The Tigers' coach, Mick Bett, moved to beef up his roster following last week's League Trophy final win over Sheffield Sharks, the club Thames Valley must also catch to retain their Budweiser League title.
But signing their 6ft 5in former player, Tony Balogun, led to the club's board asking Nelson to take a pay cut to bring the team's expenditure under the salary cap.
"Steve wasn't happy about that," Bett said. The board then decided to cut Nelson, who joined Thames Valley this season from Worthing. "This is not the way I wanted it to work out. I'm very sad it ended like this," Bett added.
Nelson resumes his Worthing career at home tonight against Tigers while Thames Valley's assistant coach, Paul James, another former England international, resumes his playing career after half a season on the bench.
Sheffield also moved in the transfer market, signing Iain McKinney, from Derby Bucks, as a replacement for Gary Smith who will be out for at least six weeks with a foot injury.Reuse content