Instructions
Start the game and the mode you would like to release a player in. This can be done in "Franchise Mode," "Online Franchise Mode," and the basic "Roster" list.
Assess the "Roster" section of the mode you want to release a player in. Your current team should be the first one that appears. If you are in any of the franchise modes, you will only be able to release players on your team.
Select the player you wish to release. On Xbox 360, the button you need to press is "A," whereas the button is "X" on PS3. A new window of options will appear with several options, including the "Release Player" option.
Click on the "Release Player" option. If the player is not due for a signing bonus, the player will be instantly cut. If he is due a roster bonus, a confirmation window will appear indicating the penalty you team will receive for cutting the player. This fee is always less than keeping the player on the roster.
Click on the "Yes" button to confirm the player's release if the confirmation window appears. The window only appears when the player is due a signing bonus.