If the club want to free up the coin, they have all the power. All they do is tell Latu that he will not get a run and will feature for Blacktown all year. In that case, he has the option of staying to play NSW Cup and earn his 335K for the year., which is entitled to do. However, another club comes knocking with a FG opportunity and 500k a season, and the decision is a no brainer.
I'm not suggesting that is what will happen, but if a club wants to free up space and move a player on, it's not overly difficult. It only becomes complicated when the player is undesirable to other clubs. In the case of Latu, not going to be a problem.