If there is a basketball purgatory, the Knicks are in it, caught between the illusion of chasing a playoff berth and the likelihood they are about to rebuild for the future.

That was evident against the Cavaliers on Saturday night at the Garden, where LeBron James and the defending champions beat the overmatched home team 111-104. The Knicks played into the third quarter as if this season had little meaning before waking up in the fourth quarter. It proved to be too little too late, a recurring theme in this frustrating season.

“I just feel we need to play faster,” said Brandon Jennings, who sparked the late-game comeback from 27 points down. “It just makes it easier for everybody.”

Normally, the presence of James adds a bit of electricity to the proceedings, prompting the Knicks to open with their best effort or risk being embarrassed. But the Knicks accepted the embarrassment early on, trailing 84-57 with 2:37 left in the third quarter.

Truth is the Knicks got exposed. For the first half and into the third quarter, they looked nothing like a team that truly believes it is in a playoff hunt. The Cavaliers, playing without an injured Kyrie Irving, were so superior any notion of an upset was gone by halftime when Cleveland built a 64-45 lead.

Put simply, the Cavaliers looked like a team working its way toward the postseason. The Knicks looked like they were going through the motions.

That is an attitude that has trickled down from the top, starting with team president Phil Jackson. He could be acting like he believes in this team, which entered Saturday night just two games out (in the loss column) of the eighth playoff spot. Instead, Jackson has allowed rumors of trading Anthony to dominate the discussion leading into the nationally televised game.

The rumor mill continues to insist the Cavaliers and Clippers are discussing trade options for Anthony, speculation likely will continue up to the trade deadline. Anthony, who scored 17 points, admitted Saturday night the rumors are “testing me. It’s testing my will as a human being.”

The rumors and silence from the Knicks front office has put everyone else in a difficult position. No matter how much head coach Jeff Hornacek and a few other players might talk about being on the cusp of playoff contention, everyone knows it will be another wasted season if Anthony is dealt over the next three weeks.

Perhaps it helps the Knicks that Anthony didn’t exactly dazzle the Cavs with his performance. He looked uninspired and made just 6 of 20 field goals while sitting out much of the second half in foul trouble.

It was Jennings who sparked the Knicks in the second half, when he scored 18 of his 23 points. The Knicks got as close as 106-101 when Anthony stole a ball from James and scored. But then Kevin Love hit a 3-pointer, and James, who had 32 points, slammed through a breakaway dunk, and the Knicks comeback was over.

The uncertainty surrounding the Knicks has put Hornacek in a tough place. Are the Knicks trying to win now or rebuild for the future? We haven’t reached the All-Star break, and Hornacek has had to deal with Derrick Rose going AWOL for a day, a Jackson confidant writing how Anthony has worn out his usefulness in New York and the endless trade rumors about Anthony that Jackson won’t address. Remember the good old days when the triangle offense was the primary concern?

To his credit, Hornacek is coaching to win. But the noise surrounding the team could get worse. The trade rumors aren’t going to end, and the next five games include another game against the Cavaliers and games against the Clippers, the Spurs and Thunder. When Phil Jackson figures out if he wants to win now or later, let’s hope the Knicks are the first to know.