Unfortunately, you have to let them show up on campus and cut them next offseason.
I think it would be cool if, on the day of the second recruiting cycle (from 8am - 5pm), the coach is provided a "meet incoming players" tab to select one of a few options like "we don't plan to use you here", "we are rescinding your scholarship offer", etc. It gives the coach a chance to avoid players who are terrible and gives them the resources they need for next season. Even add on an option or two like "we plan to start you", "we plan to play you X minutes", etc. and give the player a small WE boost (just a few points).
The loss in recruiting cycle 1 is too significant as of right now. It makes switching jobs a pain, and worse, it makes returning or joining the game almost a set back. New coaches should be wanted and added with open arms, but they have to start off behind the 8-ball and probably gives them an initial disinterest in the game.