When posters say 'cancel his contract' - do they mean 'pay up the remainder of his contract' ?
I assume the club would rather pay him when they have to - rather than up front in a lump - for better cashflow + there is still an outside chance somebody might loan him and get us some of his wages back.
It would be some legal battle to literally cancel a contract without paying the remainder and you'd definitely lose trust from any future signings.
Once they'd signed him, they've basically committed to his wages for the duration - and we are just avoiding the performance fees.
I'd be tempted to make him train with the reserves like they used to - not that he'd be a good influence !