The following is from WWE.com:
WWE has come to terms on the release of Sabu. We wish Sabu all the best in all future endeavors.
The Observer are claiming the following could be why Sabu was released:
WWE issued a statement on their website confirmed the release of former ECW World champion Sabu, something which has been almost expected to happen for weeks now. According to one source, the plan for tonight’s ECW TV was for Sabu to put over Kevin Thorn. Sabu balked at the idea, claiming he had a neck injury.
There are some in the locker room who believe that Sabu arrived late to the tapings on purpose this week, expecting to be sent home since he’s made rumblings that he is unhappy working for the company. This isn’t the first time he has arrived to events without his gear either, including a taping a few weeks back where he had to wear Daivari’s gear.
There are rumors that there was some sort of incident involving Sabu which took place over the weekend in Cincinnati, but those are just rumors for now and nothing has been confirmed about the alleged incident.
As previously reported, Sandman has been in the same boat as Sabu for a while as far as backstage heat goes. At this point, nobody within the company would be too surprised if he was let go from his contract sometime in the near future.