At D3, that is a valuable defensive player in either m2m or zone (not press). Sure, you don't want to start him, but he can be effective at both SG & SF.
Where you may be making a mistake is redshirting him. Sounds like he has little potential, decent WE, & decent HSGPA. So he's going to max out in his categories without needing the extra season. More importantly, your class sizes are ZERO, 8, 2, 2. Having an open class can be a big benefit, in that you carryover 100% of bonus cash and retained carryover, when there are no open schollies (although it is terribly boring to sit out recruiting). However, you are turning that into a 1, 8, 2, 1 class structure. I suppose that you could just redshirt Murphy next season (assuming he takes it without a big WE hit), then that would give you another open class.
With a 6 scholarship cap on the budget, you might have been best off cutting two juniors when you first set foot on campus. It's almost never a good idea to cut a senior. The water's under the bridge now.