I'm not an expert on NHL contracts but I'm pretty sure they have to pay him if they cut him, unless they buy him out. But why buy him out at this point? Just send him to GR. If he figures something out, which is not totally out of the question, call him back up. If not, maybe you move him later or just let him play out his contract.
Pure speculation, but you can imagine a guy like him having an over-inflated sense of his value and not being very coachable.