Eh, that's not true. Keeping him means his wage is still on the books. That money could be spent on someone else, even if it's just fractionally reduced while we loan him out.
The bigger issue is keeping him around. In order for him to play at least one game he has to be training with the team, and it's already clear that he didn't mesh well. Having this expensive barnacle hanging out will be a smidge toxic. Also, so long as he's earning that high wage and not playing, other players will (rightfully) ask for close to that or more, since they're actually contributing.
It isn't personal, but the sooner he's severed from the club the better.