This is all the instructions say about the penalty for dropping a player's scholarship:

"Keep in mind that rescinding a scholarship of a player who you signed for no fault of the player may make recruiting for your school more difficult in the future, as no kid will want to play at a program which isn't loyal to its players. You do not receive any additional recruiting money when you rescind a scholarship. Also, cutting a player could cause other players to leave as well"

However, I thought I saw here or elsewhere that if you didn't recruit the player, there is no penalty. This is my first season, so I didn't recruit any of the players on my current roster, and I want to drop one of them. Can I safely cut a player the AI recruited without a penalty?

Yes, you are safe to drop any SimAI players that you did not sign. You will receive the resources for the opening created. You can even do this after Year 1 -- the roster I had was so horrid that I had to settle for getting rid of the most egregious parts and then limping through while trying to hide other weaknesses the best I could. My second recruiting year, I was still able to go back and cut/replace the remaining SimAI players that I was wanting to get rid of.

Thanks. I thought I read that somewhere, but I couldn't find it today.