It's because Uncle Dave I believe fucked up and then had to go out the next day and correct himself. So you have people running with his original comment that he thought Regal's contract was up in a few months and then others with the supposed real story that he signed a 3-year deal. I take it all with a grain of salt.
It does feel like a write off though but who knows. In WWE you'd just assume oh he's probably taking a backstage role or going to developmental to help out again. Everywhere else they don't really have that so is he going to do anything behind the scenes? Doubtful. Tony's rich as fuck so he probably has no qualms about paying talent to do nothing just like Vince had no qualms paying people to hang out in the back and wrestle once a month on Main Event.