years has been great,'' Jackson, 58, said in a prepared statement. ``Three rings and a fourth opportunity makes this a bittersweet ending, but it's time to pause and reflect. I'm appreciative of all the Lakers, the organization, the fans and Dr. Buss.''

The team has offered Jackson a front-office position, which he is expected to decline. Those close to Jackson expect him to take a year off before entertaining offers to coach another NBA team.

``Everyone asks, 'Is he done with coaching?' I would say Phil's got a lot of games left to coach, the gleam is still in his eye,'' said Jackson's longtime agent and friend, Todd Musberger. ``This is not a man that's hanging it up, in my view.''

Although he had mixed feelings about continuing with the Lakers, Jackson would have returned had Buss extended an offer. Buss did not.

``There was no attempt on behalf of the Lakers to ask him to return as head coach,'' Musberger said.

Nor did Buss offer a specific reason for ending Jackson's five-year tenure. ``I don't know that it was characterized as a reason, so much as just a general statement of the team's philosophy and what they felt was best for them to do at this time,'' Musberger said.

That philosophy, team sources say, is simple and absolute: Keep Bryant at all costs.

The 25-year-old superstar followed through on his vow to opt out of his contract Friday. He will be a free agent as of July 1, and eligible to sign with any team.

The Lakers can offer a package that is about $42 million richer than any competitor can make. But it might take more than that to keep Bryant.

Bryant and Jackson had grown weary of one another over the past five years, and Bryant made it clear to management that he wanted a change on the bench, sources said. Those close to Jackson say he would still be coaching the Lakers if Bryant wanted him.

The two met one final time Friday afternoon, in private at the Lakers' practice facility. Those who spoke with Jackson say the meeting went well, and that Jackson and Bryant aired out many of their past differences. They hugged before parting. However, Bryant never said he wanted to continue playing for Jackson.

Hours later, Buss told Jackson it was time to part ways.

``In my opinion, Phil is the best coach in the history of the NBA, and he did a phenomenal job for us these past five years, for which I am very grateful,'' Buss said in a statement. ``Not only did he help lead us to three more championships, but he helped the Lakers regain our status as one of the greatest, if not the greatest, franchises in all of sports.''

A spokesman for Buss said the Lakers' owner is leaving for vacation in Europe next week and would not comment on anything before he departs. General manager Mitch Kupchak also declined to comment.

Before leaving the Lakers' practice facility, a cheerful Jackson smiled at reporters but said he would not comment on his pending meeting.

``Phil does not have ill feelings for the way this ended,'' Musberger said. ``Phil as a seasoned NBA veteran recognizes that ownership always has the prerogative to choose the person they feel is best at that moment.''

The Lakers went 12 years without a championship, and were swept out of the playoffs in consecutive springs, before Jackson arrived in June 1999. He immediately guided the Lakers to three consecutive championships, increasing his personal ring count to nine.

After a second-round exit a year ago, the Lakers made a fourth appearance in the Finals under Jackson this season. It ended with a 4-1 loss to Detroit, Jackson's only defeat in the championship round. He arrived in L.A. with six rings from his tenure with the Chicago Bulls, and with the authority and respect to unify O'Neal and Bryant, the team's feuding superstars.

There is no clear-cut favorite to replace Jackson, and it is expected that any candidate will have to meet with Bryant's approval, assuming he re- signs with the team, which is not a given. Among the names being floated within the organization are former Houston Rockets coach Rudy Tomjanovich, ex-Lakers coach Pat Riley and former Seattle and Milwaukee coach George Karl. If Buss chooses to stay in-house, he could consider Lakers assistants Kurt Rambis and Jim Cleamons.

In the meantime, the Lakers will begin the process of re-recruiting Bryant, a free agent for the first time in his eight-year career.

A prominent Lakers official heard that Bryant already had sent word to the Clippers of his interest in possibly moving down the Staples Center hallway.

After meeting with Jackson, Bryant and his agent, Rob Pelinka, met with Kupchak. On his way out of the Lakers offices, Bryant walked past reporters in the players parking lot and said, ``Thanks for everything. Have a nice summer.'' He did not stop to talk.

Howard Beck, [phone]

howard.beck(at)dailynews.com

CAPTION(S):

6 photos, box

Photo:

(1 -- color) Sources indicated Phil Jackson (pictured) still would be coaching the Lakers if Kobe Bryant wanted him to stay.

Edna T. Simpson/Daily News

(2 -- 6) no caption (Phil Jackson)

Box:

PHIL JACKSON TIMELINE